Term Insurance Companies
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Term insurance companies are the financial institutions approved by IRDAI to sell term insurance plans in India.
These term plans offer financial safety to your loved ones in case of your unfortunate demise during the policy tenure.
You can buy a term insurance plan at affordable premiums in your early 20s. 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. We have also provided a list of the 10 best term insurance companies in India that you can consider.
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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 |  SBI Life Insurance |
Private | 67315.6 | 2.2 | 98.39% | Rs. 3,05,413.6 |
| 2 |  LIC |
Public | 474668.14 | 1.8 | 98.6% | Rs. 40,42,655.5 |
| 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 |
SBI Life Insurance is India's second-largest insurance company which was incorporated in 2000. SBI Life Insurance deals with many products, including- term insurance, guaranteed return, annuity, child insurance, and retirement plans. SBI Life is one the fastest-growing insurance companies, with Rs. 3,05,413.6 cr. of assets under management in just 24 years.
| S.no | Plan Name | Sum Assured |
| 1. | SBI Life- Shield Next | Rs. 50 lakhs - No limit |
| 2. | SBI Life- Arogya Shield | Rs. 5 lakhs -25 lakhs |
| 3. | SBI Life- Smart Shield | Rs. 25 thousand - 50 lakhs |
| 4. | SBI Life- Grameen Bima | Rs. 25 lakhs - No limit |
The following are key parameters that will help you choose the best term insurance company in India:
pert Insights
For individuals 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 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.
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 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 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.
You can avail yourself of tax benefits of up to Rs 1.5 lakhs and an additional Rs 50,000 (for riders) for the premium paid in the same financial year.
Here are the reasons for buying a term insurance plan from PolicyX.com:
Term insurance is the right insurance product for covering you and your family for any emergency life situations. 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. We have also provided a list of the 10 best term insurance companies in India that you can consider for buying a term plan.
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.
Following is the list of top 5 term insurance based on the claim settlement ratio:
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).
In the recently published report, Max Life Insurance has the highest CSR, 99.51%, among all life insurance companies.
There are a total of 23 term insurance companies currently operating in India.
Yes, Maturity benefits are available in almost all the plans, such as LIC, ICICI Prudential, HDFC life insurance and much more.
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%.
Companies such as: HDFC Life, Aditya Birla, and TATA AIA Life Insurance offer a maximum no. of term insurance plans.
Yes, you can get affordable premiums in all the top 10 life insurance companies.
Yes, you can get covid 19 coverage in all the top 10 insurance companies.
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.
Yes, you can claim two-term insurance policies from two different insurance companies.
To choose the best term life insurance company you should consider various parameters including claim settlement ratio, solvency ratio, customer testimonials, and market reputation of the company.
There are various best term life insurance companies in India including LIC, Max Life, SBI, PNB Metlife, Tata AIA, Kotak Mahindra, etc.
Yes, LIC is one of the best term insurance company in India with a good claim, settlement ratio, solvency ratio, and past track record.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
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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.
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