10 Best Life Insurance Companies In India
10 Best Life Insurance Companies In India

Life insurance is a contract between a policyholder and an insurer, wherein the company pays the benefits after a set period or upon the demise of the individual in exchange for a premium. Opting for a life insurance cover can protect the policyholder's family from financial strain in case of an unfortunate event, like when the individual passes away.

If you are talking about life insurance, the basic idea of the product is that in case you pass away, the insurance company you buy the life insurance policy from will pay your family a fat sum of money. However, this is not the only benefit that comes with a life insurance policy in India.

Types of Popular Life Insurance Riders in India

Life insurance companies offer additional riders to supplement your insurance plan. These offer benefits over and above the life cover included in your policy. Opt for riders only if it suits your unique requirements. It is neither wise to be under-insured, nor to be over-insured. Here are some of the useful riders that you may consider while buying a life insurance policy:

  • Critical Illness: This add-on rider covers illnesses that are usually not covered in life insurance plans. This offer covers medical expenditures related to illnesses such as cancer, heart attack, stroke, paralysis, kidney failure, etc. The treatment for such illnesses not only burns a hole in our pockets but is a cause of emotional turmoil as well. Therefore, being financially prepared for such exigencies is a wise move. Besides, it saves us from emotional stress to a great extent. The lump sum can be availed on the policyholder being diagnosed with any of these illnesses.
  • Accidental Death An Accidental Death rider keeps the policyholder’s family financially covered in case of his/her death. The additional lump sum offered to the beneficiary by such riders enables the family to meet long and short-term financial objectives like immediate family expenditures, outstanding debts of the policyholder (if any), child’s education and marriage, etc. Apart from being a stable source of income, it acts as emotional support and saves the family from an impending debt burden. Income Benefit Rider This rider assures the policyholder’s family of a reliable and steady source of income after his/her unforeseen death. This rider proves to be especially beneficial when the policyholder is the sole breadwinner of the family. This rider relieves the family from financial stress and instability, securing their lives.
  • Waiver of Premium: In situations when the policyholder is unable to pay premiums due to disability or death of the policyholder where the insured and policyholder are different, this rider prevents the life insurance policy from lapsing and ensures that the policyholder can avail of the pre-decided maturity benefits.
  • Partial and Permanent Disability: There is no guarantee of the kind of surprises that life throws on us, and surprises are not always good. Hence, it is best to be prepared for different eventualities, if it may arise. A partial or permanent disability rider serves as much-needed financial support for the policyholder and his/her family when there is a lack of a steady source of income due to the disability. Insurance companies usually offer 10% of the total sum assured on such riders. Since riders offer the aforementioned benefits, it is recommended that you purchase them if they meet your requirements. However, it is essential to do your research and make sure that you do not make any unnecessary purchases as you may end up spending money on something that you may never even use. Go through each of the riders and purchase them only if they provide the benefits that you will actually require at some point in time.

What are the top 10 best life insurance companies in India?

(Cheapest Quotes and Good Services)

1. Life Insurance Corporation of India

2. Max Life Insurance Co. Ltd.

3. HDFC Life Insurance Co. Ltd

4. ICICI Prudential Life Insurance Co. Ltd.

5. Aditya Birla SunLife Insurance Co. Ltd.

6. Kotak Mahindra Life Insurance Co. Ltd.

7. Pramerica Life Insurance Co. Ltd.

8. TATA AIA Life Insurance Co. Ltd.

9. Bajaj Allianz Life Insurance Co. Ltd.

10. SBI Life Insurance Co. Ltd.

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Top 10 Best Life Insurance Companies In India: Cheapest Quotes and Good Services

1. Life Insurance Corporation of India

Photo: startuptalky
Photo: startuptalky

Life Insurance Corporation of India (LIC) is one of the oldest state-owned insurance Companies in India. For the year 2017-18, the total individual death claims or claim settlement ratio of LIC was 98.04%. During the year 2017-18, the total premium collected by LIC stood at Rs. 318223.21 crore. During the year 2017-18, LIC a total linked premium of Rs. 889.75 crore. During the year 2017-18, the total non-linked premium collected by LIC stood at Rs. 317333.46 crore. For the year 2017-18, the total life insurance premium collected by Life Insurance Corporation of India stood at Rs. 318223.21 crore.

