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Term insurance companies

Term insurance companies are the financial institutions approved by IRDAI that sell term insurance plans.

These term plans offer financial safety to your loved ones in case of your unfortunate demise during the policy tenure.

As per the latest report by IRDAI, there are 23 different term insurance companies operating in India. But how can someone know which is the best among them? The task can be a tricky one for a common man. Therefore, we have listed some parameters below to help you know the best term plan company for yourself and make a wise choice.

Best Term Insurance Plans in India

Claim settlement ratio

1

The highest is
the best.

Solvency ratio

2

Must be
above 1.5

Brand reputation

3

How well-known
the company is

Customer reviews

4

What the existing customers
say about the company

Best Term Insurance Companies in India in 2024

Being an aware citizen, our biggest concern is whether my insurance company will support my family in my absence or how financially stable will the insurance company be in case of a heavy claim.

So below is the list of the 10 best term insurance companies in India along with their claim settlement ratio (CSR), annual premiums, solvency ratio, and asset under management (AUM) as per the latest report by IRDAI in FY 2022-2023. These metrics help you make a wise decision.

S.No Company or Insurer Name Insurer Type Annual Premiums in crores Solvency Ratio CSR Asset under management
(AUM) in crores
1
LIC
Public 474668.14 1.8 98.6% Rs. 40,42,655.5
2
SBI Life Insurance
Private 67315.6 2.2 98.39% Rs. 3,05,413.6
3
ICICI Prudential life insurance
Private 39932.78 2 97.8% Rs. 2,46,442.4
4
HDFC Life Insurance
Private 57533.42 2 99.39% Rs. 2,36,994.3
5
Max Life Insurance
Private 25341.91 1.9 99.51% Rs. 1,22,079.6
6
Bajaj Allianz Life Insurance
Private 19461.43 5.2 99.04% Rs. 89,396.1
7
Aditya Birla Sun Life insurance
Private 15069.69 1.7 98.12% Rs. 69,887
8
Tata AIA Life insurance
Private 20503.5 1.8 99.01% Rs. 69,742.5
9
Kotak Mahindra Life insurance
Private 15320.46 2.8 98.82% Rs. 63,962.7
10
PNB Metlife Life insurance
Private 8785.21 1.9 99.06% Rs. 39,619.99
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Brief Overview of Best term insurance companies in India

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is one of the first publicly held life insurance companies incorporated in 1956. From the beginning, LIC has been one of the most prominent and best life insurance companies in all sectors. The company has over 1572 satellite branches and eight zonal offices PAN India. Even today, LIC is one of the largest insurance companies in terms of annualized premiums.

Why to choose Life insurance corporation (LIC):
  • You have the option to choose between the level sum assured and the increasing sum assured.
  • You can choose between flexible premium payment terms such as: (Single, Regular, Limited).
  • The company has served more than 10 million customers since its inception which highlights the trust of customers.
  • With LIC, you can get a guaranteed annual payout of 10% of the sum assured, starting from 3 to 6 years after the premium payment term.
List of popular term insurance plans offered by LIC:
S.no Plan Name Sum Assured
1. LIC's Saral Jeevan Bima Rs. 5 Lacs to 25 Lacs
2. LIC's Jeevan Kiran Rs. 15 lacs to no-limit
3. LIC's New Tech Term Rs. 15 lacs to no-limit
4. LIC's New Jeevan amar Rs. 25 lacs to no-limit

How to Choose the Best Term Insurance Company in India?

The following are key parameters that will help you choose the best term insurance company in India:

Maternity Benefit Rider

CSR

  • It signifies how promptly the insurer settles claims.
  • It signifies the number of claims settled each year out of the claims received.
  • To know the exact CSR of the company, you can visit our data lab.
Maternity Benefit Rider

Premiums Cost

  • Look for companies that do not charge any hidden costs with their premiums.
  • Identify the best company that provides the best value for premiums.
  • Premium costs should be justifiable with the coverage, and the sum assured.
Maternity Benefit Rider

Customer support

  • Contact people who recently purchased the same term plan and ask what is good and bad.
  • Ask about the after-sales services of that company with their customers.
  • You can also call PolicyX on 1800-420-0269 for more information on the best term insurance plans.
Maternity Benefit Rider

Online Reviews

  • Go through the insurer's website to see the customer's point of view.
  • Look for customer feedback over different social media platforms.
  • Read reviews on social platforms such as Google, Reddit, and Quora.
Maternity Benefit Rider

Solvency ratio

  • It signifies that the insurer has a stable financial situation.
  • It denotes an insurance company's assets and liabilities.
  • It should be more than 1.5 for the same financial year.
Maternity Benefit Rider

Insurer’s Reputation and Brand Image

  • An insurer with a good reputation often provides the best services to their customers to maintain that image.
  • The reputation of an insurance company is created with its quality services and customer testimonials.
  • An insurance company with good customer testimonials and reviews can be considered to purchase a term plan.

