Best Life Insurance Companies in India 2024

When choosing one of the best life insurance companies, consider the following factors to ensure you are selecting a company that can provide support when you need it most:

• Claim Settlement Ratio (CSR): The Claim Settlement Ratio of life insurance companies indicates the percentage of claims settled by them compared to the total number of claims received by the company in that same financial year. One must always choose a life insurance provider with a high CSR as it suggests that the company is more likely to pay the claim in case of a covered loss.
• Solvency Ratio: The solvency ratio is a measure of an insurance company's ability to cover its liabilities with its available assets. It is a significant metric for not only policyholders but also for regulators and investors because it displays the company's financial stability and strength. A high solvency ratio shows that the life insurance company is well-capitalised to handle potential losses.
• Sum Assured: Sum assured is the amount of money that the insurance company guarantees to pay in the event of the insured person's death or another specified event such as critical illness, accident, or disability. Always remember that Sum Assured is the core benefit of every term insurance policy and should be chosen in a way that covers the financial obligations of you and your family.
• Assets Under Management (AUM): AUM represents the total market value of assets managed by the insurance company. The metric reflects how financially stable and capable the life insurance company is, which in turn affects the insurer's ability to pay claims.
• Amount Settled: This refers to the total amount of money paid out by the insurance company as claim settlements to policyholders or beneficiaries. It's an important indicator of the company's commitment to fulfilling its promises and providing financial support to its customers.
• Customer Reviews and Ratings: Customer reviews and ratings will provide insights into other policyholders' experiences with the insurance company. Positive reviews and high ratings indicate that the insurer is good, whereas negative reviews may raise concerns about the insurer's reliability and customer service. So, it's imperative to check reviews and ratings before making a decision.
• Customer Support: Customer Support is all about how well the insurance company helps its customers with things like policy questions, claims, and general support. A good customer support service always improves the policy experience and builds trust with the insurer.

Solvency Ratio is a measure of an insurance company's financial strength. This ratio indicates whether the life insurance provider has enough assets to cover its liabilities, especially the claims that may arise from policies it has issued.

This ratio is calculated by comparing an insurance company's available assets with its liabilities. Please note that insurance regulators often impose a minimum solvency ratio requirement of 1.5 to ensure that insurance companies can meet their financial commitments to policyholders. A high solvency ratio indicates that an insurance company is financially stable and capable of fulfilling its promises to policyholders, even during adverse economic conditions.

Top 10 Life Insurance Companies in India with Highest Solvency Position

The solvency position of the top 10 life insurance companies in India is tabulated below for the FY2022-23, bifurcating it further for June’22, September’22, December’22, and March’23.

NOTE: For better accuracy, the data has been furnished from the official IRDAI website.

A Claim Settlement Ratio, often abbreviated CSR, of a life insurance company tells us how many claims the insurer has successfully settled compared to the total number of claims they have received in a year.

For example, if XYZ company gets 100 claims in a year and they settled 96 of them properly, their CSR would be 96%.

When you're buying a policy, you must always choose an insurance company with the highest CSR. This way, there are high chances that your beneficiary will get the benefits from your life insurance policy.

Claim Settlement Ratio (CSR) = Total number of claims settled in a year/ Total number of claims received in a year) X 100

Number of Products refers to the different types of life insurance plans available. Each term insurance product comes with its unique features, allowing individuals to choose the one that aligns best with their long-term financial plans and protection needs.

Riders are the supplementary features that individuals can add to their base life insurance policies in order to get enhanced benefits. These riders function as optional add-ons, allowing policyholders to customise their coverage to meet specific needs or preferences.

Linked premiums are connected to insurance policies that include an investing component. In linked premiums, a portion of the premium paid by the policyholder goes towards providing life cover, while the remaining amount is invested in various investment funds chosen by the policyholder. The performance of these investments determines the value of the policy over time.

On the other hand, Non-linked premiums are associated with traditional insurance policies where the premium paid by the policyholder is not directly linked to any investment component. Instead, the entire premium goes towards providing life cover and other benefits specified in the insurance policy.

NOTE: Traditional Guaranteed Investment Plans also fall under the non-linked category. These plans are not linked to the market and are safe and guaranteed.

Top 10 Life Insurance Companies with Highest Linked & Non-linked Premium

As per the IRDAI Annual Report for the FY 2022-23, the Total Linked, Total Non-Linked, and Gross Total Premiums of the top 10 life insurance companies in India are represented in a tabular format below:

NOTE: For better accuracy, the data has been furnished from the official IRDAI website.

Assets Under Management (AUM) in life insurance refers to the total value of funds that an insurance company manages on behalf of its policyholders within its investment portfolio. These assets typically include premiums paid by policyholders, as well as any returns generated through investments made by the insurance company.

For policyholders, understanding the AUM of the life insurance company is important because it reflects the company's financial strength and ability to effectively manage investments.

The sum assured in a life insurance policy refers to the guaranteed amount of money that the insurance company promises to pay to the policyholder's nominee in case of the policyholder's death.

The sum assured is specified by the policyholder at the time of policy issuance and is typically based on factors such as the policyholder's financial needs, future expenses, and desired level of protection for their dependents.