LIC offers a 15% discount and various other benefits at leading restaurants all over India. During the year 2017-18, LIC collected a totally new business premium of Rs. 134671.70 crore.

Established in 1956, one of the largest insurance companies of India is a state-owned insurance group and investment firm that offers a range of insurance products to its customers. Some of the common products that are offered by the company are life insurance plans, pension plans, child insurance plans, unit-linked plans, special plans, and group schemes. With a network of 2,048branches, the company has a huge number of employees operating in different cities and towns all over the country.

2. Max Life Insurance Co. Ltd.

Photo: wikipedia
Photo: wikipedia

Max Life Insurance Company founded in the year 2000 is the largest non-bank private sector insurance company in India. Max Life Insurance Company is a joint venture between Indian Max India Ltd, a multi-business Indian corporation, and Mitsui Sumitomo Insurance Company, a Japanese Insurance Company.

Max life insurance company is one of the fastest-growing insurance companies in India with assets under management of INR 90, 407 crores. The company has a customer base of more than 32 lakhs. With a strong online presence, a wide portfolio of products, multi-distribution channels, and offices across the country, Max Life Insurance Company provides high-quality customer services. Max Life has been receiving awards and recognitions consistently. With a high claim settlement ratio, Max Life has been awarded as ‘Claims Service Leader’ and ‘Excellence in Claims Service’ by CMO Asia Awards. Max Life Insurance allows you to select from multiple types of products being offered by them in the market.

3. HDFC Life Insurance Co. Ltd

Photo: indianmarketview
Photo: indianmarketview

HDFC Life insurance Company Ltd. was founded in the year 2000. This long-term life insurance provider offers both individual and group insurance policies. The insurance company has 421 branches and is present in around 980+ towns and cities in India. It even has its own liaison office in Dubai. It deals with a wide range of products such as Pension, Protection, HDFC Life Savings & Investment, Child, Women, and Health plans. In the financial year 2018-2019 alone, HDFC Life insured over 5.1 crores of lives and was awarded the Best Life Insurance Company at the BFSI Awards 2018.

There are several Life insurance plans available in the market but one must choose an Insurer & Insurance policy as per the needs & requirements. Therefore, it is crucial to compare different plans from different companies to make an informed and beneficial decision.

4. ICICI Prudential Life Insurance Co. Ltd.

Photo: policystar
Photo: policystar

ICICI Prudential began its operations in 2001 and since then, it has maintained the position of being a top player in the insurance market. The company operates on the core philosophy of customer-centricity and has developed and implemented several initiatives to provide affordable insurance solutions, quality services, better fund performance, and a hassle-free claim settlement experience to its customers. The insurance products offered by ICICI Prudential include term plans, ULIP plans, retirement plans, etc.

To offer comprehensive protection, the company offers a variety of insurance products to meet different requirements of customers including term insurance, health insurance, unit-linked plans, long-term savings, retirement, and protection plans.

5. Aditya Birla SunLife Insurance Co. Ltd.

Photo: business-standard
Photo: business-standard

Aditya Birla Sun Life Insurance Company Limited or ABSLI, formerly known as Birla Sun Life Insurance Co. Ltd. started its operations on January 17th, 2001 in India. The company is a joint venture between Aditya Birla Group, a sincere multinational enterprise with a global presence, and Sun Life Financial Inc., one of Canada's top financial service organizations. It is also currently ranked among the top seven companies in Individual Business (Individual FYP amended for 10% single premium) in India. ABSLI is among India's most trustworthy and foremost insurance organizations offering a range of products across the customer's lifecycle, including wealth protection plans, health plans, retirement and pension solutions, children's future plans, Unit-linked Insurance Plans (ULIPs), and traditional term plans.

