Best Term Insurance Plans in India with Claim Settlement Ratio


Details: Hits : 340912; Modified 12 July 2017

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Term insurance plan is necessity for an individual who has dependents or a family. It is a proven fact that a term plan offers the most ‘value for money’ proposition. It is the basic form of life insurance where a fixed sum assured is paid on the death of the policyholder. In case of survival of policy term, the insured gets nothing in return. The premium on term plans depends on three factors: age, term of the policy and the sum assured you choose.

Now as you know what term insurance means. Let us look at the claim settlement ratio of term insurance providers according to IRDA in the year 2015-2016. We will update the table according to the latest data available.

Best Term Plans in India

Insurance Provider	Death claims received	Claim settlement ratio	Death Claims Paid	Claims Pending
LIC	7,55,901	98.33%	7,42,243	0.50%
Max Life	9,223	96.95%	8,804	0.10%
Birla Sunlife	8,436	88.45%	8,055	1.70%
Tata AIA Life	3,873	96.80%	3,659	1.00%
Star Union Daichi	1,266	80.73%	1,191	0.30%
ICICI Prulife	12,309	96.20%	11,546	0.80%
PNB MetLife	2,466	85.36%	2,290	1.50%
Bajaj Allianz	20,661	91.30%	18,978	3.00%
Kotak Mahindra Life	2,686	89.09%	2,437	3.20%
HDFC Std	12,189	95.02%	11,031	2.30%
SBI Life	14,876	93.39%	13,303	3.20%
Sahara Life	778	90.30%	700	3.60%
AegonReligare	460	95.31%	413	0.20%
Canara HSBC	576	92.99%	516	3.10%
Exide Life	3,432	89.36%	2,955	1.60%
Reliance Life	18,142	93.82%	15,211	5.80%
Future Generali	2,160	90.26%	1,808	1.80%
Aviva Life	1,690	81.97%	1,396	0.50%
Bharti AXA Life	1,112	80.02%	900	2.90%
IDBI Federal Life	1,017	84.79%	736	4.30%
India First Life	1,655	71.87%	1,195	5.00%
Shriram Life	1,960	60.24%	1,307	11.20%
DHFL Pramerica	953	83.64%	545	6.50%
Edelweiss Tokio	119	85.11%	68	5.00%

**Companies are ordered according to the highest claim settlement ratio for the year 2015-16 and follows in a descending order.

Best Term Insurance Plans in 2017 with Rider Benefits

Term Plan	Entry Age (Min-Max)	Policy Term (Min-Max)	Accidental Death Benefits	Critical Illness Benefit	Waiver of Premium	Terminal Illness
ICICI Prudential iProtect Smart	18 - 60 Years	5 - 40 years	Paid	N/A	Free	Free
HDFC Life click2Protect Plus	18-65 years	10 - 40 years	Paid	Paid	N/A	N/A
Max Life Online term Plan Plus	18-60 years	10 - 40 years	Paid	N/A	Included	N/A
Aegon Life iterm Plan	18-65 years	5 - 40 years (or upto 80 Years)	Paid	N/A	Paid	Free
PNB MetLife Mera Term plan	18-65 years	5 - 40 years	Paid	Paid	N/A	N/A
Birla Sun Life Protect @Ease Income Lump Sum	18-65 Years	5-40 years	Paid	Paid	N/A	Free
Canara HSBC OBC iSelect Lumpsum	18-70 Years	5 - 40 years	Paid	N/A	N/A	Free
Edelweiss Tokio Life TotalSecure+	18-65 years	80 years	Paid	Paid	Paid	N/A
Future Generali Flexi Online term	18-55 years	10 - 65 years (non-smoker)- 75 years(smoker)	Paid	N/A	N/A	N/A
Aviva iLife Plan	18- 55 years	10 - 35 years	N/A	N/A	N/A	N/A
TATA AIA iraksha Supreme	18 - 70 years	10 - 40 years	N/A	N/A	N/A	N/A
IDBI Federal iSurance Flexi Lump Sum Plan	18 - 60 Years	10 - 62 years	Paid	Free	N/A	N/A
Bajaj Allianz eTouch Lumpsum	18 - 65 years	10 - 40 years	Paid	Paid	Free	N/A
SBI Life eShield Plan	18 - 65 years	5 - 30 years	Paid	N/A	N/A	N/A
LIC E-term Plan	18 - 60 years	10 - 35 years	N/A	N/A	N/A	N/A

**Note: The above plans require mandatory medical proofs.

Claim settlement Ratio of term Insurance Companies

While looking for a term insurance policy, one of the major points to consider is claim settlement ratio.Claim Settlement ratio of a company informs you about the number of policies that are settled by paying back the claims in case of death.

Claim settlement ratio has been chosen to rate the insurance companies because it is the only ratio which could be of use to customers while they select the policy. High claim settlement ratio shows the insurer is reliable and could be trusted for taking term plans whereas the low ratio indicates that the credibility of insurer is less and therefore they won't attract many customers because of their inability to settle claims.

Looking at the Claim settlement ratios of various companies it is clear that Life Insurance Corporation of India, MaxLife, Birla Sunlife, Tata AIA Life, Star Union are the top 5 insurance companies that have fared well in terms of settling their claims and hence stand a good chance of gaining customers' attention for a Term Insurance Plan.LIC performs the best in this regard because the company being a core Life Insurer has settled the maximum claims for Term plans and has rubbished the “Do not take Term insurance from a Life Insurer” Norm.

It is a suggestion to all the customers that they make their choices wisely depending on the past performance of the insurers evaluated through their Claim Settlement ratios. Besides that age, health and income of the individual are of ample importance because depending on that only would the insurer decide on the sum insured, premium, term etc. Rest, the provided list is good enough to choose the best term insurance plan.