Life Insurance Companies in India
Buying life insurance policies, especially for your family, is one of the best decisions you can make. Insurance is crucial since it will protect your family in an accident or untimely death, allowing you to take care of your loved ones.
By doing this, a lump-sum cash benefit will be received, which the remaining family members can utilise to maintain a decent standard of living. The numerous life insurance companies in India make these insurance policies available, and any claims must be resolved.
However, selecting the best life insurance plan could be hectic to have a stress-free life. Therefore, you should carefully consider your preferences while choosing the best insurer.
What is a Life Insurance Company
A life insurance company is a business that creates various life insurance plans for its clients. Policyholders pay an insurance company a premium that is decided by the sum insured for the selected coverage, as well as other advantages and variables. A life insurance firm must also manage any claims filed by its consumers.
In India, many types of life insurance plans are offered. Let's take a closer look.
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Term Life Insurance
Term life insurance is a solid protection plan. The nominee receives the whole term insurance payment (sum assured) in the event of the insured person's death within the policy period.
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Whole Life Insurance
Whole life insurance plans give coverage up to your natural death. These life insurance policies, also known as straight life or regular life plans, can continue to offer you life insurance coverage until the age of 99.
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Endowment Plans
A life insurance policy called an endowment plan allows you to save money systematically. You can achieve various life goals by establishing a sizeable, risk-free fund through purchasing a savings plan or scheme. It helps to meet your short-term goals.
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Unit Linked Insurance Plans
A life insurance plan that combines life insurance security with the possibility of investment returns is known as ULIP. A percentage of your premium for ULIPs is used for life insurance, while the balance is placed in a shared fund of market-linked securities like debt, equity, or a combination of both.
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Money-Back Policy
A money-back policy returns money through consistent payouts over the policy term. At maturity, the life insured could receive a lump sum payment. A money-back policy aids in addressing the liquidity issue.
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Child Plan
A child insurance plan protects your child's future from financial limits by fusing insurance and savings. You, as a parent, want to make sure your child lives comfortably and has access to whatever they require to achieve their greatest potential.
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Retirement Plan
These specially created investment plans let you put money away until you retire so you may enjoy the benefits of your hard work. You regularly contribute a particular amount to a retirement plan starting when you purchase it.
Best Life Insurance Companies in India 2024
Based on a crucial claim settlement ratio, we've compiled a list of India's best life insurance companies. The greater the ratio, the better for the insurance company, as it indicates the company's trustworthiness.
| Company | Claim Settlement Ratio 2021-2022 |
Annual Premium for 2021-2022 (Rs. in crores) |
Solvency Ratio (March 2022) |
Equity Share Capital (As on March 31, 2022) |
|---|---|---|---|---|
| Max life | 99.34% | 22414.17 | 2.01 | 1918.91 |
| Bandhan | 99.03% | 416.46 | 3.33 | 1477.73 |
| Bharti AXA | 99.09% | 2601.56 | 1.62 | 3456.20 |
| Life Insurance Corporation of India | 98.74% | 428024.97 | 1.85 | 6325.00 |
| Pramerica life | 98.30% | 1098.78 | 4.04 | 374.06 |
| Exide life | 99.04% | 3767.96 | 2.17 | 1850.00 |
| Kotak Mahindra | 98.82% | 13015.11 | 2.73 | 510.29 |
| Reliance Nippon | 98.67% | 5036.57 | 2.35 | 1196.32 |
| Bajaj Allianz | 99.02% | 16127.05 | 5.81 | 150.71 |
| PNB Met life | 97.33% | 7348.26 | 2.09 | 2012.88 |
| Aditya Birla Sunlife | 98.07% | 12140.23 | 1.88 | 1901.21 |
| Tata AIA | 98.53% | 14445.03 | 1.96 | 1953.50 |
| HDFC Life Insurance | 98.66% | 45962.83 | 1.76 | 2112.62 |
| Aviva | 98.39% | 1268.15 | 1.82 | 2004.90 |
| ICICI Prudential | 97.82% | 35457.99 | 2.04 | 1435.97 |
| Sahara | 97.08% | 61.44 | 6.75 | 232.00 |
| Canara HSBC OBC | 98.44% | 5889.92 | 2.82 | 950.00 |
| Edelweiss Tokio | 98.09% | 1464.20 | 2.11 | 665.55 |
| India First | 96.92% | 5186.56 | 1.65 | 663.46 |
| Star Union | 97.42% | 4136.80 | 2.00 | 258.96 |
| Shriram | 82.39% | 2349.60 | 2.05 | 179.38 |
| IDBI Federal Ageas Federal Life | 97.03% | 2207.30 | 3.12 | 800.00 |
| Future Generali | 96.15% | 1433.54 | 1.83 | 2145.82 |
| SBI Life Insurance | 97.05% | 58759.64 | 2.05 | 1000.07 |
Disclaimer: The above data has been sourced from the Annual Report for the FY 2021-22 from IRDAI*
A Basic Overview of Life Insurance Companies in India
The list of life insurance companies functioning in India will be discussed briefly in the following parts.
