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Term Insurance Companies are the firms which serve people by offering various term insurance plans in India. As of now, as many as 24 insurance providers are there in the country which are providing term insurance plans. Now for the novice, term insurance policies are like life insurance policies which offer an assured sum amount to the nominee of the insured as death benefit if there is an unfortunate incident of death of the insured during the tenure of the policy.
Thus, with the help of term insurance, the insured person can financially secure his/her family in case of sudden demise of the insured. And that is the reason why it is important to choose a reliable and trustworthy term insurance company to buy the term insurance policy of your choice. By choosing a term provider that you can rely on, you will not only ensure security of your closed ones but will also help them in getting the compensation with ease.
This is another important thing to consider, while choosing a term insurance company. If you plan to buy a term insurance policy from a reliable term insurance company, the first thing to consider is the claim settlement ratio of the company. A term insurance company with a good and consistent claim settlement ratio is likely to allow better compensation as compared to insurance companies with low claim settlement ratios.
Top Term Insurance Companies in India
The insurance sector in India has numerous insurance companies offering term insurance plans at the most affordable and cost-effective premium rate. These plans come with high coverage and best settlement ratio to make things easy for the insured or his/her family. At present, as many as 24 insurance companies in India are offering term insurance plans at affordable prices to people.
Below is a list of some of the top term insurance companies in India in terms of their claim settlement ratio:
| No | Term Insurance Company | Claim Settlement Ratio (FY 2020-21) in Percentage (%) |
|---|---|---|
| 01 | Max Life Insurance | 99.35 |
| 02 | Aegon Life Insurance | 99.25 |
| 03 | Bharti Axa Life Insurance | 99.05 |
| 04 | Life Insurance Corporation of India (LIC) | 98.62 |
| 05 | Exide Life Insurance | 98.54 |
| 06 | Kotak Life Insurance | 98.50 |
| 07 | Reliance Life Insurance | 98.49 |
| 08 | Bajaj Allianz Life Insurance | 988.48 |
| 09 | Tata AIA Life Insurance | 98.02 |
| 10 | PNB MetLife Insurance | 98.17 |
| 11 | HDFC Life Insurance | 98.01 |
| 12 | ICICI Prudential Life Insurance | 97.90 |
| 13 | Aditya Birla Sun Life Insurance | 98.04 |
How To Find The Best Term Insurance Company In India?
A Term insurance plan supports the family members of the insured financially in the event of sudden death of the person. Thus, it is very important to choose the most suitable term insurance plan while considering to opt for one. The best term life insurance company in India will not just allow comprehensive cover under the plan, but will also cost you a low premium rate.
A thorough research on the insurance provider is a must before you choose to buy a term insurance policy. Also, it is equally important to identify your precise insurance requirements while considering a plan of term insurance.
If you want to know which term insurance is best in India you must consider the below mentioned factors before buying or selecting a particular term insurance company:
Claim Settlement Ratio
Claim settlement ratio of Term Insurance Companies is the most important factor to consider while choosing the best term insurance company. When we talk about an insurance company's claim settlement ratio it means the total number of claims settled by the insurer during a budget year as against the total claims received by the insurer during that year. This ratio helps in deciding the efficiency of the insurer as well as its trustworthiness. An insurance company with a high claim settlement ratio portrays the commitment and loyalty of the company towards the policyholders. The Insurance Regulatory and Development Authority (IRDA) observes and keeps a note of the claim settlement ratio of insurance companies in India.
Availability of Add-On cover/Riders
Another factor to consider while choosing the best term insurance company in India is to check the availability of riders offered by the insurance companies. The add-on covers or riders are added benefits that are presented by term insurance companies. These riders are offered at the time of buying a term insurance plan to upgrade the cover received under the term policy by paying an extra amount.
