Top 10 Life Insurance Companies in India 2023
Created on 06 Nov 2020
Wraps up in 7 Min
Read by 9.1k people
Updated on 24 Dec 2022
Uncertainties are part of life and can be seen everywhere. There would hardly be any situation where any happenings are sure to be 100% certain. Even the small events around us are riddled with some scepticism.
Who will win the IPL, whether it will rain today, what will be today's dinner, etc. these are some of life's regular questions, the answers to which are only predictable and cannot be certain.
However, there are some major scenarios where we are forced to anticipate what might happen in the future, and accordingly, safeguard ourselves. One such major safeguard is insurance.
It is just another way through which we could try to manage the unforeseen future. Insurances are everywhere; from insuring mobile phones and cars to insuring overall health and life, so much can be insured for the future.
However, nothing is more important in life than life itself. And just like other things, our life is also unpredictable. The hardest reality is that it has to end at some point, and an individual's demise could take place anytime.
This is what makes a lot of people worry and makes them think, "What would happen to my family after I die?"
And for this purpose, a type of insurance can help the deceased person's family monetarily. This insurance is known as a life insurance policy.
So, let's have a deeper dive into this to have a closer understanding of the life insurance policy.
What is a life insurance policy?
Life insurance also called life assurance, is a contract between an insurance policyholder or occupant and an insurer or assured. Here, the insurer guarantees to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the casualty of an insured person (also known as the policyholder).
The policyholder or the insured person generally pays a premium, either regularly or as one lump sum. The basic benefits of these insurance policies are:
- Financial Security: Even when the person passes away, the insurance policy helps the family of that insured person to have financial protection.
- Death Benefits: The family of the policyholder are provided with a death benefit by the life insurance companies in case of the demise of the policyholder. If the policyholder outlives the policy terms, no payout is made.
- Savings from tax: When the premiums are paid, a tax deduction of up to Rs.1.5L is available under Section 80C of the Income Tax Act.
But claiming life insurance is not as easy as it seems to be. There are some formalities that are to be fulfilled. But this is the later part. The very first thing that comes to mind is choosing the company from which the life insurance policy has to be taken from.
To ease your dilemma, here we have provided a list of top 10 life insurance companies.
Top 10 life insurance companies
A thorough analysis of the following insurance companies might help you figure out which company is best suited for you.
1. LIC – Life Insurance Corporation of India
Presently, there are 24 life insurers present in India. And among these 24 providers, LIC has made its position at the top. It is the only public sector company of life insurance in India.
This government entity came into existence in the year 1956, and hence is also one of the oldest insurance companies in India. The company is well-known for its motto, which says "Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi".
LIC's main potency lies in the faith it has created among the Indian masses. Apart from the fact that it is a government agency, LIC's popularity in the country is also due to its well-established dignity and trust for over half a century.
The total assets of LIC under the management is Rs. 3,111,847 crores (USD 450 billion). The ratio of claim settlement of life insurance policies provided by this company is 97.79%. LIC is known to have a record of securing over 250 million life insurance solutions till date.
The Max Life Insurance Company was founded in 2000 and is a joint venture between the Indian company Max India Ltd, and a Japanese insurance company named Mitsui Sumitomo Insurance Company.
It is the largest non-bank private sector insurance company in India. Very low premium rates are one of the major reasons for its success in the Indian market. Under management, the company has assets over Rs. 50,000 crores.
With its high-quality client assistance via a strong online presence, a wide portfolio of products, multi-distribution channels, and 1090 offices across the nation, Max Life has amassed a customer base of more than 30 lakhs. The claim settlement ratio possessed by Max Life Insurance Company is 98.74%.
3. Bajaj Allianz Life Insurance
In the year 2001, Bajaj Allianz Life Insurance Company was founded. Like Max Life, this insurance company is also a joint venture of Bajaj Finserv Limited of Bajaj Group and a German company, Allianz SE.
This company is prominent for its creative and innovative products, and also for the timely customer service provided through its 759 branches spread across the nation. Bajaj Allianz Life Insurance has a claim settlement ratio of around 95.01%.
