Term Insurance Companies
Term insurance is one of the most cost-effective modes of investments that offer a sack full of different benefits to protect and secure the insured person and his family, even in his absence, at an affordable premium rate. It offers a lump sum amount in case of untimely and unfortunate death of the policyholder but does not provide any maturity benefit if the insured person survives the entire policy period.
In India, a wide number of life insurance companies offer term insurance plans with different benefits and features to cater to the varied needs of individuals. The best term insurance plans are those, which offer higher coverage at a lower premium rate. Many insurers even allow the nominee or the beneficiary to receive the lump sum amount in installments for a certain period of time to generate a regular flow of income so that the family of the insured person remains protected even if he is not there. Some of the insurance companies offer a term plan with a Return of Premium (TROP) facility if the insured survives the policy term.
Term Insurance Providers Available in India
To avail of a good term plan, it is important to know the company names that offer the term plans. The following table is a glimpse of all the insurance companies available in India that offer term plans along with the name of the term plans offered by the respective companies.
|Company name||Solvency ratio (as of March 2020)|
Individual death claim settlement ratio (benefit amount) in the financial year of 2019-2020
|Premium underwritten by the life insurers in the financial year of 2019-2020|
|HDFC Life Insurance Company||1.94||99.07||Rs. 32,706.89 Crores|
|Aditya Birla Sun Life Insurance Company Limited||1.78||97.54||Rs. 8,009.97 crores|
|Tata AIA Life Insurance||2.35||99.06||Rs. 8,308.51 crores|
|Bajaj Allianz Life Insurance||7.45||99.02||Rs. 9,752.53 crores|
|Kotak Life Insurance Company||2.90||96.38||Rs. 10,340.08 crores|
|PNB MetLife India Insurance Company||1.89||97.18||Rs. 5,506.96 crores|
|Canara HSBC Oriental Bank of Commerce Life Insurance Company||3.65||98.12||Rs. 3,942.82 crores|
|SBI Life Insurance Company||1.95||94.52||Rs. 40,634.73 crores|
|Exide Life Insurance Company||2.10||98.15||Rs. 3,219.59 crores|
|Bharti AXA Life Insurance Company||1.86||97.35||Rs. 2,187.26 crores|
|ICICI Prudential Life Insurance Company||1.94||97.84||Rs. 33,430.70 crores|
|Life Insurance Corporation (LIC) of India||1.55||96.69||Rs. 3,79,389.60 crores|
|Max Life Insurance Company||2.07||99.22||Rs. 16,183.65 crores|
|Star Union Dai-ichi Life Insurance||2.40||96.96||Rs. 2,310.36 crores|
|Aviva India Insurance Company||2.42||97.53||Rs. 1,193.64 crores|
|Edelweiss Tokio Life Insurance Company||2.32||83.44||Rs. 1,048.48 crores|
|Future Generali Total Insurance Solutions||1.59||95.28||Rs. 1,480.25 crores|
|IndiaFirst Life Insurance Company||1.72||96.65||Rs. 3,360.44 crores|
|Shriram Life Insurance Co. Ltd.||1.78||91.61||Rs. 1,729.05 crores|
|Reliance Nippon Life Insurance Company||1.84||98.12||Rs. 4,440.94 crores|
|Ageas Federal Life Insurance||2.98||96.47||Rs. 1,842.51 crores|
|Aegon Life Insurance||2.36||98.01||Rs. 575.74 crores|
HDFC Life Insurance Company
Started its journey in 2000 as a long-term life insurance solutions provider, it is a joint venture between HDFC Ltd., India’s leading housing finance institution, and abrdn plc (formerly Standard Life Aberdeen plc) a global investment company. The company has come up with a sack full of life insurance plans ranging from protection, savings, pension, term to ULIP plans and many more and for the last two decades has been serving its customers faithfully. As of September 30, 2021, the Company had 38 individual and 13 group products, along with 7 optional rider benefits, to cater to the diverse range of customer needs. The company has 372 official branches spread all over the country and it is a technology-driven, customer-friendly company that always tries to present some unique and beneficial plans to its consumers.
