Term Insurance Companies
- Best Term Insurance Companies in India
- Offerings by Term Insurance Companies
- How to Select the Best Company
Have you ever heard the phrase ‘Saving For the Rainy Day’, well this goes true with term insurance. The primary purpose of term insurance is to provide financial security to your family members against the loss of income that could arise due to your death. Term insurance is the simplest and purest form of life insurance, which provides a life cover for a specific period.
But, there is a catch to this. To buy an accurate term insurance policy you have to decide on the best term insurance company in India. There are approximately 24 term insurance companies in India to decide from. The criteria to do so can be narrowed down to a few specifications, such as solvency ratio (More than 1.5), claim settlement ratio (more the better, can go up to 99.99% to 100%), number of policies offered by the company, how quickly they settle claims, word of mouth and the reviews of the company on various online platforms.
We know you are here with many questions in your mind: When is the best time? Which is the best term insurance company in India? How will I know which term insurance plan is best for me? Let us answer these one by one for you.
As per IRDA's list of 2021-22, there are 24 companies that cater to term insurance plans in India. Below, we have mentioned some details of the same:-
| S.No | Company | Annual Premium for 2021-2022 (Rs. in crores) | Claim Settlement Ratio 2021-2022 | Solvency Ratio |
| 1 | Life Insurance Corporation of India | 428,024.97 | 98.74% | 1.79 |
| 2 | HDFC Life Insurance | 45,962.83 | 99.30% | 1.89 |
| 3 | SBI Life Insurance | 58,759.64 | 97.05% | 2.1 |
| 4 | ICICI Prudential | 37,457.99 | 97.90% | 2 |
| 5 | Max life | 22,414.17 | 99.51% | 2.04 |
| 6 | Bajaj Allianz | 16,127.05 | 99.04% | 6.14 |
| 7 | Kotak Mahindra | 13,015.11 | 98.82% | 2.64 |
| 8 | Aditya Birla Sunlife | 12,140.23 | 98.07% | 1.88 |
| 9 | Tata AIA | 14,445.03 | 99.01% | 1.89 |
| 10 | India First | 5,186.56 | 96.92% | 1.65 |
| 11 | PNB Met life | 7,348.26 | 97.33% | 1.87 |
| 12 | Canara HSBC OBC | 5,889.92 | 98.44% | 2.79 |
| 13 | Reliance Nippon | 5,036.57 | 98.67% | 2.33 |
| 14 | Exide life | 3,767.96 | 99.09% | 2.11 |
| 15 | Bharti AXA | 2,601.56 | 99.09% | 1.72 |
| 16 | Star Union | 1926.00 | 95.96% | 2.0 |
| 17 | Future Generali | 1,433.54 | 96.15% | 1.67 |
| 18 | Shriram | 2,349.60 | 82.39% | 2.15 |
| 19 | Ageas Federal Life | 2207.00 | 98.65% | 2.15 |
| 20 | Pramerica life | 1,098.78 | 98.3% | 3.99 |
| 21 | Aviva | 1,268.15 | 98.39% | 2.14 |
| 22 | Aegon | 416.46 | 99.03% | 2.97 |
| 23 | Sahara | 61.44 | 97.08% | 8.77 |
| 24 | Edelweiss Tokio | 1,464.20 | 98.09% | 1.97 |
Brief introduction of Term Insurance Companies
In the following sections, we will briefly discuss the list of all 24 term insurance companies operating in India.
Aegon Life Insurance Company, one of the leading life insurance companies in India was founded in July 2008. and delivers world-class products. It was the first life insurance company to launch Online Term Insurance Plans in India. The company serves more than 3 lakh customers and was recently awarded as the “Digital Company of the Year-2020” at India Insurance Summit 2020. Aegon Life Insurance aims to deliver the best-suited insurance plans to its customers, and constantly looking to enhance the overall customer experience.
Know More About - Aegon Term Insurance
Aviva Life Insurance Company is a joint venture between Dabur Invest Corp, a UK based insurance group and Aviva Group one of India's oldest and most respected business houses. The company is recognized as one of the renowned players in the life insurance industry of India and serves around 33 million customers across 16 countries. It has a wide distribution network with a global presence in 16 Markets and a strong sales force. When it comes to term insurance, Aviva provides customized products to cater to the different needs of customers.
Know More About - Aviva Term Insurance
Aditya Birla Sun Life Insurance is one of the most trusted life insurers in India. It is a joint venture between the Aditya Birla Group and Sun Life Financial Inc. With several years of experience in the insurance sector, the company has contributed tremendously to the growth and development of the Indian life insurance industry. The company offers innovative products and services to cater to the different needs of insurance and wealth management of customers.
