Best Term Insurance Plans in India 2026 | How to Choose the Right Policy

1 min 54 sec · 27 August 2026 · nyvo

How to choose a term plan without getting lost in features. The video covers how much cover to take, why a plain vanilla policy usually beats the add-ons, and two insurer metrics to check before you compare premiums: the claim settlement ratio, and the amount settlement ratio that says how much of what was claimed actually got paid.

What this video says

  • Term insurance covers your liabilities: if something happens to you during your working years, it supports your family until they are self-reliant.
  • The video's rule of thumb for how much cover to buy is 15 to 20 times your expenses (nyvo's current data: nyvo's shortcut is 15 times annual take-home pay, and its fuller method adds liabilities, 10 to 15 years of household expenses and goals, minus liquid assets and existing cover).
  • It recommends a plain vanilla term plan without add-ons, with enough cover for your family's expenses.
  • The first metric to check is the claim settlement ratio, which it says should be above 98%; it adds that after 3 years an insurer cannot deny a claim.
  • The second is the amount settlement ratio, which shows whether large claims, such as ₹5 crore, are paid in full; the video says it should be above 90%.
  • Once insurers clear both metrics, it says to buy from the one with the lowest premium, since each underwrites differently, and to disclose all key details when you apply.

Figures to check against today's data

The video was recorded on 27 August 2026. Where nyvo's current data states a figure differently, it is below.

In the videonyvo's current data
0:23A general thumb rule is that you should take 15 to 20 x of your expensesnyvo's shortcut is 15 times annual take-home pay; its own method is liabilities, plus 10 to 15 years of household expenses, plus goals, minus liquid assets and existing cover.

Chapters

Chapters as published with the video.

Transcript

From the video's English captions, with misheard names corrected. Tap a time to play from that point.

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0:00Let's talk about best term insurance plan in India.

0:08So, let me first tell what is term insurance. You buy term insurance to cover for your liability. If you are working till 60, 65, and something happens to you, then your family will be covered till they are at the age that they are self-reliant.

0:21Now, how to decide the cover? A general thumb rule is that you should take 15 to 20 x of your expenses, so that your family, your children are covered even if you are not there.

0:32Now, talking about how you should select, what features you should see while buying the term insurance. First recommendation in that will be to buy a vanilla plan.

0:41When I say vanilla, there is no need to take add-ons with term insurance. Buy a plan which provides you a good cover that can cover expenses for your family upon your death.

0:50The top metric to see is claim settlement ratio. The claim settlement ratio should be greater than 98%. In term insurance, government has mandated that after 3 years, company can't deny you the claim. Generally, many policies have greater than 98% claim settlement.

1:04You should see the amount settlement ratio. Even if the claim goes up to 5 crore, is term insurance company providing the whole 5 crore amount or not? Many companies pass the lower amount of claim, but don't pass the higher amount of claim. So, that's why amount settlement ratio is important.

1:21Any term insurance plan that you are buying should have greater than 90% of amount settlement ratio.

1:27Now, after seeing all these metrics, what you should see is the premium of the plan. Different companies underwrite differently and has therefore different premium. Once a company satisfies these metrics, you can go ahead and buy the policy from the company which provides you the lowest premium.

1:42Just ensure while buying the plan, you are providing all the key details required by that company.

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