Best Term Insurance Companies in India 2024

By Okbima 30 Oct 2023 156
best-term-insurance-companies

 

Always buying a term insurance plan from the Best Term Insurance Companies In India is a great way to protect your family from the unfortunate events of your death. The best term insurer can help to secure enough coverage to replace your debts, income, or necessary expenses such as education of the children or caring for aged parents.

In this blog, we have compiled a list of the best term insurance companies in India in 2024 that will help you buy the best plan from the best company.

 

What is Term Insurance Plans? 

Term Insurance is a protection plan that provides life coverage for a fixed period. You can buy a term plan to secure the future financial expenses of your family. In this type of life insurance, companies give a death benefit to the policy nominee in the case of unfortunate demise of the life assured.

This plan does not provide the maturity benefits to the policyholder who completes the policy term. However, you have the option to claim a maturity benefit by purchasing a return of premium rider to your base term insurance plan.

 

What is the Best Term Insurance Companies in India 2024?

The best insurance company depends on various factors like your needs, financial situation, where you live, and more. You should research and compare different insurance companies and their plans to find the one that fits you best.

 

Top 10 Best Term Insurance Company in India Based on Claim Settlement Ratio 2021-22

In India, there are Top 10 Term insurance companies that offer best term insurance plans, according to the IRDAI Annual Report. If you want to buy a term insurance plan from a top company, you should look at the IRDAI CSR values for the years 2021-22. It's a good idea to compare term insurance companies in India. It is important to look for the claim settlement ratio (CSR) to buy the best term insurance policy from the best companies and that is mentioned below:

 

Term Insurance Company

Claim Settlement Ratio 2021-22

 

Max Life Insurance

99.34%

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Aegon Life Insurance

99.03%

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Bharti AXA Life Insurance

99.09%

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Bajaj Allianz Life Insurance

99.02%

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Kotak Mahindra Life Insurance

98.82%

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Tata AIA Life Insurance

98.53%

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Aviva Life Insurance

98.39%

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Aditya Birla Sun Life Insurance

98.07%

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PNB MetLife Insurance

97.33%

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Ageas Federal Insurance

97.03%

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How to Choose the Best Term Insurance Company in India?

The term insurance plan helps your family become financially free after you pass away. You should look for the right insurance that offers comprehensive coverage at low premium rates. However, before buying a term insurance plan, do proper research and identify your insurance needs. Below some of the factors are mentioned that you should look at before choosing the best term insurance company in India:

 

Claim Settlement Ratio

This ratio shows the number of claims settled by a company in a fiscal year against the total number of claims registered and shows the reliability of the company. Look for a company that has a high value of CSR, as it represents the loyalty of the company, and make sure that it is easy for your dependents to claim the insurance in case of your absence.

 

Solvency Ratio

The solvency ratio of any insurer company shows the financial capability of the company in the case of a need arises. The IRDAI set criteria to maintain the solvency ratio of 1.5 for continuing to sell the insurance plans. 

You should look for a company that has at least more than a 1.5 solvency ratio, so the company has more possessions and fewer liabilities. This factor also shows the company has sufficient funds to approve its claim settlements.

 

Persistency Ratio

The persistency ratio is a measure of the number of term insurance plans that receive regular premium payments during a financial year compared to the total number of currently active plans. 

This ratio provides valuable information about the rate of customers who consistently make premium payments and the duration for which they remain with the company. In simple terms, you should look for the persistency ratio that serves as an indicator of the company's customer satisfaction.

 

Rider Availability

Term Riders are supplementary benefits that insurance companies offer when purchasing term insurance plans. These riders expand the coverage for an additional cost. It is recommended to choose an insurance provider that offers riders or allows policyholders to attach them to the base policy. Some term insurance riders offer accidental death benefits, waivers of premiums, critical illness, accidental total permanent disability, terminal illness, and hospital benefits.

 

Customer Care

When purchasing a term insurance plan, the quality of customer service is an important factor to look for.  It's recommended to choose an insurance company that provides excellent customer care and has an experienced expert team. When selecting a term plan, you need to ensure that there is a 24/7 customer care service available to address their inquiries and offer assistance as needed.

 

Claim Settlement Process

It is important to review the claim settlement process of term insurance companies in India. If you choose a term plan from a company with a complex claim settlement procedure, your family may face difficulties when attempting to process claims in the event of your passing. 

Therefore, if you buy term insurance plan from a company with an easy and quick claim settlement process, your family can easily get the claim amount.

 

Best Term Insurance Plans Based on Claim Settlement Ratio 2021-22

Here are the top 5 best term insurance plans with their company, entry and maturity age, and their policy term that you can look for when making the buy decisions.

