List of Best Term Insurance Companies in India 2023
Term insurance is an important investment. However, with the availability of so many insurers offering term plans, it becomes difficult to select the best term plan to suit your needs. Buying a term plan needs some consideration and research on the part of the policyholder. In this post, let us discuss the best term insurance providers in India.
Why Buy a Term Insurance Plan?
The prime reason for anyone to buy a term insurance plan is to arrange for financial security for the family that depends financially on you in case of an unfortunate death of the bread earner for the family. Moreover, it comes with some optional benefits in the form of additional riders offering coverage for accidental death and instances of critical illness.
What to Look for in the Best Term Insurance Company in India?
Before tagging any term insurance company as the best one, it is important to know about the factors that make it the most reliable term insurance company in India. So have a look at the main factors to look for in a best-term insurance company in India:
1. Claim Settlement Ratio or CSR:
It is the most crucial factor to consider when choosing a term insurance company. It is the ratio that shows the efficiency of an insurance company to settle the claims for the policyholder.
2. Claim Settlement Process:
Not just the CSR, but also check the claim settlement process before buying a term insurance plan from a company. It is the procedure that reveals whether the customers have a tough time getting claims from an insurance company or was it like a cakewalk for them.
3. Customer Care:
It is equally important to buy a term insurance plan from a company that has good customer care support. It is because, only good, friendly, and knowledgeable customer support can help you get the answers to all your queries regarding the policy.
4. Rider Benefits:
Do check for the availability of rider benefits that come along with the term insurance plan on an extra payment. Some rider benefits that come with a term insurance plan are critical illness rider, accidental death benefit rider, waiver of premium rider, and so on.
5. Persistency Ratio:
It is a ratio that reveals the total number of customers paying regular premiums and for how long are they enjoying the term insurance plan of the company. It indicates the satisfaction level of the customer with the insurance company.
6. Solvency Ratio:
The solvency ratio of a term insurance company hints at the financial status of the insurer. A company with a good solvency ratio means it can meet your urgent claims because it has enough funds to solve them.
Top 10 Term Insurance Companies in India Based on Claim Settlement Ratio
Here is a list of the top 10 term insurance companies in India for 2023 based on the CSR values:
| Term Insurance Company | Claim Settlement Ratio (2021-22) |
| Max Life Insurance | 99.34% |
| Bharti AXA Life Insurance | 99.09% |
| Aegon Life Insurance | 99.03% |
| Bajaj Allianz Life Insurance | 99.02% |
| Kotak Mahindra Life Insurance | 98.82% |
| LIC Life Insurance | 98.74% |
| Aditya Birla Life Insurance | 98.07% |
| HDFC Life Insurance | 98.66% |
| Tata AIA Life Insurance | 98.53% |
| ICICI Prudential Life Insurance | 97.82% |
Best 10 Term Insurance Companies in India 2023
Here are the key features of the best 10 term insurance companies in India:
1. Max Life Insurance
- Claim settlement ratio of 99.34%
- Varied options to pay premium payments
- Affordable premiums for high coverage term insurance plans
2. Bharti AXA Life Insurance
- Claim settlement ratio of 99,09%
- Over 250 branches PAN-India
- Anytime customer care support
3. Aegon Life Insurance
- Claim settlement ratio of 99.03%
- Higher coverage at low premium rates
- Excellent online claim support
4. Bajaj Allianz Life Insurance
- Claim settlement ratio of 99.02%
- New-age features with online facilities
- Multiple payment options for premiums
5. Kotak Mahindra Life Insurance
- Claim settlement ratio of 98.82%
- Flexible plan options
- Excellent customer care support
6. LIC Life Insurance
- Claim settlement ratio of 98.74%
- Best customer care service
- Option to claim through an e-service portal
7. Aditya Birla Life Insurance
- Claim settlement ratio of 98.07%
- Easy option to get the claim online in simple steps
- Part of the prestigious Aditya Birla Capital Ltd.
8. HDFC Life Insurance
- Claim settlement ratio of 98.66%
- Over 370 branches PAN-India
- Awarded as the Super Brand for FY22-23
9. Tata AIA Life Insurance
- Claim settlement ratio of 98.53%
- 4-hour claim settlement
- 40 critical illness benefit
10. ICICI Prudential Life Insurance
- Claim settlement ratio of 97.82%
- Comprehensive benefit options
- Affordable premiums for high insurance coverage
Frequently Ask Questions
To figure out the best term insurance plan in India for yourself, check the following factors:
~ Claim Settlement Ratio of the Company
~ Sum Assured
~ Maturity Age
~ Riders
~ Tax Benefits
Yes, you can purchase a term insurance policy online from the ease of your home. However, we suggest researching everything related to the policy online or visiting the branch before buying a term insurance plan online.
The best age to buy a term insurance plan is in your 20s because it is a young age, and you can easily pay the premiums because you don’t have too many liabilities or expenses.
Yes, you can purchase 2 term insurance plans in India, but better be aware of the terms and conditions of both plans carefully before investing in them. Holding multiple-term insurance plans may make you eligible to enjoy different benefits from different insurance providers.
As per the FY 2021-22, Max Life Insurance emerged as the best-term insurance company with a claim settlement ratio of 99.34%. The second-best term insurance comes from Bharti AXA life insurance with a whooping CSR of 99.09%.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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