Life is an unpredictable and an uncertain saga wherein you never know where the story comes to an end. With the increasing mortality risk, we can just never anticipate who death will embrace next. Life insurance is one such policy which at least tries to nullify the void to a certain extent, so that the deceased’s death does not affect those around him.
Read on to learn more about the top ten insurance companies in India.
What is Life Insurance?
Life insurance, basically, is a contract maintained between the insured and the insurance company wherein the latter will provide the former with a certain sum of money (sum assured) in case the insured passes away due to an unfortunate accident or otherwise. To maintain this contract, the insured needs to pay a pre-decided sum of money (premium) to the insurance company.
To make things simple, Life insurance is an umbrella to protect the best interests of the insured’s family when he/she is no longer around.
Why Choose Life Insurance?
Life insurance provides a financial security to our loved ones when we are no longer around. And, given the unpredictability of life, it is important to have such kind of security. It provides us with the necessary peace of mind knowing that the welfare of our family is ensured even in our absence. Besides, it also serves as an investment tool as it is designated to provide an additional source of income to the insured during his lifetime.
The List of Top Ten Insurance Companies
India is a home to a total of 24 Life insurance companies in India and the market for insurance is huge in India. Below is the complete list of the best insurance companies in India.
Life Insurance Corporation (LIC) India Company
It is one of the oldest insurance company in our country. It is a state owned insurance group and offers a range of insurance products to its customers. It offers life insurance plans, pension plans, child insurance plan, unit linked plans, special plans and group schemes. It has a claim settlement ratio of 98.19% with maximum grievances settled over a year.
ICICI Prudential Life Insurance Company
One of India’s leading private sector bank, it provides an array of products like Term Plan, ULIP plan, Pension plan, Child plan and Investment plan.
HDFC Standard Life Insurance Company
A joint venture between Housing Development Financial Corporation Ltd. and Standard Life Plus, it is one of the leading insurance firms in India. It has 27 retail and 8 group products in the portfolio. It provides an array of individual and group insurance solutions like women plan, protection plan pension plan, saving and health plan, child plan. It has 414 branches in 900 cities and towns in India and a claim settlement ratio of 95.02%.
SBI Life Insurance Company
A joint venture between State Bank of India and BNP Paribas Cardif, it is currently the biggest private sector company in India. It offers variant plans like the saving plan, unit link plan, protection plan, child plan and pension plan to cater the need of the individuals. It has claim settlement ratio of 95.70%.
Max Life Insurance Company
Max Life Insurance has a strong track record of 15 years and has a claim settlement ratio of 96.23%.
It is a joint venture between the European financial services company Allianz SE and Bajaj Finserv Limited. The company has gained a name as one of the most popular insurance brands in India, it is a one stop solution for people to help in aiding their financial goals.
Birla Sun Life Insurance Company
With a staggering 2.5 million customer base, the Birla Sun Life Insurance is one of the leading insurance companies in India, and is a joint venture between Aditya Birla Group and Sun Life Financial Inc. It offers plans like protection plan, child plan, health and retirement solution, ULIP plan etc and has a claim settlement ratio of 88.45%.
Reliance Life Insurance Company
One of India’s largest life insurance firms, it offers comprehensive plans like retirement, children, protection, investment and health plan. It has a claim settlement ratio of 95.01%.
Kotak Mahindra Life Insurance Company
It is a rapidly growing company that has a 4 million base of policyholders nationwide. Prioritising their customers, the company provides a much affordable range of term plan, ULIP plan, child plan, saving plan, investment plan and retirement plan.
PNB Met Life Insurance Company
This company has 1800 corporate clients in India and is spread over 150 different locations in the country, and is known for its protection and retirement products. There are several other plans as well such as child plan, saving plan, ULIP plan, monthly income plan and money back plan that’s offered to the customer.
Life Insurance Plan Gets You Maximum Security
Nearly every life insurance plan comes with a maximum security coverage, though of different types. There are six kinds of life insurance plans, viz. Term plans, Life insurance plans, Unit Linked Insurance Policies (ULIPs), Endowment Policies, Whole Life Policies, Pension plans, Money Back Plans.
These plans provide life cover for a fixed period of time, they can be either long-term or short-term plans, ranging from a minimum of 5 years to a maximum of 60 years in certain cases. The individual stays protected during this term, and the sum assured is paid to nominee post his/her death during the policy term. No sum is given if the insured dies after the term.
- Unit Linked Insurance Plans
It provides protection plus returns and are linked to market products like mutual funds, bonds, stocks etc. A certain portion of the premium deposited by the insured goes into market units and the rest of the portion is kept aside for the base sum assured. It is a smart investment option for those looking to both get a life cover and invest into financial instruments as well.
- Endowment policies
An endowment policy plan serves a dual purpose of offering both a life cover and a saving instrument for the future. They attract a higher premium than regular term plans, and the basic sum assured for it is kept separate and the other portion is kept as an investment tool.
- Whole Life Policies
As the name implies, it offers protection for the entire lifetime of the insured. These can be in the form of investment cum insurance. The maturity benefit is provided when the policyholder attains the upper age limit and the maturity benefit is provide on the demise of the policyholder.
- Pension Plans
Pension plans are for people looking to secure their retired life. They are mostly single premium policies, where a lump sum amount is paid to the insurer. Generally, once can choose the amount of pay-outs they wish to receive and it is paid throughout their lifetime.
- Money Back Plans
These are a subset of endowment plans which provide a survival benefit to the policyholder. The death benefit is payable on the demise of the policyholder, and the survival benefit is paid if he/she survives for a certain period of time.
These plans don’t invest in market instruments but give out regular pay-outs. Therefore, there is no risk factor associate, with the survival benefit paid until the maturity of the policy. These plans are popular liquid plans.
Best Coverage from Life Insurance
The best coverage, however, is provided by Term Insurance because it provides the beneficiary with the death benefit if the insured dies during the policy term. The death benefit can be paid as lump sum amounts or in instalments. It is easily the best coverage there is because it not only helps the deceased family in the event of a financial crisis, but also can help to pay off loans and debts if it arrives in the form of lump sum money.
We almost certainly get confused when we are provided with myriad options at once, but having more than one option when choosing life insurance will be an added benefit wherein you can do your own market research to buy that one life insurance policy. Websites like Coverfox.com are extremely customer-centric and provide you with policies within few minutes of your transaction.