Top 10 Life Insurance Companies in India

Important Considerations Before Selecting a Life Insurance Company in India

Choosing the right life insurance company in India is a crucial decision that requires careful consideration of several factors. The insurance provider you choose will play a significant role in safeguarding your and your family's financial future, especially in a country without a social security blanket. To make an informed choice, here are the key factors to consider:

1. Need-based Investment: Determine your life cover requirements based on your annual income, existing medical conditions, and mortgages. As a general rule, your life cover should be around ten times your annual income to ensure your family's financial stability if something were to happen to you. Consider your specific needs and create a well-balanced financial plan accordingly.
2. Service Quality: The level of service provided by the insurance company is a crucial consideration. Evaluate how the company treats customers, addresses their queries, and offers support either over the phone or in person. Assess the company's approach and patience in understanding your financial needs before making any recommendations.  
3. Price: While you cannot put a price on life, it is essential to compare rates and associated charges of different insurance policies. Use online platforms or web aggregators to easily compare offerings from various insurance companies. Ensure that the insurance provider you choose aligns with your financial strategy and fits within your budget.
4. Reviews and Ratings: Ratings and reviews of insurance companies can provide valuable insights into their overall performance and customer satisfaction. While some reviews may be fake or biased, look for patterns in customer feedback. Consistent complaints of a similar nature could be an indicator of potential issues with client satisfaction.
5. Solvency Margins: Understanding the reputation and fiscal strength of the insurance company's promoters is essential. This helps you gauge how prudently they manage policyholders' funds and fulfill their commitments. The solvency margin, a metric used to assess a company's ability to meet financial obligations, is crucial in determining the insurer's fiscal viability. A higher solvency margin indicates greater competence in settling claims.
6. Claims Settlement Ratio (CSR): The CSR is a critical factor in evaluating the customer-friendliness of life insurance companies. It represents the percentage of claims settled by an insurance company against the total claims received annually. A higher CSR indicates that the company efficiently resolves claims, providing greater peace of mind for policyholders.

Top 10 Life Insurance Companies in India

Below is an overview of some of the best life insurance companies in India:

1. LIC Life Insurance:

1. LIC is one of the largest insurance companies in India established in 1956 that offers a wide range of insurance products.

1. LIC stands out in terms of Claim Settlement Ratio (CSR), Amount Settlement Ratio (ASR), and complaint volume, despite a slightly higher complaint volume due to its large business average.

1.  Some of the Term Insurance Policies:

o   Saral Jeevan Bima: A basic term plan with a maximum sum assured of ₹25 lakhs, offering death benefits and an in-built Accidental Death Benefit. No riders available.

o   Jeevan Kiran: Offers a minimum sum assured of ₹15 lakhs with coverage based on eligibility. Provides maturity benefits, death benefits, and return of premiums. Riders include Accidental Death and Disability Benefit and Accident Benefit.

o   New Tech Term: An online plan with level and increasing sum assured options. Includes only the Accident Benefit Rider. May be pricier compared to similar plans.

o   New Jeevan Amar: The offline version of New Tech Term, offering the same features, riders, and coverage.

Despite strong metrics, LIC lags in creating comprehensive and affordable term insurance plans. As a public-owned insurer, it faces issues with speed and efficiency in claim settlement, yet its size and credibility make it a leading choice among life insurers.

2. Max Life Insurance:

1. Max Life Insurance is a joint venture of Mitsui Sumitomo Insurance Company and Max Financial Services Limited, established in 2000.

1. This insurance company offers a comprehensive range of savings, long-term, and retirement policies with its multi-channel distribution and high service providing agencies.
2. Max Life Insurance excels based on Claim Settlement Ratio (CSR), Amount Settlement Ratio (ASR), and complaint volume data over the last three years.

1. Its strong client base and extensive insurance history further affirm its credibility.

1. Some of its best term insurance policies are:

o   Smart Term Plan: Offers seven variants - Life Cover, Income Protector, Income + Inflation Protector, Life Cover + Income, Life Cover + Increasing Income, Increasing Cover, and Reducing Cover. Features various riders like Lumpsum on death, Monthly Income Perk, Accelerated Critical Illness + Life Stage Benefit, Accident Cover, and Return of Premiums.

o   Max Life Online Term Plan Plus: A basic term policy with Life Stage Benefits and Accelerated Critical Illness. Offers three death benefit options - Sum assured, Sum assured plus level monthly income, and Sum Assured plus Increasing Monthly Income. Includes riders like accident death benefit, waiver of premium plus, and critical illness and disability rider.

o   Max Life Smart Secure Plus Plan: Comprehensive and affordable term plan with features like terminal illness perk, critical rider (three variants), voluntary top-up sum assured, Joint life cover option, Premium Break option, Waiver of Premium Plus, and Disability Rider.