Bandhan Life Insurance Co.Ltd
Bandhan Life Insurance Co.Ltd began operations in India in July 2008, intending to assist individuals in better planning their lives. Bandhan Life Insurance is a partnership between Bandhan and Bennett, Coleman & Company, India's largest media conglomerate.
| Year | Awards |
|---|---|
| 2018 | Digital Company of the year at India Insurance |
| 2019 | ET BFSI Award |
| 2020 | Indian Chamber of Commerce award for Digital insurer |
*Data has been sourced from the official website of the company.
Aviva Life Insurance Co. India Ltd
Aviva India Life Insurance is a partnership between Aviva PLC and Dabur Invest Corp, one of India's oldest and most reputable commercial conglomerates. With significant expansion, this organisation aspires to be one of India's premier insurers, providing superior products to its customers.
| Year | Awards |
|---|---|
| 2010 | The ‘Aviva Great Wall of Education’ won Gold at Spikes Asia 2010 in Singapore |
| 2014 | Aviva India won the ‘Certificate of Excellence at the PR Week Asia Awards 2014 in Hong Kong |
*Data has been sourced from the official website of the company.
Bajaj Allianz Life Insurance Co.Ltd
Bajaj Allianz Life Insurance Company Limited is an insurance company. The company provides term and child plans and retirement and health insurance services. Bajaj Allianz Life Insurance serves customers in India. Bajaj Allianz Life is the result of a collaboration between Bajaj Finserv Limited and Allianz SE.
| Year | Awards |
|---|---|
| 2021 | Insurer Of The Year - India |
| 2021 | Best Digital Customer Experience Initiative [Insurance]’ at the ET BFSI.com Excellence Awards 2021. |
*Data has been sourced from the official website of the company.
Bharti AXA Life Insurance Co.Ltd
Bharti AXA Life is a private life insurance company headquartered in Mumbai, Maharashtra. It is a collaboration between the Indian giant Bharti Enterprises and AXA.
| Year | Awards |
|---|---|
| 2021 | Mobile App of the Year - India in the Insurance Asia Awards |
| 2021 | General Insurance Company of the Year- BFSI Awards |
*Data has been sourced from the official website of the company.
Aditya Birla Sun Life Insurance Co.Ltd
Aditya Birla Sun Life Insurance Co.Ltd is a joint venture between the Aditya Birla Group, a well-known Indian conglomerate, and Sun Life Financial Inc. BSLIC provides customised programmes based on your specific needs.
| Year | Awards |
|---|---|
| 2020 | Best CSR Initiative Strategy Award - FICCI Insurance Industry Awards |
| 2019 | Domestic Life Insurer of the Year - Insurance Asia Awards |
| 2018 | Best Fraud Intelligence Company of the Year - Insurance India Summit and Awards |
*Data has been sourced from the official website of the company.
