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Top 5 Life insurers in India You Should Consider

Punjab News Express/Swati Walia
April 06, 2018 02:10 PM

Did you know that in India, there are 57 insurance companies? (Source: IBEF) Out of those 57, there are 24 are life insurance companies while the remaining 33 are non-life insurance companies? That means there are at least 25 insurance policies to choose from, especially if you are buying only a primary life cover. Selecting one insurer over other is a challenge. However, this article will talk about the most important factors that matter for an insurance buyer by comparing them with the top five insurance companies. It should help decide between buying the best online term plan hassle-free.

Financial Strength (solvency ratio)

It is the best way to determine how a company is doing. It is the capital size that the company declares depending on the asset it has and its liability. Although it sounds simple, the calculation is a little complicated.

Max Life

HDFC Life

Aegon Life

SBI Life

ICICI Prudential Life

2.06

1.97

2.06

2.11

2.52

 

Source: Max Life; Value Search, IPO Analysis; Aegon life; IIFL; CEICdata

Incident/Persistency Ratio (talking about customer service)

How do you know that a school or a college is right for your child’s admission? You analyse the consistent results of various schools. Similarly, persistency ratio is the ratio to determine how persistent insurance customers are when it comes to renewing their old insurance. It helps you know which insurer is better than the other. This ratio determination happens in every 13th month, 25th month, 37th month, and 61st month.

Max Life

HDFC Life

Aegon Life

SBI Life

ICICI Prudential Life

80.4%

49.76%

49%

67.18%

49.10%

Source: Max Life; Max Life PDF; Aegon Life; IIFL;

Claim Settlement Process

To ensure that you have the life cover you want to buy, you need to know if the insurer has the provision of smooth and hassle-free claim settlement process. Max Life, HDFC Life, Aegon Life, SBI Life, and ICICI Prudential have an easy settlement process. Customer service is a priority. They like to settle the claim of the claimants as soon as possible so that they live up to the expectations of the customers. They pay your dues in a stipulated time. Let us have a look at their claim settlement ratio to have more clarity on the claim settlement process.

Insurers

Number of Policies

Claim Settlement Percentage

Max Life

9606

97.81%

HDFC Life

12421

97.62%

Aegon Life

571

97.11%

SBI Life

17027

96.69%

ICICI Prudential Life

10539

96.68%

 

Source: Basunivesh, IRDA Claim Settlement Report 2016-17

Ease of Buying

This point is self-explanatory; however, what do we mean by ease of buying? It is the ease of which you have access to buy insurance. Online plans come handy as everything is available online. You also save money. The top five insurers have online plans such as Cancer plan, Term plan, Health Insurance and more. The best part about buying a term plan or any plan online is that you can make comparison quickly and take a decision. Choosing these companies, you get cancer plan comparison, critical illness plan comparison, and term plan comparison in a few clicks. You either buy a plan online or even call for an insurance agent at your home; the choice is yours!

Other Factors

The above four factors are essential for you to consider. After these, you cannot ignore other factors such as Add-On Covers and maximum term cover. Add-on covers or riders are those products that can add value to your insurance. These top five insurers have the best riders that can make the life insurance you buy more worth it. Term cover is another aspect to consider. Most companies promise to pay a sum of money for sudden death; however, the cover lapses, if the person insured, survives. You get maximum benefits from these insurers.

Happy Buying!

Insurance is a product that we do not feel the need in the beginning; however, with the passing of years, we understand its importance. Can you buy any insurance plan from any company? You cannot! If you think that a plan of different insurers sounds similar, there is a difference in the features.The difference can be a minor one to a major one. Already made up your mind to buy one life cover? Keep the points in mind and proceed with a full-proof insurance buying process.

 

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