Founded in 2006, Bharti AXA Life Insurance is a joint venture between Bharti Enterprises and AXA Group which is a French multinational insurance firm.
Since then it has formulated a dispersion network across 123 cities in the country and also has a tremendous base of customers which is more than 1 million. The company has a claim settlement ratio of 97.28%.
Tata AIA Life Insurance Company is considered as one of the most reliable life insurance companies in India. It is a joint venture between Tata Sons Private Limited and AIA Group Limited and is Asia's biggest insurance group.
The company's resilience has been in the established position of Tata as a valid brand in the Indian market, along with AIA being the biggest independent insurance group in the whole world, crossing 18 markets in the Asia Pacific.
In 2019, under its management, Tata AIA Life Insurance Company's assets are Rs.28,430 crores. The Claim Settlement Ratio of Tata AIA life insurance company is 98%.
6. HDFC Standard Life Insurance
The largest private sector bank of India, HDFC, is also a popular life insurance company in India. Established in 2000, HDFC Standard Life Insurance company is a joint venture between HDFC Ltd, India's biggest financial institution, and Standard Life Aberdeen, a global investment company.
With time, it went on to evolve as one of the most respected life insurance providers in the nation. HDFC Life makes its services easily available to the customers via its 412 branches in the country along with its very strong digital platform. The claim settlement ratio of HDFC Standard Life Insurance is 99.04%.
7. ICICI Prudential Life Insurance
Since its establishment in 2000, ICICI Prudential Life Insurance Company has conserved its stature as one of the most extensive and vastly recognized insurance companies in the nation. The insurance company of ICICI is a joint venture between ICICI Bank and Prudential Corporation Holdings Limited.
ICICI Bank holds a 74% stakeholding and Prudential holds a 26% stake in this joint venture. Its customer-centric approach and powerful and influential bancassurance and distribution channels have led it to become the second-best insurance company in the entire nation.
The total assets under the management of this company are Rs. 1,604.10 billion, with a Claim Settlement Ratio of 98.58%.
SBI life insurance is one of the most successful and reliable life insurance companies in India. SBI Life Insurance is a joint venture between India's largest bank, State Bank of India and the leading global insurance company BNP Paribas Cardif, a French multinational bank and financial services company.
It was established in the year 2001. Today, it is a well-known insurance company in the entire nation. The authorized capital of SBI life insurance company is USD 290 million, and its claim settlement ratio is 95.03%.
9. Aditya Birla Sun Life Insurance
Aditya Birla Sun Life Insurance Company was founded in the year 2000. This company is a joint venture between Aditya Birla Group and Sun Life Financial, a Canadian financial services organization.
Aditya Birla Sun Life Insurance has a strong presence across the nation with 425 active branches and 9 bancassurance partners. It has a Claim Settlement Ratio of 97.15%.
10. Reliance Nippon Life Insurance
Reliance Nippon Life Insurance Company was created in the year 2001. It is a joint venture between Reliance Capital and Nippon Life which is known to be the largest Japanese Life insurance company.
In the year 2006, Nippon Life went on to acquire a 26% share in this insurance company. In 2011, Nippon went on to take up an additional stake in the company, making it the majority shareholder at 75%.
The company is known to have a powerful dispersion network of 727 branches across the nation. Reliance Nippon has assets of Rs.20,281 Cr under management and possesses a Claim Settlement Ratio of 99.07%.
The Bottom Line
A family is a factor that makes you want to become the best version of yourself. The loved ones around you are the actual well-wishers who help give wings to your dreams. Therefore, it comes out as a crucial responsibility from your side to take care of the needs of your parents, children, or spouses.
However, to be a prudent caregiver of your family, it is important that you take all the measures to secure them financially even when you are no more.
In today's times, with the pandemic, the climate change, the political uprisings and revolution, the world has become highly unpredictable. There is no guarantee of anything in life, and it becomes all the more important to not take life of yourself or of your loved ones for granted. Hence, life insurance policies do not come as an option but as a necessity and should be an integral part of financial planning for any individual.
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