Aditya Birla Sun Life Insurance Company Limited
Starting in October 2007 as Aditya Birla Financial Services Private Limited, the company has reached its milestone in the year 2017 as it becomes a pure play-listed holding company of all the financial services businesses of the Aditya Birla Group and was renamed as Aditya Birla Capital Limited. The company is well-connected with its customers through 2 lakhs agents or channel partners, more than 935 official branches in India, and 27,000+ experienced employees and various bank partners. The company has come up with a wide range of life insurance products such as health, child, retirement, term, ULIP, savings plans, and many more with different variants to address the needs of the customers.
Tata AIA Life Insurance
Tata AIA Life Insurance Company Limited is a joint venture between Tata Sons Pvt. Ltd., the Indian conglomerate, and AIA Group Ltd. (AIA), a pan-Asian life insurance group in the world. The company offers simple yet beneficial life and health insurance products to meet the customers’ individual needs as well as life goals. It has received numerous awards and accolades including the Extraordinaire Award at the 5th edition of Brand Vision Summit 2019-20 and it is one of the fastest-growing companies in the Life Insurance sector as it maintains its rank no. 5, based on individual weighted new business premiums.
Bajaj Allianz Life Insurance
Starting its operation in the year 2001, Bajaj Allianz Life has become one of the leading private insurance companies in India. The company is a joint venture between Bajaj Finserv Limited, India’s famous diversified non-banking financial institution, and Allianz SE, the world’s leading asset manager and insurer. The company always tries to launch technology-driven, innovative insurance solutions like RoMC (Return of Mortality Charges) and has presented various life insurance plans including four-term plans. As of 31 December 2021, the company has 509 branches and more than 1,16,000 agents and it has also obtained the privilege to secure a place in the Guinness Book of World Records with the Bajaj Allianz Life Plankathon 2020.
Kotak Life Insurance Company
Kotak Mahindra Life Insurance Company Ltd started its journey in the year 2001 and since then, it has been serving its customers faithfully. As of 31st December 2021, it covers more than 34.8 million lives all over the country. The company is driven by strong values such as professional approach, innovation, continuous improvement, financial prudence, real value to customers, and integrity. Apart from the term insurance, the company also has protection plans, savings, and investment plans, health plans, retirement plans, etc.
PNB MetLife India Insurance Company
Headquartered in Hong Kong, PNB MetLife India Insurance Company Limited (PNB MetLife) has commenced its journey in 2001 and is a partnership among MetLife International Holdings LLC (MIHL), Punjab National Bank Limited (PNB), M. Pallonji, and Company Private Limited, Jammu & Kashmir Bank Limited (JKB), and other private investors. The company has the global expertise and the understanding of the local needs and has come up with 25 Retail and 14 Group Products including Riders benefits. The company has bagged numerous awards and recognitions including Best Compliance Team 2021 Award and has its presence in 109 locations across the country.
Canara HSBC Oriental Bank of Commerce Life Insurance Company
Headquartered in Gurugram, it started in the year 2008 as the partnership among Canara Bank, HSBC Insurance (Asia Pacific) Holdings Limited, and Punjab National Bank. This company is the perfect amalgamation of local knowledge and global expertise and it remains well connected with its consumers through well-diversified partner bank branches. This technology-driven, consumer-friendly company has come up with three-term insurance plans along with the child, savings, retirement, health, online insurance plans, and many more, which can be tailored as per the convenience of the policy-seeker.
SBI Life Insurance Company
Started its journey in the year 2000, SBI Life Insurance is one of the most trusted and leading life insurance companies of India, of which the parent company is the State Bank of India (SBI), the largest commercial bank of the country. SBI Life always tries to reach its customers easily, with its well-spread 947 offices PAN India, 18,236 employees, a large and productive individual agent network of about 143,232 agents, 60 corporate agents, a widespread bancassurance network of 14 partners, more than 27,000 partner branches, 108 brokers and other insurance marketing firms. The company has presented a wide range of diversified life insurance products to address the varied needs of different individuals and believes in transparency, integrity, innovation, and sustainability.