1.  Max Life Insurance stands out for its impressive metrics and affordable, comprehensive term insurance plans, making it one of the best insurers in India.

3. Aditya Birla Sun Life Insurance Co. Ltd.:

1. A joint venture of Aditya Birla Group and Sun Life Insurance, Aditya Birla Sun Life Insurance Company Limited, started its operation in January 2001.
2.  The company offers a wide range of insurance products and serves pan-India customers as it has over 1,403 branches across the country.

1. Aditya Birla Sun Life has impressive CSR, ASR, and complaint volume metrics. Although its average annual business value is not exceptionally high, the insurer is progressing well.

1. Some of the best term insurance policies offered by Aditya Birl Sun Life Insurance Company are:

o   DigiShield: This popular term insurance plan offers 10 variants on death benefit perks. It includes several riders such as Waiver of Premium, Accidental Death Benefit/Accidental Death Benefit Rider Plus, Critical Illness in Built Benefit and Rider, and Hospi Care Benefit. The plan also features an in-built terminal illness cover, making it comprehensive and affordable despite lacking a few essential features.

o   Saral Jeevan Bima: A basic term insurance plan with coverage ranging from Rs.5 lakhs to Rs.25 lakhs. It provides the basic death benefit perk and includes a single rider, the Accidental Death Benefit.

1. Aditya Birla Sun Life Insurance is a credible insurer with strong metrics in ASR, CSR, complaint volume, and annual average business. However, the term insurance plan options are somewhat limited.

4. Tata AIA Life Insurance Co. Ltd.:

1. Tata AIA Life Insurance Company was launched by the joint venture of TATA Sons and AIA Group.

1. TATA AIA Life Insurance excels in ASR, CSR, and complaint volume metrics, with numbers among the industry's best.

1. The company's operational efficiency and brand equity contribute to its extensive client base and impressive average annual business income, securing its place as one of India's top five life insurers.

1. Some of the best term insurance policies offered by Tata AIA Life Insurance Company Limited are:

o   Sampoorna Raksha Supreme: Offers three variants—Life Option, Life Plus Option, and Life Income Option—based on death benefit payouts. Features include terminal illness perks, life stage benefits, top-up sum assured, and flexible premium payments. It is comprehensive and affordable, with riders like Accidental Death Benefits and Accidental Total and Permanent Disability Benefits. Minimum income eligibility is Rs.10 lakhs.

o   Maha Raksha Supreme: Suitable for policyholders with a minimum annual income of Rs.15 lakhs. This policy includes a whole-life variant, terminal illness perks, and riders such as Accidental Death Benefits, Accidental Total and Permanent Disability Benefits, Criticare Plus Benefits, and Criticare Benefits. Minimum coverage starts at Rs.2 crores.

o   Sampoorna Raksha Supreme Vitality: Similar to Sampoorna Raksha Supreme, this plan includes Criticare Plus Benefits and Criticare Benefits riders. It is available for policyholders with a minimum income eligibility of Rs.15 lakhs and offers a maximum cover of Rs.2 crores.

1. TATA AIA Life Insurance is an excellent choice, offering a variety of plans to meet different income and term cover requirements.

5. ICICI Prudential Life Insurance Co. Ltd.:

1. ICICI Prudential Life Insurance Company is the first private-sector insurance company that started its operation in December 2000.

1. The company is a joint venture of ICICI Bank Limited and Prudential Plus.

1.  ICICI Prudential Life is a reputable insurer with excellent CSR and ASR metrics.
2. Its complaint volume is slightly higher than the other top five providers, reflecting a minor dip in operational efficiency. Despite this, the insurer has one of the highest business volumes in the industry.

1. One of the best term insurance policies offered by ICICI Prudential Life Insurance Company Limited is:

o   iProtect Smart: The sole term insurance option from ICICI Prudential Life offers 4 variants based on death benefit payouts:

§  Lump sum

§  Income

§  Lump sum plus income

§  Increasing Income

The policy includes four plan options:

§  Life

§  Life Plus

§  Life and Health

§  All In One—based on various riders such as Waiver of Premium + Terminal Illness Benefit, Waiver of Premium due to Disability, Accidental Death Benefit, and Critical Illness Benefit.

