Term Insurance

Best Term Insurance Companies in India 2024

by SMCIB on Wednesday, 10 January 2024

Best Term Insurance Companies in India 2024

Imagine you want to buy an air conditioner. You'll first conduct proper research and filter the top brands available on the market. Next, you’ll compare various models based on their price, features, customer reviews, ratings, etc. You'll then zero in on the model that best suits your needs and budget, choosing a brand that offers the best features and the best service.

Similarly, when it comes to term life insurance, it is important to choose a trustworthy and reputable insurer. After all, the only reason you buy term insurance is to protect your family financially - should the worst happen. In this article, we will discuss the best term life insurance companies in India and the things you should look out for in them. 

Let’s begin!
 

What is Term Insurance?

Term insurance is an excellent option for anyone who wants to ensure their family's financial security. If something unfortunate happens to you, the policy provides a fixed amount of money to your loved ones, giving them the financial security and stability they need to move forward. However, you need to remember that term insurance is a pure risk cover. This means it does not give any payout if you survive the policy term.

The main purpose behind purchasing a term insurance policy is to secure the financial future of your family when you are no longer around. And, you would obviously want them to receive the entirety of the benefits under the policy so they can tackle such a hard and taxing time with ease. The money will help them meet their financial obligations and maintain their lifestyle. 

To make sure that your family members receive the complete benefit under your term insurance policy, you need to buy it from a credible and trustworthy insurance company. Picking the best insurance company will give you the assurance that your family will be well provided for - since you will be out of the picture then.

But, how do you choose the best insurance company? Let’s see. 
 

Best Term Insurance Companies in India

Below is the list of some best term insurance companies in India. Please note that the data in the below table is sourced from insurer websites, public disclosure - Q4 FY 2022-2023 and IRDAI Annual Report 2021-22.
 

Company’s Name

Founded in the year

JV Partners

Claim Settlement Ratio (No. of claims)

Claim Settlement Ratio (Value of claims)

Solvency Ratio

Claim Complaints per 10000 policies

Aegon Life Insurance Company Limited

2008

Aegon N.V. and Times Group (Bennett, Coleman and Company)

99.37%

 

 

98.76%

 

 

275%

 

 

61

 

 

Bajaj Allianz Insurance Company Limited

2001

Bajaj Finserv and Allianz SE

99.04%

 

 

93.45%

 

 

516%

 

 

5.55

 

 

Bharti Axa Life Insurance Company Limited

2006

AXA Group and Bharti Enterprises

99.10

96.36%

163%

151

Canara HSBC Life Insurance Company Limited

2008

Canara Bank, HSBC Insurance Holdings Limited and Punjab National Bank

99.01%

 

 

96.42%

 

 

252%

 

 

27

 

 

HDFC Life Insurance Company Limited

2000

HDFC Ltd. and Standard Life Aberdeen

99.39%

 

 

89.38%

 

203%

 

2

 

 

ICICI Prudential Life Insurance Company Limited

2001

ICICI Bank Limited and Prudential Corporation Holdings Limited

95.28%

 

 

95.49%

 

 

209%

 

 

16

 

 

Kotak Life Insurance Company Limited

2001

Kotak Mahindra Bank Ltd and Old Mutual Public Limited Company

98.25%

 

95.53%

 

 

283%

 

 

7.74

 

 

Life Insurance Corporation of India

1956

-

98.52%

 

 

96.02%

 

 

187%

 

 

4.88

 

 

Max Life Insurance Company Limited

2000

Max Financial Services and Axis Bank

99.51%

 

 

96.71%

 

 

190%

 

 

10

 

 

PNB Met Life Insurance Company Limited

2001

Punjab National Bank and MetLife International Holdings LLC (MIHL)

99.06%

 

 

93.35%

 

186%

 

 

64

 

 

SBI Life Insurance Company Limited

2000

State Bank of India and BNP Paribas Cardif S.A

93.09%

 

 

86.22%

 

 

215%

 

 

5.85

Tata AIA Life Insurance Company Limited

2001

Tata Sons Private Limited and AIA Group Limited

99.01%

 

 

94.65%

 

 

186%

 

 

3

 

Now that we’ve looked at some of the top term insurance companies in India, let’s take a look at some key factors you should keep in mind while buying a term insurance policy in India.
 