Know More About - Aditya Birla Sun Life Term Insurance
Bajaj Allianz Life Insurance Company Limited, established in the year 2001, is a joint venture between Bajaj Finserv Limited (ownership of Bajaj Group, India) and Allianz SE. It offers comprehensive life insurance solutions and its term insurance plan is one of its most demanded products. The company operates a wide network across the country through its 511 branches, 80,000+ agents, a comprehensive set of trusted partners and online sales channel. Recently, this company also won the 'Most Innovative Best Practice in Customer Experience' award at the CII DX Summit & Awards 2020.
Know More About - Bajaj Allianz Term Insurance
Bharti AXA Life Insurance is a well-known insurer, which has been serving Indian customers with innovative and affordable insurance products since 2008. The company was formed through the amalgamation of two great visionaries- Bharti that holds a 51% stake and AXA that holds 49% stake of the company. It offers an affordable yet effective list of term insurance plans, which are designed by keeping the growing needs of customers in mind. This company operates a pan India network and has 263 branches located at different cities across the country.
Know More About - Bharti Axa Term Insurance
Canara HSBC Oriental Insurance is one of the finest insurance companies in India. The company was established in 2008. It is a joint venture between Canara Bank, HSBC Insurance Holdings Limited and Punjab National Bank. To provide ease to customers, the company has a pan India presence. The company offers a wide range of insurance products including online insurance plans, term insurance plans, savings plans, retirement solutions, child insurance plans and health insurance.
Know More About - Canara HSBC Term Insurance
Edelweiss is a renowned life insurance company, which aims to protect people's dreams and aspirations. The company is a joint venture between Tokio Marine Holdings & Edelweiss Financial Service Limited. It operates a pan India network with 116 branches and 55,749 agents. This company adopts a customer centric approach and holds a bunch of great plans to help fulfill customer's dreams and mitigate the hindrances.
Know More About - Edelweiss Tokio Term Insurance
Exide Life Insurance Company is an established and profitable player in India's life insurance industry. The company was founded in 2001 and headquartered in Bengaluru. It is a 100% owned subsidiary of Exide Industries Limited. The company operates around 200 offices across the country and owns multiple channels to distribute its products on a wide level. It offers long term protection along with creative savings and wealth solutions.
Know More About - Exide Life Term Insurance
Future Generali Life Insurance is a joint venture between Future Group, Generali Group, and Industrial Investment Trust Limited (IITL). The vision of the company is to actively protect and enhance peoples' lives. With a presence in more than 136 locations across India, Future Generali offers a wide range of effective insurance plans and solutions. The company was recently awarded for Excellence in Strategy Planning at the 2nd edition of Chief Strategy Officer Summit & Awards 2020.
Know More About - Future Generali Life Term Insurance
HDFC Life insurance is one of the strongest life insurance players in the Indian market. It is a joint venture between HDFC Ltd and Standard Life Aberdeen. The company was founded in 2000 and since then, the company has been a proud insurance solutions provider. The company offers a wider range of individual and group insurance solutions. To offer complete protection to your family, HDFC holds the finest term insurance solutions.
Know More About - HDFC Term Insurance
ICICI Prudential Life insurance is one of the popular life insurance players in the industry. ICICI Bank Limited and Prudential Corporation Holdings Limited joined hands to establish ICICI Prudential Life Insurance Company. The company was founded in 2001 and has consistently been amongst the top players in India. To deal with different life stage requirements, the company offers a wide suite of savings and protection plans.
Know More About - ICICI Term Insurance
IDBI, a renowned life insurance company in India, is a joint venture between Federal Bank (India's premier development and commercial bank), and Ageas (multinational insurance in Europe). Since its inauguration, the company has grown with great passion and innovation. To secure your loved ones, the company offers a wide range of term insurance plans at affordable prices.
Know More About - IDBI Federal Term Life Insurance
IndiaFirst Life Insurance Company was founded in 2009 and since then, it keeps on serving customers with a passion. It is the youngest life insurance company formed after the collaboration between Bank of Baroda, Andhra Bank, and the UK's investment brand (Legal & General group).
Know More About - IndiaFirst Term Insurance
Kotak Mahindra Life Insurance is one of the fastest-growing life insurance companies in India. It is a strong player, which offers a wide range of affordable yet effective life insurance plans. With the help of expert teams, Kotak Life Insurance ensures to deliver exactly what it promises. The company aims to become the best life insurance company in India.
