Given the Indian family setting, we prioritize our family members. Their safety and security are the most critical factors. Disaster might strike at any time in one's life today. It is our responsibility to keep our family safe and secure.
Many life insurance companies in India offer the best term insurance plans at highly inexpensive costs.
All of us should get life insurance, regardless of whether we are a purchasing member of the family, and it should be from a reputable and well-known life insurance business.
There are now 24 life insurance companies in India. The only government-owned company is the Life Insurance Corporation of India (LIC of India); the other 23 are sole proprietorships or joint ventures.
What is a Life Insurance?
In the unfortunate case of untimely death, life insurance is a contract between an individual and an insurance company. The latter commits to pay a sum assured (death benefit) to the insured's family.
In the event of no death, a sum promised known as the maturity benefit is paid out at the policy's maturity. Some insurance companies also provide critical illness coverage as an add-on. There are now 24 insurance companies in India that offer life insurance coverage.
Top 10 Life Insurance Companies in India
As I told you, there are 24 insurance companies in India at present but I am going to tell you about the top 10 companies that have better insurance plans with excellent claim settlement ratios.
1. Max Life Insurance
- Its claim settlement ratio is 99.35 per cent.
- CEO – Prashant Tripathi
- Founder – Analjit Singh
- Founded – 2001
Max Life Insurance Company was created in 2000 and is India's leading life insurance company. This life insurance company's primary goal is to provide appropriate financial strength to its subscribers.
Thus it offers a variety of life insurance policies, such as child insurance, long-term savings, protection, investment, and various other group solutions, among others.
Max Life's insurance policies are packed with advantages and critical features tailored to customers' needs.
2. Bharti Axa Life Insurance
- Its claim settlement ratio is 99.05 per cent.
- CEO – Sanjeev Srinivasan
- Founded – 2007
Bharti AXA Life is a life and general insurance company headquartered in Mumbai, Maharashtra.
It is a joint venture between Bharti Enterprises, an Indian conglomerate, and AXA, one of the leading financial and asset management firms. Its insurance policies cover a wide range of topics.
Customers can choose from various products, including traditional and investment plans and child plans to safeguard their children, to mention a few.
The Bharti Group (established in 1976) and the French international insurance giant Axa have merged to form Bharti Axa Life Insurance. It provides a diverse selection of life insurance plans to meet various needs.
- Protection plans
- Savings plans
- Investment plans
- Group plans
- Health plans
- Yoddha plans (for armed forces)
3. Life Insurance Corporation of India (LIC)
- Its claim settlement ratio is 98.62 per cent.
- Chairperson – M R Kumar
- Founder – Government of India
- Founded – 1956
One of India's best life insurance firms is the LIC Insurance Corporation Of India. ‘Life Insurance Corporation' is what it stands for.
It is the first and oldest life insurance company in the world. It also offers numerous career opportunities as a LIC agent.
The LIC Insurance Corporation of India offers life insurance coverage purchased offline.
Endowment plans, money back plans, term assurance plans, pension plans, children plans, group schemes, unique plans, unit-linked plans, and other products are sold by the LIC Insurance Corporation.
4. Exide Life Insurance
- Its claim settlement ratio is 98.54 per cent.
- CEO – Kshitij Jain
- Parent organization – HDFC Life Insurance and Exide industries
- Founded – 2001
This life insurance firm has a customer-centric strategy and currently serves over 15 lakh customers across the country.
They are headquartered in Bengaluru and have over 200 branches globally, with over 45,000 advisors to assist them.
Exide life insurance distributes its products through various network channels, including agency, bancassurance, corporate agency, agency, broking, and direct channels.
They offer a wide range of insurance policies, including savings, investment, protection, and retirement plans.
5. Kotak Life Insurance
- Its claim settlement ratio is 98.50 per cent.
- President – Sunil Sharma
- Founded – 2001
Kotak Mahindra Life Insurance Company Limited is an Indian private life insurance firm. In the year 2001, the company was established.
It serves 15 million clients and has 232 locations in 167 cities and towns across India, with 99,275 agents.
The organization offers numerous protection policies, savings and investment plans, child plans, and retirement plans under the umbrella.
- Rural plans
- Term plans
- Retirement, and
- Investment plans
Kotak Life Insurance's products are available at low premium rates to meet individual investment needs. Each insurance plan is tailored to give optimal safety and benefits while considering the demands of diverse social groups.
Individual agents, insurance agencies and offices, and individual and firm brokers for claim settlements and these goods are also available online through aggregators and the corporate website, all of which help expedite the sale of the company's products.
6. Bajaj Allianz Life Insurance
- Its claim settlement ratio is 98.48 per cent.
- CEO – Tarun Chugh
- Founded – 2001
Bajaj Allianz Company is ranked sixth among the top insurance companies in India from 2019 to 2020. IRDA has rated this organization as one of India's finest life insurance companies.
Bajaj Allianz is a joint venture between the Bajaj and the Allianz companies. Bajaj is an Indian enterprise, while Allianz is a German firm.
Life Goal by Bajaj Allianz Assure, a life goal-based investment plan (ULIP), allows people to plan perfect experiences without worrying about the future.