Who Should Buy Term Insurance?

For those with financial dependents, term plans offer a secure and affordable way to provide financial protection. It covers a range of individuals such as parents, married couples, self-employed or business persons, new parents, and taxpayers. So, let's see how these individuals can benefit from the security of a term insurance plan.

Salaried Individual

Salaried individuals should opt for buying a term insurance plan so that if something happens to them, their dependents can get a lump sum amount to run their lives without financial struggles.

Self-employed Individual

People who are business owners, big or small, should buy a term insurance plan so that when they are not around their business or family doesn't suffer financially.

Parents

Parents with dependent children should invest in a term insurance plan so that their children are well taken care of financially even in their absence.

Married couple

Married people should buy a term insurance policy so that the spouse is financially secure if something happens to the policyholder. Term insurance policies also offer life cover to both spouses in one plan.

Tax Payers

You can avail yourself of tax benefits of up to 1.5 lakhs and an additional 50,000 (for riders) for the premium paid in the same financial year.

Why Should You Buy Term Insurance From PolicyX.com?

Here are the reasons for buying a 1 crore term insurance plan from PolicyX.com:

  • Compare and choose the best

    PolicyX helps you compare a wide range of plans based on their features and choose the one that best fits your requirements.
  • Hassle-free purchase process

    Buying term plans from PolicyX.com is a hassle-free process as it lets you compare various term plans within 30 seconds.
  • Customer’s choice

    PolicyX is a leading insurance aggregator that is trusted and loved by customers due to its best services and support.
  • Good customer service

    You can contact PolicyX by calling 1800-420-0269. One of our insurance experts will connect with you shortly to address all your concerns.
  • Claim settlement support

    PolicyX stands with you even in the hardest of times and provides you with dedicated claim settlement support when required.

Final words

Term insurance is the right insurance product for covering you and your family for a specific period. Properly analyzing term insurance companies is essential to know whether term insurance provides significant coverage and comes with affordable premiums. However, a best-term insurance plan consists of all the important parameters, such as good CSR, customer support, rider benefits, etc. So above, we have listed the best term insurance companies available in the Indian market and what it takes to choose the best one.

For more information related to the term plans, you can visit PolicyX.com, or call us at 1800 - 420 - 0269. Our insurance experts listen to your unique needs and suggest the best term plan for you.

Term Insurance Companies: FAQs

1. What are the top 5 term insurance companies based on claim settlement ratio?

Following is the list of top 5 term insurance based on the claim settlement ratio:

  • Max Life insurance - (99.51%)
  • HDFC Life Insurance- (99.39%)
  • Bajaj Allianz life insurance-(99.04%)
  • Edelweiss tokio life insurance-(99.2%)
  • Aegon Life insurance- (99.03%)

2. I am not satisfied with my current term insurance company, how can I switch to another and take back all the paid premiums?

To switch between a term insurance company, you need first to surrender the premium term insurance plan and later on purchase a second one. In case, your free-look period period is still active you can get back all the paid premium(exclusion of taxes).

3. Which life insurance company has the highest CSR?

In the recently published report, Max Life Insurance has the highest CSR, 99.51%, among all life insurance companies.

4. How many term insurance companies are currently operating in India?

There are a total of 23 term insurance companies currently operating in India.

5. Is any term insurance company giving maturity benefits upon policy completion?

Yes, Maturity benefits are available in almost all the plans, such as LIC, ICICI Prudential, HDFC life insurance and much more.

6. Out of HDFC Life and ICICI Prudential, which term insurance company is best in terms of Claim settlement ratio or CSR?

As per the latest IRDAI Report of 2022-2023 ICICI Prudential reported a CSR of 97.8% while HDFC Life reported a CSR of 99.39%.

7. Which life insurance offers a maximum number of term insurance plans?

Companies such as: HDFC Life, Aditya Birla, and TATA AIA Life Insurance offer a maximum no. of term insurance plans.

8. Should a best-term insurance company offer affordable premiums?

Yes, you can get affordable premiums in all the top 10 life insurance companies.

9. Can I get COVID-19 coverage in all top-term insurance companies?

Yes, you can get covid 19 coverage in all the top 10 insurance companies.

10. How many days does a term insurance company take to settle a claim?

Generally, the insurer company will take upto 30 days to settle a claim but it also depends from case to case. If there is some issue with documents it would also take more than 30 days.

Term Insurance Companies

Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.

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Written By: Naval Goel

Naval Goel is the Founder and CEO of PolicyX.com (IRDA- Approved Insurance Comparison Website). He is a CFA charter holder (USA) and FRM (GARP). He holds an MBA from IIFT, Delhi, and is also an Associate from the Insurance Institute of India. Naval is an avid investor and entrepreneur who has a deep understanding of the Indian equity market and insurance sector. He has been investing for more than 10 years now and is a CFA charter holder.