Know More About - Kotak Term Insurance
Life Insurance Corporation is one of the oldest and largest life insurance companies in India. It is an Indian state-owned insurance group and investment company, headquartered in Mumbai. The company has crossed many milestones and has set unprecedented performance records. It offers multiple life insurance products to deal with the growing stages of life. As per the data fetched by IRDAI, LIC earned the highest annual premium in 2021-22 in comparison to all other life insurance companies in India.
Know More About - Life Insurance Corporation of India
Max Life Insurance Company is a popular private life insurance company. It is a joint venture between Mitsui Sumitomo Insurance Company Limited & Max India Limited. It has a pan India presence with around 269 offices. The company offers a wide range of specially created, curated, and customized insurance plans for your family's specific requirements. It aims to be the most admired life insurance company in India. The company was awarded with the award for 'Excellence in claim service' by CMO Asia Awards.
Know More About - Max Life Term Insurance
PNB Metlife Life Insurance Company was established in 2001. It is a joint venture between Jammu and Kashmir Bank Limited, Punjab National Bank Limited, M.Pallonji and Company Private Limited, and other private investors. The company has offices in 107 locations across the country and offers a wide range of life insurance products including 16 Savings Products, 13 Protection Products, 5 pension products, and 8 optional riders.
Know More About - PNB Metlife Term Insurance
Reliance Nippon Life Insurance Company is one of the leading private sector life insurance companies in India. The company has been rated amongst the top 3 Most Trusted Life Insurance Service Brands by Brand Equity's Most Trusted Brands Survey 2018. Reliance Life carries multiple years of experience and has a huge variety of life insurance plans that include tailormade plans as well.
Know More About - Reliance Term Insurance
SBI Life Insurance Company Limited (a renowned name in the life insurance industry) is a joint venture between BNP Paribas Cardif & State Bank of India. The company was founded in 2001 and has emerged out as one of the most trusted companies, providing a complete range of life insurance and pension products to cater the needs of individuals as well as group customers. This company operates an extensive presence across the country through its 947 offices, 28,000+ partner branches, 111 brokers, 169,006 individual agents and 57 corporate agents.
Know More About - SBI Term Insurance
TATA AIA Life Insurance is a joint venture between AIA Group Ltd. (AIA) & Tata Sons Pvt. Ltd. To assist customers in the long run, it has come out with multiple investment options. It provides plans for every stage of life and is always ready to offer the needful assistance in the hour of need. It aims to become the pre-eminent protection provider, enabling dreams, and inspiring healthier lives.
Know More About - Tata AIA Term Insurance
Pramerica Life Insurance Limited erstwhile DHFL Pramerica Life Insurance Company Limited, headquartered in Gurugram provide a wide range of life insurance solutions for individuals as well as groups
Know More About - Pramerica Term Insurance
Sahara India Life Insurance company is the first wholly-owned Indian company, without any foreign collaboration to enter the Indian Life insurance market. The company started operations on 6th February 2004 after receiving licence by India's insurance regulator – the IRDAI. It aims at delivering the best insurance solutions to Indian customers.
Shriram Life Insurance Company was founded in the year 2005 and commenced its operations in the year 2006. The company offers a variety of life insurance plans and solutions which are designed to cater to the needs of wider demography. It has a network of over 455 offices across India. This company also won the gold award for customer service handling- Claims, during the 8th Excellence Competition on Best Practice Sharing Fest conducted by Confederation Of Indian Industry.