1. While the higher complaint volume is a concern, the iProtect Smart plan's extensive customisation options make it a strong choice. ICICI Prudential Life remains a credible insurer despite the need for more term insurance policy options.

6. Bajaj Allianz Life Insurance Co. Ltd.:

1. Bajaj Allianz Life Insurance Company Limited was launched in 2001 which is a joint venture between European Financial Services Company Allianz SE and Bajaj Finserv Limited.

1. Bajaj Allianz Life is a reputable insurer with excellent CSR, ASR, and low complaint volumes. The insurer's strong client base is reflected in its impressive average annual business income, making it one of the industry's best.

1. Some of the best term insurance policies offered by Bajaj Allianz Life Insurance Company are:

o   e-Touch: This popular and affordable plan offers coverage ranging from Rs.50 lakhs to Rs.10 crores based on income. It has three variants:

o   Life Shield

o   Life Shield Plus

o   Life Shield Return of Premium: With features like death benefits, terminal illness coverage, waiver of premium, accidental death benefit rider, and return of premiums. However, it lacks a critical illness rider.

o   Smart Protect Goal: This comprehensive plan has four variants—Life Coverage, Child Education Extra Cover, Life Cover with Joint Life, and Increasing Cover—designed to meet evolving financial needs. Riders include critical illness benefits, accidental death benefits, waiver of premium benefits on CI, and accidental total permanent disability benefits.

o   iSecure: An affordable vanilla term insurance policy offering coverage from Rs.25 lakhs to Rs.50 lakhs. It includes riders like waiver of premium, accidental death benefit, and total/partial and permanent disability rider, but lacks critical illness benefits.

1. Bajaj Allianz Life Insurance is affordable and reliable, though options for comprehensive term insurance policies are somewhat limited.

7. SBI Life Insurance Co. Ltd.:

1. SBI Life Insurance company was established in 2001 which is a joint venture between BNP Paribas Cardif and State Bank of India.

1. The company offers a wide range of pension products along with health insurance, protection plans, and other plans which can purchased both via online and offline mode.

1. SBI Life Insurance is a reliable option, showcasing satisfactory metrics in CSR, ASR, and complaint volume, which is among the lowest in the industry. Its excellent average annual business income reflects its extensive track record and brand equity.

1. Some of the best term insurance policies offered by SBI Life Insurance are:

o   Arogya Shield: Combines pure-term insurance from SBI Life Insurance and health insurance coverage from SBI General Insurance. Health coverage ranges from Rs.1 lakh to Rs.3 lakhs, while term coverage spans Rs.5 lakhs to Rs2.50 crores. The term insurance lacks customization riders.

o   eShield Next: A comprehensive term plan offering death benefits in Lump sum, Monthly instalments, or a combination. It features three options: Level Cover Benefit, Increasing Cover Benefit, and Level Cover with Future Proofing Benefit. Built-in features include terminal illness benefits and life stage perks. Riders are Better Half Benefit, Accidental Death Benefit Rider, and Accidental Total & Permanent Disability Benefit Rider.

o   Saral Jeevan Bima: An IRDAI-mandated plan offering coverage from Rs.5 lakhs to Rs.25 lakhs without any riders.

o   SBI Life Smart Shield: A popular plan offering coverage from Rs.25 lakhs to unlimited, with two variants: Level Term Assurance and Increasing Term Assurance. Riders include Accidental Death Benefit Rider and Accidental Total and Permanent Disability Benefit Rider.

o   SBI Life Grameen Bima: An affordable plan offering coverage from Rs.10,000 to Rs.50,000.

1. SBI Life Insurance, being publicly owned, may face delayed or rejected claim settlements and its term insurance policies lack comprehensive features.

8.  Kotak Mahindra Life Insurance Co. Ltd.:

1. Kotak Mahindra Life Insurance company started as a general insurance provider in 2001 and is a subsidiary of Kotak Mahindra Bank Limited.

1. Till 2022, the company had over 4.21 assets under management and has insured over 50 million customers in India.

1. Kotak Mahindra Life appears credible based on CSR, ASR, complaint volume, and average annual business income. However, it lacks comprehensive term insurance plans.