Formerly known as Birla Sun Life Insurance Company, Aditya Birla Sun Life Insurance Company Limited (ABSLI) is currently ranked 7th in the Individual Business domain, in addition to being recognized as one of India's leading life insurance companies. It has been successful in establishing a huge customer base of 17 Lakh policyholders. The company offers a range of insurance products to the customers including child plans, wealth protection plans, retirement and pension solutions, health plans, traditional term plans, and unit-linked insurance plans.

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6. Kotak Mahindra Life Insurance Co. Ltd.

Photo: sugermint
Photo: sugermint

Kotak Life Insurance Company is one of the fastest-growing and top insurance companies in India with a base of 30 million + policyholders. Kotak Mahindra Bank is the parent company for Kotak Life Insurance. Kotak Life Insurance Company offers a diverse range of insurance products to every section of society with unique features. Currently, the company has 32+ products, 18 riders, 10 Unit Linked Investment Plans, and 9 group products to offer. Kotak Group has achieved many milestones in the financial services field and has been awarded and recognized consistently for its achievements.

Kotak Life Insurance offers several benefits such as protection, wealth creation, tax benefits, and more. The company offers several plans such as savings and investment plans, child plans, savings plans, and retirement plans.

7. Pramerica Life Insurance Co. Ltd.

Photo: investopedia
Photo: investopedia

Aegon Life Insurance Company was the first insurance provider in India to offer online term insurance plans. Currently, it operates through several branches across various cities in India and has successfully created a broad customer base with over 3 Lakh policyholders. The company offers a wide array of products to help the customers in meeting their long-term financial goals.

These products include term insurance plans, child plans, savings, and investment plans, endowment plans, pension plans, unit-linked insurance plans (ULIPs) as well as group solutions. Further, the company follows a Direct to Customer approach that focuses on creating a direct channel for dialogue between customers and their service team specialists.

8. TATA AIA Life Insurance Co. Ltd.

Photo: wishpolicy
Photo: wishpolicy

This life insurance company came into existence as a joint venture between AIA Group Ltd and Tata Sons Pvt Ltd. It is another popular life insurance company and was started in the year 2001. Tata AIA follows an entirely customer-centric approach and offers various life insurance plans to its policyholders in order to meet their future needs. Some of the main insurance products offered by them include wealth plans, savings plans, protection plans, etc.

Tata AIA Life Insurance Company’s assets under management in 2021 is INR 46,281 crores. Being one of the trusted insurance brands in India, Tata AIA Life offers numerous insurance solutions starting from protection to wealth creation. The policies provide simple solutions for unique insurance needs along with excellent customer service.

9. Bajaj Allianz Life Insurance Co. Ltd.

Photo: economictimes.indiatimes
Photo: economictimes.indiatimes

Bajaj Allianz Life Insurance Company founded in the year 2001 is a joint venture between Bajaj Finserv Limited of Bajaj Group. Bajaj Allianz Life has 759 branches across the country to offer innovative insurance solutions to various customer segments. Bajaj Allianz Life Insurance is known for its strong innovative products and timely customer service. The company has won various awards and recognition for its contribution to the insurance industry. Following are some of the awards received by Bajaj Allianz Life Insurance:

  • Bajaj Allianz Life has been recognized as the ‘Digital Marketer of the Year 2018’ in the insurance category
  • Bajaj Allianz won the ‘Customer Service Excellence Award’ at the NASSCOM BPM Strategy Summit 2018.
  • Bajaj Allianz Life ranked amongst the Top-75 Most Valuable Indian Brands
  • Bajaj Allianz Life has received Digital Technology Senate Awards 2021.
  • Bajaj Allianz Life has won the Red Hat APAC Innovations Award 2020.