Canara HSBC Life Insurance Co.Ltd
Canara HSBC Oriental Bank of Commerce uses its extensive network to provide various life insurance products to match your specific needs. Oriental Bank of Commerce and Canara Bank have established a joint venture with HSBC Insurance (Asia-Pacific) Holdings Limited, a foreign insurance company.
| Year | Awards |
|---|---|
| 2020 | Best Life Insurance Company of the year 2020 (Large) by CMO Asia |
| 2019 | Asia's Most Trusted Company Award under Asia's most Trusted Life Insurance Company category from India region |
*Data has been sourced from the official website of the company.
Pramerica Life Insurance
Pramerica Life Insurance now only provides life insurance in India. It has teamed up with Prudential Financial to provide you with the term, variable, universal life insurance, and index. Pramerica Life Insurance is headquartered in Gurgaon, India.
| Year | Awards |
|---|---|
| 2018 | Digital Industry Awards - Kamikaze B2B Award |
| 2018 | Golden Star Award - CMO Asia |
*Data has been sourced from the official website of the company.
Edelweiss Tokio Life Insurance Co.Ltd
Edelweiss Tokio Life is a private insurance company that was founded in 2011. The firm is a collaboration between India's Edelweiss Group and Japan's Tokio Marine Holdings.
| Year | Awards |
|---|---|
| 2020 | Asia's Best Insurance Company Award - Digital Sales |
| 2016 | Best Life Insurer - Outlook Money Awards |
*Data has been sourced from the official website of the company.
Exide Life Insurance Co. Ltd
Exide Life Insurance Firm Limited, founded in 2001-02, is a well-established and lucrative life insurance company. Bengaluru is the headquarters of the company.
| Year | Awards |
|---|---|
| 2020 | ET Best Brands Under BFSI category |
| 2018 | Digital Insurer of the Year 2018 (India) - Insurance Asia News Awards |
*Data has been sourced from the official website of the company.
Future Generali India Life Insurance Co.Ltd
FGILI is a joint venture between two influential groups: Generali Business, a worldwide insurance group, and Future Group, an Indian retailer. Future Generali India Life Insurance aims to provide its customers with various life insurance options that will assist them in managing and meeting their financial needs.
| Year | Awards |
|---|---|
| 2020 | Golden Peacock National Training Award |
| 2018 | IT Innovation and Excellence Award |
*Data has been sourced from the official website of the company.
HDFC Standard Life Insurance Co.Ltd
HDFC Life Insurance offers a variety of individual and group insurance options to suit clients' needs at different stages of their lives. Protection, Pension, Savings & Investments, Health, and other goods are among them.
| Year | Awards |
|---|---|
| 2020 | The Change Maker Award |
| 2019 | ICAI Award |
*Data has been sourced from the official website of the company.
ICICI Prudential Life Insurance
Prudential and ICICI Bank Ltd., India's largest private sector bank, joined together to create ICICI Prudential Life Insurance Company. After gaining clearance from the Insurance Regulatory Development Authority of India, ICICI Prudential Life was among the first private sector life insurance firms to start operations in December 2000.
| Year | Awards |
|---|---|
| 2020 | Best Alternative or Digital Payments Program of the Year - Customer Fest Leadership Awards |
| 2020 | Claims & Customer Service Excellence Awards Under Life Insurance by FICCI |
*Data has been sourced from the official website of the company.
Ageas Federal Life Insurance Co.Ltd
Ageas Federal Life Insurance Co.Ltd is a renowned insurance provider in India that meets the unique demands of its clients by offering a wide range of insurance solutions that are readily customisable to suit individual needs.
| Year | Awards |
|---|---|
| 2020 | India’s Top 3 Best Workplaces in the Insurance sector - Great Place to Work |
| 2018 | Top 10 Most Trusted Life Insurance Brands in India - ET Brand Equity Award |
*Data has been sourced from the official website of the company.
IndiaFirst Life Insurance Co.Ltd,
The India First Life Insurance Company, was founded in 2009, and Mumbai serves as its corporate headquarters. Depending on your financial needs, you may choose from a wide range of insurance products, including pension plans, term plans, and more.
| Year | Awards |
|---|---|
| 2021 | The Economic Time’s Best Brands |
| 2019 | Customer Excellence In Insurance Sector |
*Data has been sourced from the official website of the company.