Exide Life Insurance Company
Headquartered in Bengaluru, this company is a profitable life insurance company that is completely owned by HDFC Life and started its journey in 2001-2002. The company is well-connected with its consumers through 200 company offices spread all over the country and through multiple channels viz. Agency, Bancassurance, Corporate Agency & Broking, Direct Channel and Online. It is driven by the core values of Dependable, Dynamic, Responsive, and Foresighted. Apart from the four-term insurance plans, the company has come up with a variety of life insurance policies such as savings, protection, pension, and many more and always tries to present unique and beneficial plans for its customers.
Bharti AXA Life Insurance Company
Bharti AXA commenced its journey in the year 2006 as a partnership between Bharti Enterprises, a world-class business tycoon in telecom, insurance, and foods, and the AXA Group, a conglomerate of independently run businesses. Since then, the company has been serving its customers faithfully with complete transparency with its diversified life insurance products that are designed to cater to the multiple needs of the customers. It has 263 official branches spread all over the country and in the financial year of 2020-2021, it has a claim settlement ratio of 99.05%, which denotes the integrity of the company.
ICICI Prudential Life Insurance Company
Starting with the vision to build an enduring institution that serves the protection and long-term saving needs of customers with sensitivity in the fiscal year 2001, this company is the joint venture of ICICI Bank Limited and Prudential Corporation Holdings Limited. The company has presented multiple diversified, customer-centric, quality products that can address the needs of almost every individual at an affordable premium rate. It has bagged numerous awards and accolades since its existence with the recent ET BFSI Excellence Award 2021′ for ‘Excellence in Innovation’ and “Excellence in Claims and Customer Experience” by FICCI Insurance Industry Awards 2021.
Life Insurance Corporation (LIC) of India
Headquartered in Mumbai, Life Insurance Corporation of India is an Indian statutory insurance and investment corporation that is owned by the Ministry of Finance, Government of India. It is one of the oldest insurance companies in India that started its journey in the year of 1956. LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the corporate office, and also has recently launched its Satellite Sampark offices with the aim to serve its customers in a better way. The Corporation has received numerous awards and recognitions and apart from three-term insurance plans, it has presented different life insurance policies such as the pension, ULIP, micro insurance, withdrawn plans, and many more.
Max Life Insurance Company
Formerly known as Max New York Life Insurance Company Limited, Max Life Insurance Company is a joint venture between Max India Ltd, and Axis Bank and commenced its journey in 2000. The company has 277 official branches PAN India and has ranked 18th amongst ‘India’s Best Companies to Work For’ in 2021. The company has been serving its customers with trust and devotion for more than 20 years and always strives to present diversified and beneficial life insurance plans to its customers to address their needs with full transparency.
Star Union Dai-ichi Life Insurance
Started its journey in the year of 2009, SUD Life insurance is the joint venture among Bank of India and Union Bank of India, India’s two leading public sector banks, and Dai-ichi Life Holdings, a famous life insurance company in Japan. Bank of India and Union Bank of India have sponsored select Regional Rural Banks, which provides SUD Life access to more than 1950 branches in the rural areas of the country so that the customers can have easy access to the life insurance products, and in total, the company has more than 15,000 bank branches spread all over the country. The company has not only gained its recognition as a valuable life insurance company within a short period of time, but also it vows to serve its customers with the utmost integrity.
Aviva India Insurance Company
Aviva India is a joint venture between Aviva PLC, one of the world’s oldest insurance companies, and Dabur Invest Corp, one of India’s oldest and most respected business houses. Aviva is carrying the legacy of more than 300 years, whereas Dabur is bearing the knowledge of local people for more than 100 years and together they have come up with magnificent life insurance policies that showcase the global expertise and local knowledge. The company is also associated with a bunch of social works such as Aviva Community Fund, Sustainable Development, Red Cross Partnership, and Aviva India Street to School Program. The company works for its customers with full dedication, trust, and transparency and always looks for innovative life insurance products that can benefit the consumers.
