Top 10 Insurance Policies in India 

Insurance is a crucial financial tool that provides protection against unforeseen risks. In India, various insurance policies cater to different needs—life cover, health emergencies, investments, and asset protection. This 2000-word guide explores the top 10 insurance policies in India, their benefits, key features, and how to choose the best one for your needs.

1. Term Insurance Plans

Best for: Affordable pure life cover

Term insurance is the simplest and most cost-effective life insurance policy. It provides a high sum assured at a low premium, ensuring financial security for the family in case of the policyholder’s untimely death.

Top Term Insurance Plans in India (2024)

• LIC Tech Term – High claim settlement ratio (98+%)

• HDFC Life Click 2 Protect 3D – Covers death, disability, and diseases

• ICICI Pru iProtect Smart – Affordable premiums with multiple riders

Key Features

✔ Low premium, high coverage
✔ Tax benefits under Sec 80C & 10(10D)
✔ Optional riders (accidental death, critical illness)
✔ No maturity benefit (only death benefit)

Who Should Buy?

• Young professionals

• Primary breadwinners

• Those with home loans or financial dependents

2. Health Insurance Plans

Best for: Medical emergencies & hospitalization

Rising healthcare costs make health insurance essential. A good policy covers hospitalization, pre/post-treatment expenses, and critical illnesses.

Top Health Insurance Plans (2024)

• Star Health Comprehensive Plan – Best for family floater

• HDFC Ergo Optima Secure – Lifetime renewability

• ICICI Lombard Complete Health Insurance – Wide network hospitals

Key Features

✔ Cashless hospitalization (network hospitals)
✔ Pre & post-hospitalization cover
✔ Daycare procedures covered
✔ Tax benefits under Sec 80D

Who Should Buy?

• Families with elderly members

• Individuals with no employer-provided health cover

• Those with pre-existing conditions (after waiting period)

3. Endowment Plans

Best for: Savings + life cover

Endowment plans combine insurance with savings, providing a lump sum on maturity or to nominees in case of death.

Top Endowment Plans (2024)

• LIC Jeevan Anand – Lifelong coverage + maturity benefit

• SBI Life Smart Wealth Builder – Guaranteed additions

• HDFC Life Sanchay Plus – Flexible premium payment terms

Key Features

✔ Guaranteed returns
✔ Death & maturity benefits
✔ Loan facility available
✔ Tax-saving under Sec 80C

Who Should Buy?

• Risk-averse investors

• Those planning for long-term goals (child’s education, retirement)

4. Unit-Linked Insurance Plans (ULIPs)

Best for: Investment + insurance

ULIPs invest a portion of the premium in equity, debt, or hybrid funds, offering market-linked returns.

Top ULIPs in India (2024)

• Max Life Fast Track Super – High liquidity

• Bajaj Allianz Future Gain – Multiple fund options

• Kotak Wealth Secure – Low surrender charges

Key Features

✔ Wealth creation potential
✔ Flexible switching between funds
✔ Tax benefits under Sec 80C & 10(10D)

Who Should Buy?

• Investors with moderate risk appetite

• Those looking for long-term wealth growth

5. Money-Back Policies

Best for: Periodic returns + life cover

Money-back policies provide survival benefits at intervals, ensuring liquidity during the policy term.

Top Money-Back Plans (2024)

• LIC Money Back 25 Years – High bonus rates

• Tata AIA Sampoorna Raksha – Flexible payout options

Key Features

✔ Regular payouts (e.g., 15%, 20%, etc.)
✔ Death benefit if the policyholder passes away
✔ Maturity bonus

Who Should Buy?

• Those needing periodic cash inflows

• Conservative investors

6. Child Insurance Plans

Best for: Securing a child’s future

These plans ensure funds for a child’s education/marriage even if the parent passes away.

Top Child Plans (2024)

• HDFC Life Smart Suraksha – Waiver of premium on parent’s death

• LIC New Children’s Money Back – Guaranteed payouts

Key Features

✔ Education fund secured
✔ Premium waiver benefit
✔ Maturity benefits at key life stages

Who Should Buy?

• Parents with young children

• Those planning for future education expenses

7. Whole Life Insurance

Best for: Lifelong coverage

Unlike term plans (which expire at 60-80 years), whole life insurance covers the policyholder till age 100.

Top Whole Life Plans (2024)

• LIC Whole Life Policy – Bonus accumulation

• SBI Life Saral Swadhan – Simple terms

Key Features

✔ Coverage for entire lifetime
✔ Savings component (bonus/maturity benefit)

Who Should Buy?

• Those wanting lifelong security

• High-net-worth individuals

8. Critical Illness Insurance

Best for: Protection against major diseases

Pays a lump sum upon diagnosis of critical illnesses (cancer, stroke, kidney failure).

Top Critical Illness Plans (2024)

• Max Life Critical Illness Plan – Covers 50+ illnesses

• Bajaj Allianz Critical Illness Cover – Affordable premiums

Key Features

✔ One-time payout on diagnosis
✔ No hospitalization required

Who Should Buy?

• Those with family history of critical illnesses

• Individuals without sufficient health cover

9. Personal Accident Insurance

Best for: Accidental death & disability

Provides financial support in case of accidents leading to disability or death.

Top Accident Plans (2024)

• HDFC Ergo Personal Protect – High coverage at low cost

• ICICI Lombard Personal Accident Cover – Worldwide coverage

Key Features

✔ Permanent/temporary disability cover
✔ Ambulance & hospitalization expenses

Who Should Buy?

• Frequent travelers

• Professionals in high-risk jobs

10. Home Insurance

Best for: Property protection

Covers damages due to fire, theft, natural disasters, etc.

Top Home Insurance Plans (2024)

• Tata AIG Home Insurance – Comprehensive coverage

• Bajaj Allianz Home Insurance – Affordable premiums

Key Features

✔ Structure & contents cover
✔ Third-party liability

Who Should Buy?

• Homeowners

• Those living in disaster-prone areas

How to Choose the Best Insurance Policy?

1. Assess Your Needs – Life cover, health, or investment?

2. Compare Premiums & Coverage – Use online aggregators like Policybazaar

3. Check Claim Settlement Ratio (CSR) – Higher CSR = Better reliability

4. Look for Riders – Critical illness, accidental death, etc.

5. Read Policy Wordings Carefully – Exclusions, waiting periods