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Best Term Insurance Plans in India compare / calculate SBI / LIC / HDFC / Reliance / Aviva / ICICI /Max Life

Best Term Insurance Plans in India compare SBI / LIC / HDFC / Reliance / Aviva / ICICI /Max Life term insurance plans calculate term plans premium and maturity.

Best Term Insurance Plans in India

When many companies provide same product and everyone claims that its product is the best, this becomes quite hard for a customer to pick the product of a specific company.  This is the same with the insurance companies operating in India; every company wants to gain more market shares than its competitors. Therefore they advertise to be the best in offering insurance plans to the customers.
In this article, we will analyze the insurance companies on various tools and determine which company provides the best term insurance plans in India. In general, one can say that any company which offers term plans at the lowest premium is the best. But in financial terms, this would be the worst decision one makes for choosing an insurance plan just on the basis of premium amount.
We will be using three vital factors in the evaluation process of a term plan which are;
  1.        Claim Settlement Ratio
  2.        Solvency Ratio
  3.        Premium Amount

 

1.         Claim Settlement Ratio

Claim Settlement Ratio is imperative when it comes to checking how much one can rely on the insurance company at the time of need. There is no point of purchasing an insurance plan if one’s claim is not settled when demanded. Therefore, we check the claim settlement ratio of Indian insurance companies by using the data issued by Insurance Regulatory and Development Authority (IRDA) India in its yearly report for 2013 – 2014, released on 8th January, 2015 for public view.
S. No.
Insurance Companies
Number of Claims Received
Claim Seattle Ratio (%)
1
AegonReligare
400
81.00%
2
Aviva
2025
84.01%
3
Bajaj Allianz
22613
91.29%
4
Bharati AXA
1069
88.13%
5
Birla Sunlife
8753
87.76%
6
Canara HSBC
616
86.76%
7
DLF Pramerica
533
22.14%
8
Edelweiss Tokio
77
60.00%
9
Exide Life
3562
83.16%
10
Future General
2159
74.88%
11
HDFC Standard
7158
94.01%
12
ICICI Prudential
13386
94.10%
13
IDBI Federal
906
90.34%
14
India First
1237
73.13%
15
Kotak Mahindra
2903
90.69%
16
LIC
752505
98.14%
17
Max Life
9470
93.86%
18
PNB Metlife
2443
90.24%
19
Reliance Life
19677
81.97%
20
Sahara
767
90.19%
21
SBI Life
13979
91.06%
22
Shriram
1346
67.69%
23
Star Union
966
92.86%
24
Tata AIA
4544
89.68%
We will choose the top companies from this list and put them to the test in the next step.

 

2.         Solvency Ratio

Solvency ratio determines how much financially good a company is in order to meet its short-term and long-term obligations. According to IRDA an insurance company’s solvency ratio must not be less than 1.5, the higher the better.
S.No.
Insurance Companies
Solvency Ratio
1
Bajaj Allianz
7.34
2
HDFC Standard
1.94
3
ICICI Prudential
3.72
4
Kotak Mahindra
3.02
5
LIC
1.54
6
Max Life
4.85

3.         Premium Amount

In the last we check the premium amount of all these companies to know which company charges less premium from its policyholders.
We assume that the policyholder is 30 years old, non-smoking man, purchases a policy for 30 years term for 75 Lakh Sum Assured.
S.No.
Insurance Companies
Premium
1
Bajaj Allianz
9,395
2
HDFC Standard
8,250
3
ICICI Prudential
10,845
4
Kotak Mahindra
8,827
5
LIC
11,280
6
Max Life
6,395
Best Term Plans in India  2016-17
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%

Aegon Life

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%

Conclusion

After the above analysis, we can conclude that Max Life offers the best term insurance plan in India.

References

  1.  term insurance premium calculator,
  1. term insurance plans comparison,
  1. sbi / LIC / HDFC / reliance Aviva term insurance plan.
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