Best Life Insurance Companies In India By 2022
The life insurance penetration in India stands at 3.7 percent, according to an analysis. This implies that although India is the 2 second-largest country worldwide, its citizens are lacking awareness. They do not have a good understanding of the importance of life insurance and its effect on their daily lives. The recent pandemic brought back the attention towards health and the need for an insurance policy that would cover their hospitalization costs, but there is a lot of ground to cover.
A life insurance policy is the requirement of the present day, according to financial advisors, especially in light of the uncertain times that we are living in. A life insurance policy can provide much-needed security to your family and to you in the event of a tragedy by guaranteeing your financial obligations. That’s the reason for financial experts to advise people on purchasing life insurance policy from the best life insurance companies to help you with proper claim settlement at the right time.
Top Life Insurance Companies in India
In India, there are 24 life insurance companies in operation that are authorised by IRDAI (Insurance Regulation and Development Authority of India) to sell life insurance policies to the general public. It can be difficult to select the best term insurance plan or the best life insurance policy from this lot without proper research.
We have listed the best life insurance company in India based on an important parameter – claim settlement ratio (CSR). It is the ratio of claims settled by the insurer, against the total number of claims being filed by policyholders with the company, for a particular year. The higher the ratio is, the more favorable it is for the insurance provider, as it denotes the trust-ability of the company.
|Life Insurers||Claim Settlement Ratio 2019-20|
|Max Life||99.22 %|
|Tata AIA||99.06 %|
|Pramerica Life||98.42 %|
|Exide Life||98.15 %|
|Canara HSBC OBC||98.12 %|
|Reliance Nippon||98.12 %|
|Bajaj Allianz||98.02 %|
|ICICI Prudential||97.84 %|
|Life Insurance Corporation of India (LIC)||96.69 %|
Things to look at while choosing the Best Term Life Insurance Companies India
There are certain important factors that determine a life insurance company to become the best in the nation.
They are listed as follows:
1. Does it fit your needs: Do you require the best term plan or a money-back insurance policy or a ULIP policy? Prior to deciding whether you want to purchase any insurance plan, you have to know the reason behind it. Examine your present way of life and talk to your spouse about the future needs and goals, aspirations, and so on. With these facts, you’ll be capable of selecting the best insurance plan from the best life insurance company in India that fits with the current flow of life.
2. Understand the Policy features: When you’ve narrowed down your choices of the probable list of plans that are available suiting your needs, be sure to take time and understand the policy’s features, benefits, pros, and cons yourself. Don’t just rely on the information provided by the insurance company or your friends. With all the information regarding a policy readily available on the website of the insurer, it is easy nowadays to gather the required details. You can also search for the online reviews of the policy to get more information on the desired policy.
3. Riders: Riders and add-ons can be useful to expand the overall protection of the base insurance policy and to be able to handle the higher risk of your life, while you are alive. While these add-ons are available at an extra cost, they can help you avoid purchasing more individual policies to cover multiple risks. The most popular types of riders include Accidental Death Cover, Accidental Disability Cover Premium Waiver Cover Critical Illness Cover and Terminal Illness Cover, etc. All the top life insurance companies in India offer different types of riders to the policyholders
4. Look for Claim Settlement Ratio (CSR): The Claim Settlement Ratio for an insurance company must be an important key parameter when selecting your most suitable insurer. It is the number of claims that are paid by insurers over one year, in relation to the total amount of claims accepted by the company. A high CSR indicates that the insurer has cleared the claims on time and is seen as a trusted name in claim settlements. Whereas, a low CSR means the claims are not settled or consistently rejected. It is always good to take up insurance from an insurance provider that has a decent CSR score, which ensures your insurance needs are properly taken care of.
5. Benefits from Taxation: The best term insurance plan not only improves the financial situation of your dependents but also provides tax savings on all the premiums that you’ve paid over a period of time. Section 80C and the Tax Act 1961 provide tax exemptions up to Rs 1.5 lakhs for the premium paid. On the other hand, as per the Income Tax Act 1961, tax relief is provided for the maturity benefit or death benefit, received under section 10(10D) of the Income Tax Act 1961. Remember to read through all the policy documentation given in the documents, to learn about the specific tax advantages offered by the policy.
6. Benefits of Payout Options: If you are purchasing a life insurance policy then look for the flexibility offered in the benefits payout and compare the policy with all the other available ones. In case you believe that your family members don’t require the benefit amount as a lump sum, then it is possible to customize the policy so that they receive an income every month to cover the cost of living.
The Bottom Line
Before you start looking for the best term insurance plan, it is always suggested for you to take a look at the benefits and the trust factor of that particular policy. This can be understood by reading through the information available on their website. If required, you may also seek out the advice of insurance professionals and clarify your doubts before making a decision because this decision, once taken, cannot be changed in the future. But, do try to purchase the best term plan at a young age before you turn 40.