Top 10 Life Insurance Company in India – How to Choose Life Insurance Company in India

Top 10 Life Insurance Company in India – How to Choose Life Insurance Company

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If you have experience travel in a plane; before takeoff plane crew member does some announcement about safety guide. If you have noticed what they are saying, “If needed, oxygen masks will be released overhead, place the mask over your nose and mouth and slip the elastic band over your head. If someone who requires your assistance, secure your mask on first and then assist the other person.” What I am trying to tell you that your life is most important in your life. If you are alive then only you can help someone else. It doesn’t mean that everyone should react as selfish. Selfish is different, selfishness is bad but when it comes to your life than you need to take the right decision timely. Our life is so important not only for us because of our beloved once also.

A few years back, I was totally against Life Insurance. I was thinking, what is the use of this type of investment where I am investing today and others will enjoy after me. Sometimes I was comparing Life Insurance investment with Mutual Fund but I was wrong. I saw some incidents in my family and in the society which changed my thoughts. First of all your life is your life which is unpredictable and we never know what happened in the next moment so if we prepare something for the future; I think this is a great thought. Life Insurance can solve this type of problem. I think very soon, the government will mandate Life Insurance compulsory for all because your life is so important for your family, for your community, for your society, and your nation also.

How to Choose Life Insurance Company:

It is very difficult to choose Life Insurance Company especially for Indian people due to unawareness and lack of information. At present we have around 24 Life Insurance Companies in India and 33 are Non-Life Insurance Companies so it is very difficult to choose the best among them.

Many people choose their life insurance company based on their popularity and competitiveness while there are many other important factors to consider when making this important decision. Here are some other points to keep in mind when selecting a life insurance company:

  • Financial solidity: Select a company that is likely to be financially secure and sound who can pay your claim when you need it to. You need to do some analysis and talk to some of your knowns before selecting the right company.
  • Product: All Life Insurance Companies offer a wide range of policies with their benefits. So choose a company which products and features are best for you.
  • Advice and customer service: Life Insurance is a little bit complicated. Sometimes we all are prepared to purchase Life Insurance but it is difficult to find out which plan is best for us. For this reason, it can be very helpful to have access to a company representative with whom you can communicate effectively and who truly wants to answer your questions and address your concerns. Be sure there is a real live agent or a customer service representative number you can call when you need assistance.
  • Claims: You must check that the insurance company which you are considering is doing how much business and how much had consumer complaints about its service relative to the number of policies it sold. Consider the claim processing and claim clearing time also.
  • Premium: Premiums can vary widely among insurance companies, either because they have features that others don’t or because they simply charge more than others for the same coverage. You should compare policies is to make sure you compare similar insurance plans based on criteria that include your age, policy type, policy features, and how much life insurance you are looking at buying.

Buying a Life Insurance policy can be one of the most important financial decisions you’ll make, and it can also be one of the most complicated. Selecting the right policy by finding the right company will end with a good result.

Top 10 Life Insurance Company in India:

We have discussed some of the points where we can choose Life Insurance Company who can meet our needs. Choosing the best insurance companies in India is as important as getting an insurance policy. Otherwise, you bear the loss of premiums paid plus the non-payment of sum assured. Here is a list of top 5 Life Insurance Companies in India where you can choose the best one.

  1. Life Insurance Corporation of India (LIC): LIC is one of the oldest and largest Life Insurance Company in India which was founded in 1956 with an estimated asset value of ₹3,111,847 Crore, (US$450 billion). More than 250 million lives are part of LIC. LIC has a claim settlement ratio of 98% which is the highest percentage among all the other insurance providers. 
  2. ICICI Prudential Life Insurance: ICICI Prudential is among the first private companies that began insurance by 12th December 2000. It is promoted by ICICI Bank Prudential Corporation Holdings Limited. ICICI Prudential Life Insurance is the second-best life insurance companies in India. As of 2015, it reported assets of over ₹100,000 Crore. Claim Settlement Ratio of ICICI Prudential Life Insurance is 96.68%. 
  3. SBI Life Insurance: SBI Life Insurance Company is a joint venture between India’s largest bank State Bank of India and the leading global insurance company BNP Paribas Cardiff. Of the total capital, SBI owns about 74% and BNP Paribas owns the remaining 26%. SBI Life Insurance is the third top life insurance company in India. SBI Life Insurance Company has a claim settlement ratio of 96.69%. That is 13,303 claims have been paid by this life insurance company till present.
  4. HDFC Standard Life Insurance: HDFC Standard Life Insurance Company ranks at the fourth top life insurance company in India. It is joint ventures between Housing Development Finance Corporation Ltd (HDFC) and Standard Life PLC, a leading provider of financial services in the United Kingdom. In this venture, HDFC Ltd holds about 74% equity and Standard Life Ltd. holds about 26% equity. Claim settlement ratio of HDFC Standard Life Insurance is 97.62%.
  5. Max Life Insurance: Max Life Insurance is a joint venture between Max India Ltd and Mitsui Sumitomo Insurance Co. Ltd Mitsui Sumitomo Insurance Co. Ltd is a member of MS&AD Insurance Group, which is one of the top general insurers in the world. Max Life Insurance Company ranks at the 5th top Life Insurance Company in India. The claim settlement ratio is close to 97%.
  6. Bajaj Allianz Insurance: This is a joint venture between Bajaj Finserv Limited and Allianz SE, Germany. Bajaj Allianz Company ranks in the sixth position in the list of top insurance companies in India. Claim Settlement Ratio of Bajaj Allianz Life Insurance Company is 91.67%.
  7. Birla Sun Life Insurance: The first insurance company to introduce Unit Linked Plans to the insurance sector. It is a joint venture company between Aditya Birla Group and Sun Life Financial Inc. Sun Life Financial is a well renowned international financial services organization in Canada. Claim Settlement Ratio of Birla Sun Life Insurance Company is 94.69%.
  8. TATA AIA Life Insurance: Tata AIA Life Insurance Company Limited is a leading joint venture company, formed by Tata Sons Ltd. and AIA Group Ltd; the largest independent listed pan-Asia life insurance company in the world. Claim Settlement Ratio of this life insurance company is 98%.
  9. Reliance Nippon Life Insurance: Reliance Nippon Life Insurance Company is a joint venture of Reliance Company (51%) and Nippon Life Insurance, Japan (49%). Claim Settlement Ratio of this life insurance company is 97.71%.
  10. PNB Metlife India Insurance: PNB Metlife India Insurance is one of the best life insurance companies in India. This life insurance company is a joint venture between Punjab National Bank and Metlife companies. Punjab National Bank is an established name in the banking industry of India and MetLife, Inc., the US is the holding corporation for the Metropolitan Life Insurance Company. Claim Settlement Ratio of this life insurance company is 87.14%.

These are plenty number of various other insurance companies too in India which provide good services and products. Selecting a policy according to your priority with the best provider is a very crucial decision. It definitely would help your family when they face a crisis in your absence. So take decisions wisely when selecting a policy and Life Insurance Company.

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