Factors To Keep An Eye On While Buying Term Insurance From An Insurance Company

Here are some of the aspects to watch out for when you are picking an insurance provider -

1️⃣ Solvency Ratio
The solvency ratio is a crucial measure that gauges how financially dependable an insurer is and its ability to fulfil financial commitments. As per the Insurance Regulatory and Development Authority of India's guidelines, all the insurance providers in India are mandated to maintain a minimum solvency ratio of 150%. This ensures they hold ample capital to honour their responsibilities.

2️⃣ Claim Settlement Ratio
The Claim Settlement Ratio(CSR) is the proportion of claims an insurance company settles to the total number of claims it receives in a given financial year. You should consider this ratio alongside other factors like the speed of claim settlement, claim complaints received by an insurer, etc., when selecting an insurance company.

3️⃣ Features/Benefits Offered
Before you settle on a policy, take the time to compare the benefits and features offered by different companies. The extent of coverage provided by the insurer directly influences the protection your family gets in challenging times. It is crucial to pick an insurance company that not only provides ample coverage but also offers a variety of benefits that suit your and your family’s requirements. This way, you ensure your family is thoroughly safeguarded when it matters the most.

4️⃣ Premiums
The premium is a preset amount you need to pay to keep your policy active. Since a term insurance policy is a commitment for the long haul, it is important to select an insurance company that offers you desired coverage at a rate that is easy on your wallet. This ensures you can comfortably manage the premiums over the entire payment period. So, take the time to compare premium quotes from different insurers, and pick the one that offers comprehensive yet affordable coverage to make the most of your hard-earned money.

5️⃣ Customer Service
Before deciding on the best term insurance company in India, don’t forget to evaluate their customer service. Go for a company that provides robust customer support, available 24/7. This ensures that you and your family can reach out to them whenever needed, ensuring reliable and responsive assistance during crucial times.

6️⃣ Past Reviews
Last but not least, go through customer reviews before finalising your decision. This step provides valuable insights into the company's service quality, how they deal with claims, and other essential aspects. Connect with both current and former customers to hear about their experiences. By doing so, you will get a clearer picture of the company and be better equipped to determine if it aligns with what you are exactly looking for.

So, these were some of the important things to look at while deciding on the best term insurance company in India.
 

Term Insurance Premium Calculator: Understanding The Term Insurance Premium Calculator

As discussed above, to keep your term insurance coverage intact, you are required to make timely premium payments. These payments can be made either monthly, quarterly, half-yearly, or annually. It is crucial to choose a payment frequency that aligns with your budget.

This is exactly where a term insurance premium calculator proves invaluable – helping you find a policy that not only meets your financial needs but also fits comfortably within your budget.
 

What is a Term Insurance Premium Calculator?

A term insurance premium calculator, as the name implies, is an online tool that helps you figure out the premiums you will be paying. What makes this tool more appealing is its user-friendly nature – there is no need to spend hours on hold waiting to speak to an insurance agent. This tool makes calculating term insurance premiums a breeze, offering a clear understanding of the associated costs. You can effortlessly compare various policies, helping you identify the one that aligns best with your unique needs and budget – all of this in just a few clicks.
 

How Does a Term Insurance Premium Calculator Work?

A term insurance premium calculator simplifies the process of determining premiums for various term life insurance policies.

Here is what you need to do -

  1. Just input some basic information on the insurance platform that provides such a calculator – like your age, gender, income, policy tenure, the coverage amount, etc.
  2. Once you have entered these details, the term insurance premium calculator takes care of the rest. It gives you a precise estimate of the premiums for a variety of term insurance plans, making the process quick and straightforward.
  3. Furthermore, you have the freedom to customise your policy to suit your preferences – be it tweaking the sum assured, adjusting the policy tenure, adding riders, opting for additional features and benefits, etc. This allows you to assess how these changes impact your premium, empowering you to make a thoughtful decision about your term insurance.
     

