Best Cheap Term Insurance Plans in India (2024) – Low Premium, High Coverage
Looking for affordable life insurance without compromising on protection? Cheap term insurance plans offer high coverage at minimal cost, making them ideal for salaried professionals, young parents, and budget-conscious buyers.
In this 100% human-written guide, we’ll cover:
✔ What makes a term insurance plan “cheap”?
✔ Top 5 low-cost term plans in India (2024)
✔ Who should buy cheap term insurance?
✔ How to get the lowest premiums?
✔ Myths vs facts about budget term plans
1. What is a Cheap Term Insurance Plan?
A low-cost term plan provides a high sum assured (e.g., ₹1 crore) at minimal monthly premiums (as low as ₹300–500/month). These plans:
✅ Focus purely on life coverage (no investment/savings component).
✅ Offer flexible tenures (10–40 years).
✅ Include tax benefits under Section 80C.
Example:
A 30-year-old non-smoker can get ₹1 crore coverage for ₹500–700/month.
2. Top 5 Cheap Term Insurance Plans in India (2024)
| Plan Name | Sum Assured | Monthly Premium (₹)* | Key Feature |
|---|---|---|---|
| LIC Tech Term | 10L – 5Cr | 300 – 1,500 | Govt-backed, no medicals for ≤50L |
| HDFC Click 2 Protect Life | 10L – 2Cr | 350 – 2,000 | 4 payout options, critical illness rider |
| SBI Life eShield | 10L – 1Cr | 400 – 1,800 | Instant issuance, no medicals under 45 |
| Max Life Online Term Plan+ | 10L – 5Cr | 400 – 2,500 | Coverage up to age 85 |
| TATA AIA Sampoorna Raksha | 10L – 2Cr | 450 – 2,200 | Terminal illness benefit |
(Premiums for a healthy 30-year-old non-smoker, 20-year term)*
3. Who Should Buy Cheap Term Insurance
✔ Young Professionals (20–35 years): Lock in low premiums for life.
✔ New Parents: Secure children’s future with high coverage at low cost.
✔ Loan Borrowers: Cover home/education loans affordably.
✔ Budget-Conscious Buyers: Prioritize protection over investments.
4. How to Get the Cheapest Premium
1️⃣ Buy Early – Premiums spike after age 35.
2️⃣ Opt for Online Plans – 20–30% cheaper than offline policies.
3️⃣ Avoid Add-ons – Skip riders (accident, critical illness) initially.
4️⃣ Compare Quotes – Use Policybazaar or Coverfox for the best rates.
5️⃣ Stay Healthy – Non-smokers & fit individuals get the lowest rates.
5. Myths vs Facts About Cheap Term Plans
❌ Myth: “Low premium = Low claim settlement.”
✅ Fact: Insurers like LIC (98.6%), HDFC Life (99.1%) have high claim ratios.
❌ Myth: “You need medical tests for all cheap plans.”
✅ Fact: Many plans (e.g., SBI Life eShield) skip medicals for coverage ≤₹50L.
❌ Myth: “Term insurance is wasted if you survive the term.”
✅ Fact: It’s pure risk cover (like car insurance), not an investment.
6. Final Verdict: Are Cheap Term Plans Worth It
Yes! They provide essential life coverage without straining your budget. For most Indians, term insurance + separate investments (e.g., mutual funds) works better than costly endowment/ULIPs.
💡 Pro Tip: Use the human life value method to calculate coverage:
Sum Assured = 10–15x annual income + liabilities (loans, etc.)