 

Insurance Company

Best Term Plan in India

Entry Age (Min-Max)

Maturity Age (Min-Max)

Policy Term

Max Life Insurance

Max Life Smart Secure Plus

18-60 years

85 years

10 to 67 Years

ICICI Prudential Life Insurance

ICICI Prudential iProtect Smart

18-65 years

99 years

5 years to Whole Life 

HDFC Standard Life Insurance

HDFC Life Click 2 Protect Super

18-65 years

85 years

10 years (till the whole of life)

Bajaj Allianz Life Insurance

Bajaj Allianz e-Touch Online Term Plan and Health Cover

18-55 years

99 years

10 to 99 minus age at entry


 

LIC

LIC e-Term Insurance Plan

18-60 years

75 years

10-35 years


 


 

Benefits of Choosing A Term Insurance Company 

There are many benefits that you will get after buying a term insurance plan and here we mentioned some of these:

Affordability

Term insurance is typically more budget-friendly compared to permanent life insurance policies. This affordability is attributed to its simplified structure and the absence of cash value accumulation. As a result, term insurance becomes an accessible choice for individuals seeking extensive coverage without imposing a significant financial strain.

 

Customisability

Term insurance companies provide policyholders with flexibility in policy duration and coverage amounts. This adaptability allows policyholders to customize their coverage to align with their requirements, such as replacing income or securing funds for their children's education.

 

Financial Security

The fundamental goal of term insurance is to provide financial security to beneficiaries for the unfortunate event of the policyholder's premature passing. Term insurance ensures that your family is protected from financial burdens.

 

Simplicity

Term insurance policies are known for their simplicity, which makes them more accessible to individuals who are new to insurance concepts. This helps in the ease of the application process and the simplicity of premium payments.

 

Tax Benefits

A term life insurance policy offers the potential for tax savings of up to Rs. 1.5 lakh on the premium amount, as per section 80C of the Income Tax Act. Furthermore, the lump sum payout obtained from a term insurance plan is exempt from taxation under section 10(10D) of the same Act.

 

Factors to Consider When Choosing the Best Term Insurance Company 

Look for the given below factors before buying a term insurance plan that will help your family to get the all benefits in the future:

Riders

Insurance companies offer a range to the policyholders. These additional features, known as riders, can include a return of premium benefit, a critical illness benefit rider, a waiver of premium rider, and more. It's worth noting that policyholders may need to pay an additional premium to include these riders in their base-term insurance plan.

 

Customer Support

Another important factor to take into consideration is customer support. It's necessary to verify if a term insurance company offers online assistance to its policyholders. Access to e-support services provided by the company can significantly ease your interactions and save you valuable time.

 

Claim Settlement Duration

Look for the claim settlement process provided by various insurers. Many term insurance companies offer 2-hour claim settlement services to policyholders. Therefore, it is advisable to compare and opt for a provider that ensures a simple easy claim settlement process when buying a term insurance plan.

 

How To Buy the Best Term Insurance Plan From Okbima? 

In the given below you can buy the best term insurance plan in India online with the help of Okbima:

Step 1: Go to the term insurance page and fill up the required details in the form.

Step 2:  Now, “compare plans” and select the most suitable from the best term insurance company in India.

Step 3: Choose your sum assured amount and premium term, and then proceed to pay.

 

Conclusion:

In conclusion, choosing the best term insurance companies in India is a smart decision to save your family in the future from financial burdens. There are some factors that you have to consider before buying any term insurance plan such as claim settlement ratio, customer service, affordability, etc. Therefore, do research and identify your needs to buy the best suitable plans for you and ensure that the company has an easy process to claim the term insurance.

 

FAQs

As per the CSR (Claim Settlement Ratio) for the Financial Year 2020-21, the best-term insurance company is Max Life Insurance Company. 

Yes. You can buy a term insurance policy online as major term insurance companies offer both online and offline processes.

It varies from company to company but as per the IRDAI guidelines, every insured should settle a claim within 30 days.

Ans: Some of the best-term insurance companies in India are LIC, HDFC Life, Max Life, ICICI Prudential, and SBI Life.

Max Life Insurance has the highest claim settlement ratio of 99.34% in the year 2021-2022.

Yes. LIC is a good option for term insurance policies.

Yes. You can buy 2-term insurance as it is legal in India.

There are 24 insurance providers available in India and authorized by the IRDAI for selling term policies. 

Rs. 5,000 to Rs. 20,000 per month, depending on the sum assured, age, and the chosen investment fund.

If you are under the age of 55, you can take a cover of 10 to 12 times your gross annual income.

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