Term Insurance Companies

Here is a list of some of the top term insurance companies in India -

  • Aegon Life Insurance Company Limited
    Aegon Life Insurance Company, formerly known as Aegon Religare Life Insurance Company, is a joint venture between Aegon NV, a distinguished global life insurance provider, pensions and asset management services, and Bennett, Coleman and Company Limited, largest media conglomerate in India, also widely recognised as the Times Group.
    • Founded in year: 2008
    • Headquarters: Mumbai
    • CEO / CMD: Mr. Satishwar Balakrishnan
       
  • Bajaj Allianz Insurance Company Limited
    Bajaj Allianz, also known as Bajaj Allianz Life Insurance Company Limited, is a joint venture between Bajaj Finserv Limited, one of India’s predominant non-banking financial institutions, and Allianz SE, a leading global insurer and asset manager.
    • Founded in year: 2001
    • Headquarters: Pune
    • CEO / CMD: Mr. Tarun Chugh
       
  • Bharti Axa Life Insurance Company Limited
    Bharti Axa Life Insurance Company Limited is a joint venture between AXA Group and Bharti Enterprises. It delivers a wide array of life insurance products to fulfil the varying needs of customers across the country.
    • Founded in year: 2006
    • Headquarters: Mumbai
    • CEO/CMD: Parag Raja.
       
  • Canara HSBC Life Insurance Company Limited
    Canara HSBC OBC is a Life Insurance company in India. It is a joint venture promoted by Canara Bank, HSBC Insurance (Asia Pacific) Holdings Limited and Punjab National Bank.
    • Founded in year: 2008
    • Headquarters: Gurugram
    • CEO/CMD: Anuj Mathur
       
  • HDFC Life Insurance Company Limited
    HDFC Life, also known as HDFC Life Insurance Company Limited, is a joint venture between HDFC Limited, one of India’s prominent housing finance institutions and Standard Life Aberdeen, a leading global investment company. 
    • Founded in year: 2000
    • Headquarters: Mumbai
    • CEO/CMD: Vibha Padalkar
       
  • ICICI Prudential Life Insurance Company Limited
    ICICI Prulife, also known as ICICI Prudential Life Insurance Company Limited, is a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited.
    • Founded in year: 2001
    • Headquarters: Mumbai
    • CEO/CMD: Mr. Anup Bagchi
       
  • Kotak Life Insurance Company Limited
    Kotak Life is a joint venture between Kotak Mahindra Bank and Old Mutual Public Limited Company.
    • Founded in year: 2001
    • Headquarters: Mumbai
    • MD: Mr. Suresh Agarwal
       
  • Life Insurance Corporation of India
    LIC, referred to as Life Insurance Corporation of India, is owned and operated by the Government of India.
    • Founded in year: 1956
    • Headquarters: Mumbai
    • Chairman is Mr. Siddhartha Mohanty
       
  • Max Life Insurance Company Limited
    Max Life Insurance Company Limited, formerly known as Max New York Life Insurance Company Limited, is a joint venture between Max Financial Services and Axis Bank.
    • Founded in year: 2000
    • Headquarters: New Delhi
    • CEO/CMD: Mr. Prashant Tripathy
       
  • PNB Met Life Insurance Company Limited
    PNB MetLife, previously known as MetLife India Insurance Company Limited, is a prominent life insurance company in India. It is a joint venture between Punjab National Bank (PNB) and MetLife International Holdings LLC (MIHL).
    • Founded in year: 2001
    • Headquarters: Mumbai
    • MD & CEO: Mr. Ashish Kumar Srivastava
       
  • SBI Life Insurance Company Limited
    SBI Life Insurance Company Limited is a joint venture between SBI Bank and BNP Paribas Cardif.
    • Founded in year: 2001
    • Headquarters: Mumbai
    • CEO: Mahesh Kumar Sharma
       
  • Tata AIA Life Insurance Company Limited
    TATA AIA, also known as TATA AIA Life Insurance Company Limited, is a joint venture between Tata Sons Private Limited and AIA Group Limited (AIA).
    • Founded in year: 2000
    • Headquarters: Mumbai
    • CEO: Mr. Naveen Tahilyani
       

How to Choose The Best Term Insurance Company in India?