7. PNB MetLife Insurance
- Its claim settlement ratio is 98.17 per cent.
- Parent Organization – PNB and MetLife Organisation
- Founded – 2001
PNB Metlife India Insurance is one of India's most reputable life insurance providers. This life insurance company is a partnership between PNB and Metlife.
PNB stands for ‘Punjab National Bank' in its complete form.
PNB MetLife combines the financial power of MetLife, Inc., a major global life insurance company, with the integrity and trustworthiness of PNB, India's oldest and largest nationalized bank.
PNB MetLife is a strong and reputable insurance provider thanks to its extensive distribution network and MetLife's global insurance expertise and product portfolio.
Through its strong bank connections with PNB, JKB, KBL, and other bank partners, PNB MetLife has access to over 206 million consumers in 15,000 locations.
8. Tata AIA Life Insurance
- Its claim settlement ratio is 98.02 per cent.
- CEO – Naveen Tahilyani
- Founded – 2000
This life insurance company was founded by a joint venture between AIA Group Ltd and Tata Sons Pvt Ltd.
Tata AIA Life blends Tata's preeminent leadership position in India with AIA's position as the world's largest, independent listed pan-Asian life insurance firm, spanning 18 Asia Pacific markets.
One of the fastest-growing businesses in the Life Insurance sector, Tata AIA Life remained at No. 5 in terms of Individual Weighted New Business Premium.
Tata AIA has a customer-centric strategy and offers a variety of life insurance products to satisfy the demands of its policyholders in the future.
Wealth plans, savings plans, and protection plans are just a few of the vital insurance products they offer.
9. HDFC Life Insurance
- Its claim settlement ratio is 98.01 per cent.
- CEO – Vibha Padalkar
- Founded – 2000
HDFC Life Insurance Company is a joint venture between Standard Life Aberdeen PLC and Housing Development Finance Corporation Limited.
Its headquarters are in Mumbai, Maharashtra, where it commenced operations in 2000. Customers can choose from various life insurance products, including protection plans, pension plans, women's plans, child plans, health plans, etc.
This life insurance firm offers a variety of products tailored specifically for women and children. The policyholder can add additional riders to the insurance to improve the coverage.
Furthermore, the HDFC Life insurance business assures claim payout in one day, considering numerous restrictions and limitations to make the entire claim settlement process easier for the disadvantaged.
10. Canara Bank Life Insurance
- Its claim settlement ratio is 98.57 per cent.
- CEO – Anuj Mathur (MD & CEO)
- Founded – 2008
It has a well-diversified portfolio of insurance products and solutions tailored to the specific needs of society's various social and economic strata, backed by thorough research and deep knowledge of the local market and socio-economic conditions of the population provided by Canara Bank.
The company aims to provide consumers with comprehensive insurance solutions that include competitive products, affordable fees, and quick and efficient service.
Insurance plans that the company provides –
- Child Plans
- Retirement Plans
- Health Insurance Plans
- Saving Plans
- Term Plans
In India, How Do You Pick The Right Life Insurance Company?
Selecting an insurance plan that meets both an individual's insurance needs and financial constraints is critical.
However, one should not be swayed by inexpensive rates when purchasing an insurance plan; instead, one should conduct thorough research on the insurance business and determine their insurance needs before purchasing a life insurance policy.
There are many different life insurance companies to choose from. There are a few things to consider before deciding on one:
1. Claim Settlement Ratio
It shows how effective and trustworthy it is. It compares the number of claims settled during the financial year to the total number of shares.
This ratio can measure how active an insurance company is paying claims. The insurance industry's high claim settlement ratio reflects the company's dedication to claim payments.
It symbolizes the insurance company's commitment to its consumers.
2. Riders' Availability
Insurance for life Riders is extra benefits provided by an insurance company when purchasing life insurance policies. They are purchased as part of a plan, raising the premium and increasing life insurance coverage.
Always check to see whether the insurance company offers riders or if there is an opportunity to add riders to the policy.
The most common insurance riders are:
- Rider of Critical Illness
- Rider for Accidental Death Benefits
- Accident Rider
- & Premium Rider Waiver
With these optional additional riders available, a person can make better selections by selecting the most appropriate plan and rider.
3. The Company's Persistence Ratio
The company's persistency rate shows the number of policyholders who have renewed their life insurance policy with the same insurer.
The total number of policyholders who renewed their policies is calculated by dividing the number of policyholders who renewed their policies.
The company's persistency ratio reflects how satisfied customers are with their insurance provider.
4. Customer Care Services
It is a crucial consideration when acquiring an insurance policy. An individual should always choose an insurance company that offers excellent customer service.
Customers should remember that customer service is available 24 hours a day, seven days a week, to answer questions and provide advice when purchasing a life insurance policy.
5. Comments & Evaluations
In most cases, an applicant ignores the feedback and reviews an insurance firm receives from customers. Always read the company's comments/reviews and watch for any complaints or negative feedback.
This article should give the applicant an idea of which insurance company is better than others and whether or not they should choose that insurance company.