Thus, while buying a top term life insurance policy it is important for the insured to look for the insurers who offer the option of adding riders to the policy. The common riders that most term insurance companies offer include
- Critical Illness Rider
- Accidental Death Benefit Rider
- Accidental Total or Permanent Disability Rider, and
- Waiver of Premium Rider
Insurer's Solvency Ratio
Another factor to consider while opting for the top term life insurance companies is the solvency ratio of an insurance provider. By solvency ratio it means the insurer's financial status. It is likely that insurance companies should have greater assets as compared to liabilities. Thus, the policyholder can be sure that the insurer has enough funds to settle any urgent claims if required.
Customer Support service of the insurer
This is again a very important factor to consider for best term life insurance companies. Having a dynamic customer care support service of the insurer is a necessary aspect to consider while buying an insurance policy. So, it is always advisable to choose an insurance company offering robust customer support with a team of experts holding good knowledge. It is important that the customer team stays available 24x7 to resolve any query of the insured if there is a need.
Best term insurance plans in India
Below are some popular term insurance plans in India:
| Plan Name | Entry Age | Maturity Age | Sum Insured | Policy term |
|---|---|---|---|---|
| Aegon Life iTerm Plan | 18 to 65 years | 80 years | 25 lakh | 18 to 65 yrs |
| Bharti AXA Term Plan eProtect | 18 to 65 years | 60 years | 25 lakh | 10 to 75 yrs |
| Aditya Birla Sun LIfe Protection Plan | 18 to 65 years | 75 years | 50 lakh | 5 to 70 yrs |
| Kotak e-Term Plan | 18 to 65 years | 70 years | 3 lakh | 5 to 75 yrs |
| LIC E-term Plan | 18 to 60 years | 75 years | 25 lakh & 50 Lakh | 18 to 60 yrs |
| Max Life Online Term Plan Plus | 18 to 65 years | 75 years | 25 lakh | 18 to 60 yrs |
| Aviva Lifeshield Insurance plan | 18 to 55 years | 65 years | 5 lakh | 10 to 30 yrs |
Frequently Asked Question
If you consider the Claim Settlement Ratio (CSR) of a company, Max Life Insurance is regarded as the best term insurance company in India for FY 2020-21.
Below is the list of best term insurance companies in India for FY 2020-21:
- Max Life Insurance
- Aegon Life Insurance
- Bharti Axa Life Insurance
- Life Insurance Corporation of India (LIC)
- Exide Life Insurance
- Kotak Life Insurance
- Reliance Life Insurance
- Bajaj Allianz Life Insurance
- Tata AIA Life Insurance
- PNB MetLife Insurance
- HDFC Life Insurance
- ICICI Prudential Life Insurance
- Aditya Birla Sun Life Insurance
There are over 24 term insurance companies in India at present which have the authority of the Insurance Regulatory and Development Authority (IRDAI) for offering term insurance policies to customers in India.
If you consider the Claim Settlement Ratio (CSR) of a company, Max Life Insurance is regarded as the best term insurance company for FY 2020-21. Others in the list include:
- Aegon Life Insurance
- Bharti Axa Life Insurance
- Life Insurance Corporation of India (LIC)
- Exide Life Insurance
- Kotak Life Insurance
- Reliance Life Insurance
- Bajaj Allianz Life Insurance
- Tata AIA Life Insurance
- PNB MetLife Insurance
- HDFC Life Insurance
- ICICI Prudential Life Insurance
- Aditya Birla Sun Life Insurance
Portability of a plan allows the insured the right to transfer insurance plans from the current insurer to another insurance company if the policyholder is not satisfied with the current insurer. However, term plans do not allow the insured to switch from one company offering term insurance to another unless you opt for a different policy with a different company.
It depends on numerous factors as to how much time an insurer or term insurance provider would take to settle claims. However, IRDAI guidelines state that every insurance provider must settle a claim of term insurance within a month (30 days) of receiving the required papers from the nominee of the policy or the claimant.
Of course you can purchase a term insurance policy via online mode because every term insurance provider offers online plans of term insurance to make it easy for the customer to purchase a policy. However, clients can also go to the branch of the insurer to purchase offline policies.