Here is a brief guide to help you select one of the best term insurance companies in India -

1️⃣ Customisation Options
The best term insurance company in India is the one that provides a policy that aligns perfectly with your family’s needs. A term insurance plan offers a variety of customisation options, allowing you to easily tailor a plan that meets your preferences and the unique needs of your family. Here are some ways you can customise your coverage -

  • Premium Payment Frequency
    With term insurance, you have the freedom to customise your premium payment terms. You can choose between four payment options, giving you the convenience to match it with your financial preferences and lifestyle.
    • Annually
    • Semi-annually
    • Quarterly
    • Monthly
       
  • Premium Payment Term
    Term insurance policies also give you the flexibility to choose from various premium payment terms -
    • Limited Pay Option
      This option allows you to accelerate premium payments with larger and swifter instalments, providing relief from an extended financial commitment.
    • Single Pay Option
      With this option, you pay the entire premium in one lump sum at the time of purchasing the policy.
    • Regular Pay Option
      In this option, you can pay the premiums regularly till the end of the policy period.

       
  • Claim Payout Option
    A term insurance policy provides the flexibility to configure how your family receives the claim amount. You have various claim payout options to choose from -
    • Lump-sum Payout Option
      You receive the entire claim amount in one lump sum. This option is suitable if you have outstanding loans or financial obligations.
    • Monthly Income Payout Option
      Your family gets the claim amount in monthly instalments over a set period. You can go for this option if you wish to support your family's day-to-day needs and don't hold any loans or financial obligations.
    • Lump-sum with monthly income payout option: This option blends the previous two choices. A portion of the claim is provided as a lump sum, and the remaining amount is distributed in monthly instalments over a specified period.

Selecting the appropriate payout option empowers you to customise the benefits of your term insurance policy to match your family's financial circumstances.

  • Increasing Cover Option
    As time goes on and you shoulder more financial responsibilities, it is natural for your expenses and liabilities to increase. You may need to consider upgrading your term insurance policy’s coverage to guarantee that your family stays sufficiently protected. This is where increasing cover offers a helping hand.

In this option, your sum assured gradually grows at specified intervals until it reaches a predetermined maximum limit. This ensures that your insurance coverage aligns with the ever-changing needs of your family over time.

  • Riders
    Riders are optional add-ons you can include in your base term insurance policy for an additional cost. They provide extra payouts under specific circumstances. For example, the Accidental Death Benefit Rider offers an additional payout in case you pass away due to an accident. Some of the riders available with term insurance plans include -
    • Critical Illness Rider
    • Accidental Disability Rider
    • Accidental Death Benefit Rider
    • Waiver of Premium due to Critical Illness Rider
    • Waiver of Premium due to Accidental Disability Rider
    • Hospital Care Rider
    • Surgical Care Rider

Note: This is an indicative list. There may be other types of riders depending on the insurer. Ensure you review the policy wordings to understand the available riders before making a purchase.

2️⃣ Customer Service
When purchasing term insurance, one often overlooked aspect is the quality of customer service provided by the insurance company. It is essential to consider this factor as you may have questions, need to make policy adjustments, or your nominee may require help during the claims process. In the event of a claim, your family may need to contact customer service for guidance.

Choosing an insurance company that offers round-the-clock customer care is crucial. Assess an insurance company's reputation and customer service quality through reviews, checking their social media presence, and seeking feedback from current or past customers. These steps can guide you in making an informed decision about which insurance company is better suited to your needs.

3️⃣ Claims Experience
It is essential to place a strong focus on the quality of the claims experience as well. It is worth noting that in the event of a claim, your family will be the one dealing with the entire settlement process, not you. Thus, the efficiency and effectiveness of this process become crucial. Key factors you should consider while choosing from the best term insurance companies in India include the solvency ratio, claim complaints %, speed of claim settlement, etc. and any feedback or concerns related to the claims process. These metrics collectively offer insights into the claims track record of an insurance company.