Kotak Mahindra Life Insurance Ltd
Private life insurance firm Kotak Life Insurance is a wholly-owned subsidiary of Kotak Mahindra Bank Limited based in India. Over 20 million people are covered by Kotak Life Insurance.
*Data has been sourced from the official website of the company.
Life Insurance Corporation of India
The Life Insurance Corporation of India (LIC) is the country's most comprehensive government-owned life insurance and investment corporation. The primary function of LIC is to invest in global financial markets and various government assets after collecting money from individuals via their various life insurance policies.
| Year | Awards |
|---|---|
| 2020-21 | Economic Times BFSI Award-Best Brand |
| 2020-21 | ACEF Award |
*Data has been sourced from the official website of the company.
Max Life Insurance Co.Ltd
Max Life Insurance Co.Ltd provides various insurance solutions, ranging from protection plans to products that provide protection and savings. Max Life Insurance provides a range of plans and policies to fulfil the financial needs of a large client base.
| Year | Awards |
|---|---|
| 2022 | India's Most Trusted brand by WCRCInt |
| 2020 | Gold Award for Life Insurance Provider of the Year - Outlook Money Awards |
*Data has been sourced from the official website of the company.
PNB MetLife India Insurance Co.Ltd
PNB MetLife combines the financial power of MetLife, Inc., with the integrity of PNB, one of India's oldest and largest nationalised banks. PNB MetLife Insurance is a powerful and reputable insurance provider due to its extensive distribution reach and MetLife's worldwide insurance experience and product portfolio.
| Year | Awards |
|---|---|
| 2020 | Best Brand by Economic Times |
| 2019 | Best in Diversity and Inclusion by People Matters Awards |
*Data has been sourced from the official website of the company.
Reliance Nippon Life Insurance Co.Ltd
Reliance Nippon Life Insurance Company makes it very simple to discover the policy that precisely satisfies your requirements thanks to its extensive portfolio, which includes a selection of life insurance products that cater to the financial demands of a diversified client base.
| Year | Awards |
|---|---|
| 2022 | Best Claim Settlement Record - InsureNext Summit & Awards |
| 2021 | Best Digital Customer Experience Award |
*Data has been sourced from the official website of the company.
Sahara India Life Insurance Co.Ltd
The Sahara Group's Sahara India Life Insurance Company Ltd. is a wholly-owned subsidiary. The Insurance division began operations in 2004 and is present across most of the nation.
*Data has been sourced from the official website of the company.
SBI Life Insurance Co.Ltd
SBI Life Insurance, is based in India. The company provides a huge selection of services. Through various CSR initiatives in 2021–2022, the company directly impacted nearly 2 lakh people.
| Year | Awards |
|---|---|
| 2021 | Best Risk Management Practices at InsureNext Awards |
| 2021 | Gold Honour at Digixx Awards |
*Data has been sourced from the official website of the company.
Shriram Life Insurance Co.Ltd
A well-known insurance provider in India, Shriram Life Insurance Company offers a variety of products that you may choose based on your needs, including straightforward protection plans, savings and protection combined plans, and more.
| Year | Awards |
|---|---|
| 2022 | Best Digital Initiative Under Life Insurance - InsureNext Awards |
| 2019 | Recognition for Active Customer Engagement |
*Data has been sourced from the official website of the company.
Star Union Dai-Ichi Life Insurance Co.Ltd
Star Union Dai-ichi Life Insurance (SUD Life), established in 2009, is a joint venture between Dai-ichi Life Holdings, a primary life insurance provider in Japan, and Bank of India, Union Bank of India, two of India's top public sector banks.
| Year | Awards |
|---|---|
| 2020 | APAC Gartner Innivation Awards |
| 2017 | Claims Service Leader Award |
*Data has been sourced from the official website of the company.