Ranked amongst the Top 75 Most Valuable Indian Brands 2019, Bajaj Allianz is one of the leading Indian insurance providers. Read about Bajaj Allianz Life insurance plans and check out their policies by clicking below.

10. SBI Life Insurance Co. Ltd.

Photo: sugermint
Photo: sugermint

SBI Life Insurance Company is a joint venture between State Bank of India (SBI), India’s largest bank and BNP Paribas Cardif, a French multinational bank and financial services company. Currently, SBI Life Insurance has an authorized capital of INR 20 billion (USD 290 million). SBI Life was first started as a bancassurance business which is now extended to the multi-distribution channel. With customer service excellence and product innovations, the company has been growing year on year. SBI Life has received many awards and accolades for its work in the field. Following are some of them:

  • SBI Life has won the ‘Brand of the Year 2016-17’ award in the insurance category
  • SBI Life has won the ‘Private Sector Life Insurance Company of the Year’ award at the Fintelekt Insurance Awards
  • SBI Life has won ‘Bancassurance Leader, Life Insurance’ in the large companies category.
  • SBI Life has won ‘Insurer of the Year’ in 2020 by FICCI
  • SBI Life has won Best Covid Response-Towards Customers Towards Communities award at ASSOCHAM 13th Global E-Summit 2020.

SBI Life Insurance is one of the market leaders for life insurance policies in India. It offers different policies with several benefits for the policyholders.

How To Choose The Correct Life Insurance Company In India?

It is important to pick an insurance plan that fulfills an individual’s insurance requirements as well as fits in the budget. However, one should not be influenced by low premiums while buying the insurance plan he/she should thoroughly research the insurance company and must identify their insurance requirements before buying a life insurance plan.

There are a lot of life insurance companies to opt for here are some factors you should consider before choosing a particular insurance company:

1. Claim Settlement Ratio: The Claim Settlement Ratio or CSR of an insurance company depicts its effectiveness and reliability. The claim settlement ratio of an insurance company represents the number of claims settled in the financial year against the total number of claims. This ratio helps in finding out the activeness of an insurance company in terms of claim settlement. The high claim settlement ratio of the insurance company depicts the dedication of the insurance company in terms of claim settlement. This represents the loyalty of the insurance company towards its customers. An insurance company’s claim settlement ratio is reviewed by the Insurance Regulatory and Development Authority (IRDA).

2. Customer Care Service: Customer Care Service is an important factor to be considered while purchasing an insurance plan. A person should always choose an insurance company that provides good quality customer care service. While purchasing a life insurance policy, a customer should always keep in mind that there is the availability of 24x7 customer care service to resolve all of their queries and provide assistance when needed.

3. Availability of Riders: Life Insurance Riders are additional benefits that an insurance company offers at the time of purchasing the life insurance plans. They are purchased with the plan increasing the premium and they enhance the life cover as well. A person should always ensure the insurance company offers riders or offer an option to add riders to the insurance policy. Some of the common riders offered by the insurance companies are Critical Illness Rider, Accidental Death Benefit Rider, Accidental Total or Permanent Disability Rider, and Waiver of Premium Rider. With these optional additional riders being offered a person can make better decisions by choosing the best plan and rider offered with it.

4. Persistency Ratio of the Company: The persistency ratio of the company depicts the number of policyholders who have renewed their life insurance policy with the same insurance company. It is the ratio of the total number of policyholders to the number of policyholders who renewed their policies. The persistency ratio of the company represents the satisfaction of the consumers with the insurance provider. An insurance company’s persistency ratio is kept under observation by the Insurance Regulatory and Development Authority (IRDA).

5. Feedbacks and Reviews: Generally an applicant does not pay attention to the feedback and reviews that an insurance company receives from the consumers. One should always go through the feedback/reviews of the company and look out for the complaints/bad reviews. This should give the applicant an idea of which insurance company is better than others and if the insurance company should be opted for or not.

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