Founded in 2009, Star Union Dai-Ichi Life Insurance is a joint venture between Bank of India, Union Bank of India, and Dai-Ichi Life Holdings. The company has a robust collective network of over 15,000 bank branches and a large distribution system that caters to the needs of more than 64 million customers across India. It offers a variety of insurance products that are designed to serve the unique type of needs of the customers.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
| Factor | Why Is It Important |
| Claim Settlement Ratio | The most important parameter to look for. The more the better. It can go up to 99.9 to 100 percent. It signifies that the insurer settles claims quickly. It denotes the percentage of claims settled in a year out of the received claims. |
| Solvency Ratio | It should be more than 1.5 for a given year. It signifies that the insurer has adequate resources to handle any potential claims, especially those that require urgent settlement. It denotes an insurance company's assets to its liabilities |
| Product Portfolio | A vast product portfolio signifies that the insurer has options for its customers. Everyone gets a compatible plan. This denotes that there are affordable and expensive options. |
| Cost of Premiums | Look at the companies with no hidden costs. The cost of premiums should be justifiable with the coverage and sum assured. Term insurance premiums are generally on the affordable side. |
| Application Process | Look for a plan that has a simple application process. Term insurance companies offer many online plans as well. |
| Online Reviews | Read online reviews of the term insurance company you are interested in. Look for customer feedback. Scroll down to the 5th and 6th page of Google reviews and check what services the company lacks at. |
| Customer Support | Get in touch with people who have a term plan and ask for their experience on the customer services of different term insurance companies. Get help by word of mouth to understand which company offers maximum support to its customers. You will get an idea at the time of purchase as well. Use the free look period if you are not satisfied with the assistance the company gives. |
If you are going through any of the following circumstances consider buying term insurance:
| Circumstances | What We Must Do | The Reason: Why |
| If you have the financial burden : Spouse Dependent Child Dependent Parents | Buy a term insurance with riders (if in a risky occupation). | In case of your sudden demise, the family members will get the death benefit that will reduce their financial stress. |
| If you have liabilities: Loans Mortgage Loan Vehicle Loan | Purchase a term insurance with a death benefit or loan-paying facility. | In case of an unfortunate event during the policy term, your family receives a lump sum amount to pay back the loan. |
| Salaried Individual | Buy a term insurance plan with a regular premium-paying facility. | You can pay for the premiums periodically. By doing this you can even buy a higher coverage plan without realizing the burden of premiums. |
| Self-employed Individual | Buy a plan with a single premium-paying facility | Paying the premium all at once reduces the risk of missing payments due to low cash flow |
| If you are less than 45 years old and unable to decide the best term insurance plan for yourself. | You can purchase term insurance that has coverage of up to 20 times of annual income. | At this point in time, the individual has a lot of responsibilities such as family, and loans, so it is best to buy a plan with higher coverage. |
| If you are more than 55 years old and unable to decide the best term insurance plan for yourself. | You can purchase term insurance that has coverage of up to 15 times of annual income. | Typically, your responsibilities are reduced by this point, allowing you to opt for a plan with lower coverage. |
| If you are unable to decide the best term insurance for you | Check the claim settlement ratio for the company or public reviews. | A good claim settlement ratio shows how responsive is a company in settling the claim. |
Quiet often, when you think about buying the best term plans for your family and visit insurance company websites you may have noticed the pop up that says calculate your premium. It is often tricky and confusing to understand the purpose and how it will help us.
The term insurance premium calculator is an online tool that helps you calculate the premium that you need to pay monthly and accordingly you will get to know the sum assured amount after you insert your necessary details like age, income, name, etc. There are multiple benefits of this premium calculator, such as
Choose Term Insurance Coverage of Your Choice
In life when you see you have dependents, financial goals or any loan/liability go for a term insurance plan. It is best to purchase a plan at an early stage of life preferably below 30 years or as soon as you start earning. By doing this you will have to pay a lower premium and get high coverage.
The term insurance market is flooded with companies and plans, there are many plans with lucrative offers and discounts, but this doesn't alone decide the best plan. The data such as claim settlement ratio(CSR) and public review also matter. CSR shows the willingness of the particular company to settle the claim and if it's more than 95% it is best for you. This means the company will promptly settle your claims in case of any mishappening. Public reviews help us to know the performance of the plan in real time.
Buying insurance is a crucial decision. To make sure that you follow the right steps to make the investment decision, the team at PolicyX is available to serve you. We will help you compare quotes from different insurers and select the best plan for you and your family within the span of a few minutes. Our experts will guide you throughout the buying process and provide you with all the essential desired information.
According to the claim settlement ratio for the financial year, 2021-22 in IRDA reports these are the companies considered to be the best for Term Insurance:
Below are the top 10 Term Insurance companies in india:
Keep these factors in mind before choosing a term insurance company:
Most insurance companies are now offering policies that cover COVID-19. They have included this disease among those they are covering, according to IRDAI mandates.
As per the time limits set by the Insurance Regulatory and Development Authority (IRDA) of India, insurers should settle death claim within 30 days.
Term plan portability is a concept in which the insurer (including family cover) is guaranteed the right to transfer the insured’s debt in terms of existing conditions to another insurance provider, provided the previous policy is retained without leave. Portability, however, is only possible for products with a time limit between premium receipt and benefit payments.
After submitting all the necessary information and documents to your insurer you can be assured that an insurer will settle your claim with a TAT of 48 hours. As per IRDA regulations, an insurer can take no longer than 30 days to settle a claim.
Yes, it's crucial to select a term insurance company with a wide network of hospitals that accept the policy. It ensures that customers can access quality healthcare services when required, without any financial burden.
No, premiums are just one of the factors to consider. Other factors like claim settlement ratio, policy features, customer support, and network of hospitals are equally important.
Yes, you can switch to a different term insurance company if you're not satisfied with your current insurer. However, it's essential to understand the terms and conditions of your current policy and any penalties or charges associated with switching.
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Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.
