Term insurance is the most cost-effective way to secure your family’s financial future. In 2025, several insurers offer competitive plans with high claim settlement ratios — an important signal of reliability. Below is a practical comparison, what to watch for, and how to choose the right plan for your needs.

Why Claim Settlement Ratio (CSR) Matters

CSR shows the percentage of claims an insurer settled during a financial year. A high CSR indicates an insurer’s track record in honoring death claims — crucial for term policies where the nominee depends on claim payout. However, CSR should be viewed with other metrics (policy count, solvency, customer service) for a complete picture.

How We Picked These Plans

• Competitive premium for given age & sum assured
• Simple policy wording — fewer exclusions and waiting periods
• Availability of useful add-ons (critical illness, accidental death, waiver)
• Strong CSR and customer service reputation

Top Term Plans to Consider in 2025 (Shortlist)

Below are widely recommended term plans (alphabetical) that balance affordability, features and insurer reliability. (Note: exact premium depends on your age, health, sum assured and term.)

Key Features to Compare (Checklist)

1. Sum assured & policy term — ensure it covers liabilities like loan, living expenses & future goals.
2. Riders & add-ons — critical illness, accidental death, waiver of premium.
3. Premium stability — check renewal rules and whether premium increases with age.
4. Exclusions & waiting periods — read policy wordings carefully.
5. CSR & claim turnaround — prefer insurers with consistent high CSR and fast claim payments.

Sample Premium Comparison (Indicative)

Premiums vary with age, sum assured, smoking status and medical tests. Use insurer calculators or comparison portals to get exact quotes. Always compare at least 3 insurers for the same cover.

How to Buy — Step by Step

1. Decide sum assured (10–15× annual income is a common starting point).
2. Compare 3–5 plans for feature set and premium.
3. Check CSR & read sample policy PDF for exclusions.
4. Buy online for lower premiums and faster issuance (most term plans issue instantly after eKYC/medical).
5. Maintain records: policy copy, medical reports and nominee details.

When CSR Can Be Misleading

CSR for a single year may fluctuate due to bulk claims or settlements by one large insurer. Also, CSR as a percentage of *number of claims* can differ from CSR by *amount paid*. So, cross-check multiple years and read insurer disclosures.

Practical Buying Tips

• Buy early — premiums are lowest when you’re young and healthy.
• Be honest in the proposal form — non-disclosure can lead to rejection later.
• Prefer plans with clear policy language and simple claim processes.
• Keep family updated on policy details and nominee information.

Conclusion

There’s no single “best” term plan for everyone. Choose a plan that gives the required sum assured at an affordable premium, from an insurer with a strong CSR track record and fast claim service. For most buyers in 2025, products from HDFC Life, ICICI Prudential, Max Life/Axis-Max, Tata AIA, SBI Life and LIC are worth comparing first.