1. Some of the best term insurance policies offered by Kotak Mahindra Life Insurance Company are:

o   Kotak e-Term: An affordable policy offering three options: Life, Life Plus, and Life Secure. It includes riders like Critical Illness Plus Benefit Rider and Permanent Disability Rider.

o   Kotak Term Plan: A basic policy with coverage ranging from Rs.3 lakhs to Rs.24,99,999. It offers three riders: Critical Illness Plus Benefit Rider, Accidental Death Benefit, and Permanent Disability Rider.

o   Kotak Saral Jeevan Bima: An affordable plan providing coverage from Rs.5 lakhs to Rs.25 lakhs with a special premium rate for women. This plan does not offer any riders, limiting customization options.

1. While Kotak Life Insurance is credible, it lacks comprehensive plans and riders, making it less attractive as a top life insurance provider.

9.  HDFC Life Insurance Co. Ltd.:

1.  HDFC Life Insurance was founded in 2000 as a joint venture of Housing Development Financial Corporation Limited and Standard Life Plus.

1. This life insurance company offers 13 group products and 38 individual insurance product that includes savings, health, pension, child and women, and protection plans.

1. HDFC Life Insurance is a reliable insurer with excellent CSR, good ASR, and one of the lowest complaint volumes in the country. The insurer boasts a strong client base, reflected in its impressive annual business income.

1. Best Term Insurance Policies:

o   Click2Protect Life: Offers extensive coverage from Rs.25 lakhs to Rs.2 crores. It includes multiple variants like Life & Critical Illness Rebalance, Life Protect, and Income Plus. Riders include Income Benefit on Accidental Disability, Critical Illness Plus, Protect Plus, Return of Premium, Waiver of Premium on Critical Illness, Accidental Death Benefit, and more.

o   Click2Protect Super: This policy includes an in-built terminal illness benefit and a smart exit perk, making it comprehensive but slightly more expensive. It offers three variants: Life, Life Plus, and Life Goal, with riders such as Waiver of Premium on Critical Illness, Return of Premium, Spouse Cover Option, and Life Stage Option.

o   Click2Protect 3D Plus: One of the most comprehensive plans with nine options: Life, 3D Life, Extra Life, Income, Extra Life Income, Income Replacement, Return of Premium, Life Long Protection, and 3D Life Long Protection. Riders include Critical Illness, Terminal Illness, Waiver of Premium, Return of Premium, Regular Income Benefit, and Life Stage Benefit.

1. Despite a preference for better ASR numbers, HDFC Life Insurance offers a robust lineup of comprehensive and affordable term insurance plans, making it a strong choice.

10.  PNB MetLife India Insurance Co. Ltd.:

1. One of the leading life insurance companies in India, PNB MetLife India Insurance company was established in 2001.

1. The insurance is spread across 117 locations across the country and is renowned for their protection and retirement insurance plans.

1. PNB MetLife India Insurance Company also offers various other plans such as savings plan, child plans, monthly income, ULIP, and money-back plans.

1. PNB MetLife India Insurance has impressive Claim Settlement Ratio (CSR) and Amount Settlement Ratio (ASR) but struggles with high complaint volume, reflecting potential operational inefficiencies. The company's average annual business income also needs improvement.

1. Some of the best term insurance policies offered by PNB MetLife India Insurance Company are:

o   PNB MetLife Mera Term Plan: This comprehensive policy offers four variants -

§  Lump Sum Death Benefit

§  Lump Sum Death Benefit + Regular Monthly Income

§  Lump Sum Death Benefit + Increasing Monthly Income

§  Lump Sum Death Benefit + Regular Monthly Income till the child turns 21 Riders include Serious Illness, Accidental Death Benefit, Critical Illness, and Accidental Disability Benefit. In-built features offer perks like joint life cover and life stage benefits.

o   PNB MetLife Mera Term Plus Plan: A basic term insurance policy with riders such as Serious Illness, Accidental Death Benefit, Critical Illness, and Accidental Disability Benefit. The plan has variants - Life, Life Plus, and Life Plus Health.

o   PNB MetLife Saral Jeevan Bima: A pure term insurance plan offering minimal coverage ranging from Rs.5 lakhs to Rs.50 lakhs without any riders for customization.

1. PNB MetLife India Insurance shows promise but is currently hampered by high complaint volume and less comprehensive term insurance policies, ranking it 10th in our top 10 life insurance companies in India.