Edelweiss Tokio Life Insurance Company
This company has started its journey as a joint venture between Edelweiss, a conglomerate in diversified financial services, and Tokio Marine Holdings, Inc., a life insurance company based in Japan. It is relatively a new life insurance company in the market of India with the aim of providing quality services to its customers. For this, the company has come up with customer-friendly, cost-effective life insurance products, ranging from term insurance, retirement, investment, health insurance plans, and many more with a bundle of variants to cater to the different needs of the individuals. Though a newcomer, it has secured many awards and recognitions including Asia’s Best Insurance Company Award for Digital Sales Channel at Insurance Alerts Awards 2020.
Future Generali Insurance
Starting its journey in September 2007, Future Generali is a joint venture between the two industrial tycoons, Future Group, a giant in India’s retail industry, and Generali Group, an Italy-based insurance company. The company’s vision is to protect and enhance people’s lives actively and the mission is to be the first choice of the policy-seekers when it comes to insurance. Needless to say, not only this company has come up with a sack full of different beneficial life insurance products but also, it has presented Combo Solutions to address the diversified needs of the policy-seekers. The company also provides different tools and calculators to help out customers in finding out the premium value of their respective policies.
IndiaFirst Life Insurance Company
Headquartered in Mumbai, IndiaFirst Life is one of the newest game-changers in the life insurance industry of the country and is gaining popularity in the market due to its diversified, easy-to-understand, affordable and transparent policies. Beginning its journey in November 2009, the company was built up with the partnership among Bank of Baroda, Andhra Bank (now, Union Bank of India), and Legal & General. The company has been recognized as ‘India’s Best Workplaces in BFSI 2021’ by Great Place to Work Institute fourth time in a row and Great Places to Work certified for 2021 for the 5th time.
Shriram Life Insurance
Though incorporated in 2005, Shriram Life Insurance Company started its operations in the year 2006 with the objective to offer life insurance plans and solutions that cater to a wider demography. Presently, the company has more than 423 offices spread across the country. This company has started its journey with the collaboration between Salman Group, a leading financial services group based in Cape Town, South Africa, and Shriram Group, a famous name in India’s Finance Services. It has designed various affordable plans for the customers such as savings, cancer, term, micro insurance plans, and many more.
Reliance Nippon Life Insurance Company
This company is the collaboration between two business giants, Reliance Capital, a business conglomerate in India, and Nippon Life Assurance Co. Ltd., a well-known insurance company based in Japan. As of March 2021, this ever-growing company has a strong distribution network of 713 branches and 42,604 advisorsand was rated amongst the Top 3 Most Trusted Life Insurance Service Brands by Brand Equity‘s Most Trusted Brands Survey 2018. Since its inception, the company has been winning the trust of its consumers through its transparent, easy-to-understand diversified life insurance products, ranging from protection, health, child, savings insurance plans, and many more.
Ageas Federal Life Insurance
Previously known as IDBI Federal Life Insurance Co Ltd., this company has started its journey as a partnership between Federal Bank, India’s one of the leading private sector banks, and Ageas, a Europe-based multinational insurance tycoon. The company is based on the motto of human relationship that has accelerated it to come up with a sack full of consumer-friendly life insurance products such as term, ULIP, child, retirement, child plans, etc. the company has bagged numerous awards and recognitions, including ‘India’s Top 30 Best Workplaces in BFSI 2021’ by the Great Place to Work Institute for the second consecutive time. The company is always ready with a solution for all the financial needs of its customers.