4️⃣ Premium Amount
You discover a term insurance company that meets all your criteria, only to find out that the plan it offers is not within your budget. If you have tight finances, insurance premiums can feel like an added financial burden. Even though a term insurance policy is known for being more budget-friendly, some may find it challenging to allocate a portion of their income towards these premiums. Hence, it is crucial to search for an insurance company that provides optimal coverage and features without stretching your budget too thin.

 

Why Consider SMC for Buying Term Insurance?

Purchasing a term insurance plan is a decision that typically happens only once, or maybe twice, in a lifetime. Yet, it holds the power to shape the quality of life your family will experience when you are no longer there. It is not just a policy; it is a long-term commitment designed to serve as a financial safety net for your family, providing them with the means to pursue their dreams and life goals, even in your absence. Making the right choice in this regard is, without a doubt, a profoundly important decision.

Choosing the right term insurance plan can be quite daunting amid the multitude of options available in the market. However, worry not! At SMC, we are here to lend a helping hand and guide you through the process, ensuring that you make the crucial decision that aligns perfectly with your needs and priorities.

Here are some reasons why you should consider buying term insurance plans from us - SMC -

  • Unbiased Advice
    Our recommendations are not swayed by any allegiance to a specific insurer. Our sole focus is on upholding your interests and assisting you in discovering the policy that best suits your needs.

     
  • No Spamming
    At SMC, we value your privacy and guarantee a spam-free environment. Rest assured, we will contact you only upon your request, ensuring a hassle-free experience as you navigate the insurance buying process.

     
  • Claims Assistance
    We are dedicated to offering complete support throughout the claims process. We know that the true value of insurance comes to light only when it serves its purpose. Count on us to guide you through the claims journey, ensuring your family gets the financial support they require during these times.

     

FAQ's

  1. Which term insurer is best in India?
    The best term insurance company is the one that has a solid history of successfully handling claims, offers excellent customer service, and provides comprehensive coverage at an affordable premium.

     
  2. How many term insurance companies are present in India?
    In India, there are currently 24 registered life insurance companies under IRDAI.

     
  3. Which term insurance company has the best claim settlement ratio?
    Max Life Insurance Company Limited has the best claim settlement ratio as of June 2023. 

     
  4. Should a good term insurance company cover death by COVID as well?
    In India, all types of deaths are covered under a policy term insurance provided by insurance companies, including Covid-19. The only exception is suicide within the first year of buying the policy. In this case, the insurer will refund all the premiums paid to your family.

     
  5. If I choose the best term insurance company for myself, how much time will it take to settle the claims?
    According to regulation 14(2)(i) of IRDAI (Protection of Policyholders’ Interests) Regulations, 2017, in the case of a life insurance policy's death claim, the insurance company should settle, reject, or repudiate the claim within 30 days from receiving all necessary documents and clarifications.

     
  6. Can I switch from one term insurance company to another for better term plans?
    No, portability, i.e.,  the option to switch from one insurance company to another, does not exist in term insurance.

     
  7. Is it essential to opt for a term insurance company with a wide network of hospitals?
    Term insurance is a pure risk cover which offers a sum of money known as a sum assured to your family in case of your unfortunate demise during the policy term. It does not involve network providers, unlike health insurance.

     
  8. Are premiums the only factor to consider when selecting a top term insurance company in India?
    When selecting a life insurance company, it is crucial to look beyond the premium. Consider aspects like solvency ratio, complaints received related to claims, speed of claim settlement, reviews from the customers, etc. to ensure you are choosing a reliable and trustworthy insurance provider.

     

Conclusion

The importance of choosing a good insurance company cannot be overstated. Make sure you compare and evaluate different insurance companies based on several factors like coverage, claim settlement ratios, customer service, financial stability, etc. By choosing the best insurance company, you can rest easy knowing that your family is in safe hands.
 

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