Life Insurance Companies in India
Most people view life insurance policies as a form of investment. However, these plans also offer a significant payout upon the death of the insured individual.
Therefore, individuals with dependent family members need to opt for such contingency plans to ensure that their spouse, children, aged parents and siblings are financially secured, even in the event of unfortunate demise.
If a life insurance policyholder perishes during the plan’s coverage term, his/her family members can claim the death benefit.
Doing so will result in a lump-sum financial benefit, which the surviving family members can use to ensure a comfortable life. The various life insurance companies operating in India are responsible for providing these plans and settling claims when they are raised.
What is a Life Insurance Company?
A life insurance company is an organisation, which creates variegated life insurance policies for its customers. Policyholders pay a premium to the insurance company, which is determined by the sum assured for the chosen coverage, along with other benefits and factors. A life insurance company also needs to handle all claims, which its customers file.
Before extending the financial compensation after a claim is filed, life insurance companies need to verify all information and circumstances of a policyholder’s death. Death by accident or suicide is often excluded from life insurance policy coverage.
Thus, if a policyholder succumbs due to either of these reasons, his/her family members are disqualified from claiming death benefit from the insured life insurance policy.
The following are some of the common types of life insurance policies available in India:
- Unit Linked Insurance Plans
- Term life insurance
- Endowment plans
- Whole life insurance
- Money-Back policy
- Retirement plan
- Child plan
These are the seven different life insurance policy types, each of which is geared to meet various requirements and conditions.
You need to consider your current situation in life to determine which of the policies mentioned above is the best suited to your needs.
List of Life Insurance Companies Operating in India
| Company name | Founding year | Headquarter location |
| Life Insurance Corporation of India | 1956 | Mumbai |
| Max Life Insurance Co. Ltd. | 2000 | New Delhi |
| HDFC Life Insurance Co. Ltd | 2000 | Mumbai |
| ICICI Prudential Life Insurance Co. Ltd. | 2000 | Mumbai |
| Aditya Birla SunLife Insurance Co. Ltd. | 2000 | Mumbai |
| Kotak Mahindra Life Insurance Co. Ltd. | 2001 | Mumbai |
| Pramerica Life Insurance Co. Ltd. | 2008 | Gurugram |
| TATA AIA Life Insurance Co. Ltd. | 2000 | Mumbai |
| Bajaj Allianz Life Insurance Co. Ltd. | 2001 | Pune |
| SBI Life Insurance Co. Ltd. | 2001 | Mumbai |
| Exide Life Insurance Co. Ltd | 2001 | Bengaluru |
| Reliance Nippon Life Insurance Company | 2001 | Mumbai |
| Sahara India Life Insurance Co. Ltd. | 2000 | Kanpur |
| Aviva Life Insurance Company India Ltd. | 2002 | Gurugram |
| PNB MetLife India Insurance Co. Ltd | 2001 | Mumbai |
| Bharti AXA Life Insurance Company Ltd | 2005 | Mumbai |
| IDBI Federal Life Insurance Company Limited | 2008 | Mumbai |
| Future Generali India Life Insurance Company Limited | 2006 | Mumbai |
| Shriram Life Insurance Co. Ltd. | 2005 | Hyderabad |
| Aegon Life Insurance Company Limited | 2008 | Mumbai |
| Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited | 2007 | Gurugram |
| Edelweiss Tokio Life Insurance Company Limited | 2009 | Mumbai |
| Star Union Dai-Ichi Life Insurance Co. Ltd. | 2007 | Mumbai |
| IndiaFirst Life Insurance Company Ltd. | 2009 | Mumbai |
Frequently Asked Questions
Which is the best life insurance company in India?
You should opt for a life insurance plan from one of the reputed providers. However, each company and policy has its benefits and drawbacks. You must consider the best option based on your specific life situation and needs.
Life insurance plans are subjective, meaning a highly beneficial policy for one individual may not prove to be as useful to another. Therefore, choose such a plan after careful consideration.
What are unit-linked insurance plans?
Unit-linked insurance plans or ULIPs are a type of life insurance policy, which doubles down as a savings plan, along with providing a death benefit to policyholders.
The primary benefit of a ULIP is that the policyholder or his/her family members benefit regardless of whether the insured individual lives or dies. If the policyholder perishes, his/her nominees receive a death benefit. However, if the insured outlasts the policy term, he/she can claim the maturity value from this ULIP.
What are the various types of life insurance policies available in India?
Indians can choose from seven major life insurance policy types. These include term insurance plans, ULIPs, retirement plan, child plan, money back policy, whole life insurance and endowment plans.
Each of these has some benefits and drawbacks. Consider them carefully before choosing one or the other.
Why is claim settlement ratio important while choosing a life insurance provider?
Claim settlement ratio can help you determine whether an insurance company is too stringent while sanctioning claims.
Lower ratios indicate that a company may not settle claims easily.
However, a high ratio is indicative of a streamlined compensation process. Therefore, availing a policy from one such company would be beneficial since you can claim without risk of rejection.