Aegon Life Insurance
Motivated by digitalization and to make the insurance products more convenient for its customers, Aegon Life is the first insurance company in India that launched online term plans. Headquartered in Mumbai, the company started its journey as a joint venture between Aegon N. V, an international insurance provider, and Bennett Coleman and Company, India’s largest media conglomerate popularly known as the Times Group. Triggered by the vision of thinking ahead, this company has come up with multiple diversified life insurance products such as term, ULIP, savings, group, and many more. Since its inception, the company has received multiple awards and accolades, winning the trust of its customers.
Factors That Keep in Mind While Choosing Best Term Insurance Provider in India?
As in India, the life insurance market is flooded with multiple insurance companies that have come up with a sack full of term insurance products with different variants to cater to the needs of its customers, it has become difficult for a policy-seeker to find a good life insurance company that can suit his purposes well. But while selecting a company, if you keep in mind certain parameters, you won’t be facing problems. To know about these potential useful parameters, have a look at the below mentioned.
Claim Settlement Ratio – We buy a term insurance plan so that it can stand beside us in our most needed time. For that, the claim settlement ratio of the company plays a pivotal role as it depicts the credibility of the company. Usually, the higher the claim settlement ratio is, the more reliable the company is. Apart from the selected company’s official website, you can also get the claim settlement ratio of the company for that particular financial year in the Annual Report of IRDAI.
Solvency Ratio – A solvency ratio is a key metric that is used to measure a company’s ability to meet its long-term debt obligations. The solvency ratio of an insurance company is the size of its capital relative to all risks it has taken. Usually, if the solvency ratio of a company is on the higher side, it highlights the fact that the company has the ability to handle any financial crisis and it can pay off the lump sum claim amount of its consumers.
Background of the Company – It is very important to know in detail the background of the insurance company, its history, and the shareholders of the company. If the company shares a rich and reputed background, it is likely that it has the capacity to hold on to any catastrophic situation. Then, the policy-seekers can also rely on the insurer without any anxiety.
Market Share – The IRDAI Annual Report depicts the premium underwritten by an insurance company for that particular financial year and this premium amount symbolizes the company’s share in the market and it also explicitly talks about in which sector the company has invested what amount of money. The higher the amount is, the stronger the insurer is.
Number of Plans – If your selected company has matched all the criteria but it does not have enough term plans, then that insurer would be of no use. A bunch of variants always indicates that you can have multiple options to choose from according to your convenience. So, select that life insurer that has enough term plans to offer.
Distribution Network – It is one of the important factors while choosing a suitable life insurance company for term plans. The company should have a good distribution network including official branches, agents, partner banks, etc. so that it would be easily reachable.
Customer Service – The customer service portal of the insurance company must be well-connected with its consumers. So that, whenever you need any kind of services, you can smoothly reach out to the company.
Easy Claim Process – The claim process is of the basic criteria for selecting a life insurer because in case of an unfortunate incident you should not and cannot avail of a complex and long claim settlement process. It should be customer-friendly and smooth.
Transparent Policies – The company needs to have transparent and easy-to-understand insurance products that will not have any hidden costs. The product brochure must be written in easy, placid, and lucid language so that anyone can understand it without any trouble. Otherwise, you may fall into an unwanted situation in the future.
Frequently Asked Questions
Only Life Insurance Corporation (LIC) is owned by the Ministry of Finance, Government of India.
Every life insurance company has come up with one or more diversified term plans. The plan that suits your interests most, would be the best one for you. While selecting an insurer, you need to keep in mind certain parameters that are mentioned above. After evaluation of all the potential parameters, it is your call to find out the best life insurance company that can cater to your needs.
This is not at all true. It is not necessary that the plan that offers a lower premium rate provides lesser benefits and facilities. It might be possibly true that the company is more customer-friendly. To understand in detail, you need to do thorough research and compare the different term plans offered by different companies.
Yes, you can avail of tax benefits on the premiums paid for a term plan under Section 80C of the Income Tax Act, 1961. There are other tax benefits associated with a term plan under Section 80 D and Section 10(10D) as well.
It totally depends on the insurer and the selected plan. Keeping in view the global pandemic, many life insurance companies are now offering Covid-19 cover under their term insurance plan(s).