Tata AIA Life Insurance Co.Ltd
Tata AIA Life Insurance Co.Ltd is one of the most well-known insurance providers, offering a wide selection of insurance products, including protection plans, asset management plans, and savings plans.
| Year | Awards |
|---|---|
| 2019 | India Insurance Summit & Awards – InsureTech Company of the Year |
| 2019 | Aon Best Employer Award |
*Data has been sourced from the official website of the company.
How to Choose the Best Life Insurance Company in India?
India's best life insurance company must be chosen to get the best life insurance plan. Here are a few things to remember to check before buying it.
Comparison
The insurance plans, features provided, and rates vary from one life insurance company to the next. This is because each insurer has different requirements for your coverage, age, sum assured, and plan type. The easiest way of comparison is online. Buying life insurance online is now simple and quite convenient.
Claim Settlement Ratio
The capacity of the insurance company to resolve your claims is measured by the claim settlement ratio. Purchasing life insurance from an insurer with a problematic claim history is not a good idea. Check the claims made throughout a financial year to see if they were satisfied or not, as well as the length of time it took to pay them off.
Scan your Needs
Your family will be financially supported after your death by a life insurance policy. Therefore, you must consider your family's dependents, outstanding debt, investments, and income sources, among other things.
Riders
Different insurance companies offer add-on riders facility. Make careful only to purchase riders if they meet your needs. If you choose to purchase riders not included in your basic life insurance policy, you will be required to pay an additional premium.
Buying Process of Life Insurance Online
There are different ways to buy life insurance, but the most excellent way is online. Buying life insurance online has changed the game. Here are the indicative steps.
- Click on the official website.
- Scroll down and select the "Life" category.
- Fill in all the relevant details like gender, DOB, etc.
- The next page will show you the various insurers' Life Insurance policies in India.
- You can select one of the plans and proceed with the payment.
- Once the payment is made, the policy document will be sent to your registered email address.
How Much Life Insurance Cover do I Need?
When purchasing a life insurance policy, it is critical to select the appropriate level of coverage so that your family is provided with adequate income in your absence. As a result, selecting the appropriate sum insured is essential. A variety of factors influence coverage selection, including -
- Lifestyle Expenses
- Existing value of investments
- Dependents
- Financial Goals
- Existing assets and liabilities
When purchasing a life insurance policy, it is critical to select the appropriate level of coverage so that your family is provided with adequate income in your absence. As a result, selecting the appropriate sum insured is essential. A variety of factors influence coverage selection, including -
There are various formulas that might assist you to determine the sum assured that you should use. The following are some of the most regularly utilised procedures:
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Thumb Rule
You should use the most simple way of computing the sum promised. Your sum assured should be at least 10 to 12 times your annual revenue, according to this criterion. So, if you earn INR 10 lakhs per year, your total promised should be between INR 1 crore and INR 1.20 crores. This strategy is simply because it does not account for inflation or potential increases in your future earnings.
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Underwriter’s Thumb Rule
The underwriters' thumb rule is a more complex variant of the thumb rule in which the multiple is determined by your age and annual salary. According to this rule, insurance eligibility diminishes with age, and so the multiplier lowers with age. If you are between the ages of 20 and 30, you can obtain coverage equal to 15 times your annual salary under this regulation. You can get 14 times your annual salary if you're between the ages of 31 and 40, 12 if you're between the ages of 41 and 45, and so on.
All of these approaches provide the coverage you need, but they do not take into account your current assets and liabilities. It is better if you consider such assets and liabilities when determining the coverage needed. Coverage calculators are available from life insurance providers that compute the sum assured that you should choose. You may easily use these calculators to determine your coverage needs.
Factors Affecting Life Insurance Policy premiums?
Premium is what you will pay to the insurance company but, there are a lot of factors that come into play such as.
- If a person is overweight or obese, he or she will be obliged to pay a higher premium for his or her life insurance policy.
- If a person smokes, the risk grows, and he or she will be needed to pay additional premiums towards the life insurance policy.
- If a person is involved in a high-risk activity, such as race car driving, life insurance companies are often dubious of such occupations. As a result, the premiums are hefty.
- If a person is a heavy drinker, he or she will be compelled to pay additional rates.
