Worried about the financial welfare of Your FAMILY after your death? Then you need to buy a life insurance policy urgently.
There are 24 Non Banking Financial Companies (NBFCs) in India that offer life insurance policies.
Additionally, the Indian government also sponsors two life insurance policies at very low premiums. Here we take a look at where you can buy the best life insurance company of India.
List of Top 10 Life Insurance Companies in India
Should you wish to buy a life insurance policy, you can approach any of these Life Insurance companies listed below.
However, we emphasize that the below list is only for educational purposes.
It does not signify financial standing, standards of service, quality of products or any other indicators that should influence your policy buying decisions.
This list is generated at random. Therefore, we advise you to study the life insurance market of India before buying a policy from the companies listed below or other insurers.
All insurance companies in the country are governed by the Insurance Regulatory & Development Authority of India (IRDAI).
Life Insurance Corporation of India
Life Insurance Corporation of India, commonly called LIC is wholly owned by the Indian government.
For several decades it held a monopoly in the life insurance market. It is the single largest life insurer in India.
LIC has headquarters in Mumbai and operates through eight zonal offices, 113 regional offices, 2,049 branches and has over 1.2 million agents selling its insurance products nationwide.
SBI Life Insurance Co Ltd
SBI Life Insurance Co Ltd also ranks among topmost life insurers in this country.
The NBFC is a Joint Venture (JV) between State Bank Group and BNP Paribas Cardif, a French financial and insurance company.
SBI Life offers insurance policies through some 23,000 branches of State Bank of India which is the largest Nationalised Bank in India and tie-ups with other NBFCs and other banks, cooperative societies and a nationwide network of agents.
PNB- MetLife India Insurance Co Ltd
PNB MetLife India Insurance Co Ltd is a JV between Public Sector Undertaking (PSU) lender Punjab National Bank (PNB) and New York-based Metropolitan Life Insurance Co (MetLife).
PNB Metlife has insured about four million lives in India.
PNB MetLife insurance policies are available from PNB branches across the country as well those of Jammu & Kashmir Bank and Karnataka Bank Ltd.
This NBFC has over 103 million customers for its assorted insurance products.
IndiaFirst Life Insurance Co Ltd
IndiaFirst Life Insurance Co Ltd was formally launched in 2010 by erstwhile President of India, Pranab Mukherjee.
The company is a Joint Venture between PSU lenders Bank of Baroda who holds a 44 percent share, Andhra Bank with 30 percent stake while UK-based Legal & General holds a 26 percent share in this NBFC.
The company’s life insurance products are available from over 8,000 branches of the two banks and other partners across the country.
Life insurance policies can be bought by non-customers of these banks too.
Star Union Dai-ichi Life Insurance Co Ltd
Another top ranker in India’s life insurance market is Star Union Dai-ichi Life Insurance Co. Ltd, also called SUD Life.
It is a JV between PSU lenders Bank of India, Union Bank of India and Japan’s Dai-ichi Life.
You can buy life insurance products of SUD Life from over 11,000 branches of the two banks and their various partners, which include regional rural banks.
These rural banks have over 1,950 branches in remote parts of the country, making SUD Life insurance products available to the rural population of India.
You need not to be an account holder of these banks to buy their life insurance policies.
Canara-HSBC-OBC Life Insurance Co Ltd
Canara- HSBC -Oriental Bank of Commerce Life Insurance Co Ltd was launched in June 2008.
It is an NBFC launched as JV of two major PSU lenders, Canara Bank which holds 51 percent stake and Oriental Bank of Commerce (OBC) with 26 percent shares and remaining held by HSBC Life Insurance (Asia Pacific( Holdings Ltd.
You can buy a Canara-HSBC-OBC life insurance policy from a network of over 10,000 branches of the two bank partners in India.
IDBI Federal Life Insurance Co Ltd
IDBI Federal is a JV between PSU lender IDBI Bank, private sector lender Federal Bank, and Ageas Insurance Ltd of UK.
The company offers life insurance products through over 3,000 branches of the two banks as well as regional partners, NBFCs and cooperatives.
IDBI Federal is billed as one of the fastest growing insurance and wealth management companies in the country.
ICICI Prudential Life Insurance Co Ltd
ICICI Prudential Life Insurance Company Ltd (ICICI Prudential Life) is a JV between ICICI Bank Ltd, one of the largest private sector banks in India and Prudential Corporation Holdings Ltd of UK.
ICICI Prudential Life was launched in 2001.
It ranks among the leaders of India’s private life insurance firms. ICICI Prudential’s life insurance policies can be bought through the bank’s network of about 4,000 branches.
ICICI Pru Life is also a leading Asset Management Company in India. Its products can also be bought by non-customers of ICICI Bank.
HDFC Standard Life Insurance Co Ltd
HDFC Standard Life Insurance Co Ltd is a JV between India’s pioneering NBFC, HDFC Ltd and Standard Life Aberdeen, a global investment company.
HDFC Standard Life was established in 2000. Today, it ranks as a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions.
As on December 31, 2017, the company had 33 individual and 11 group products in its portfolio, along with eight optional rider benefits, catering to a diverse range of customer needs,” states the company website.
Tata AIA Life Insurance Co Ltd
Tata AIA Life Insurance Co Ltd (Tata AIA Life) is a JV between Tata Sons Ltd and AIA Group Ltd. (AIA).
The company offers life insurance schemes under various plans such as protection, wealth, savings and child.
Tata AIA life insurance plans can be bought at its offices, online or through various banks, NBFCs and other authorized outlets across the country.
India Post is a very large player in the country’s life insurance market.
Its policies are available under the brands, Postal Life Insurance and Rural Postal Life Insurance. Both PLI and RPLI each offer six different life insurance policies.
However, PLI policies can only be bought by employees of Central and state governments, their departments, banks and educational institutes.
PLI policies are not available to the general public. RPLI policies are available for all people residing in rural areas of India.
Pradhan Mantri Jeevan Bima Yojana
Pradhan Mantri Jeevan Bima Yojana is a scheme sponsored by the Indian government and operated through various PSU and private sector banks.
PMJBY was launched in 2015. Under the scheme, people aged between 18 and 50 years can avail a PMJBY life insurance policy for an annual premium of Rs.330.
The policy can be bought from any participating bank or NBFC.
It offers a life insurance coverage of Rs.200,000. Annual premiums are generally payable by direct debit from a bank account, subject to availability of sufficient funds.
You can also take a PMJBY insurance policy online through certain banks.
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Life Insurance in India: Background
According to various financial analysts, an estimated 288 million Indians hold life insurance of any sort. However, this figure is rather ambiguous.
It includes workers covered by group life insurance offered by employers, those holding policies for accidental death- some of which are issued free by banks for account and credit card holders and government employees, including personnel of the Indian Armed Forces.
There is also a segment of Indians holding health insurance policies that also covers death and permanent disability. Hence, the number of people who hold only life insurance policies is fairly difficult to estimate.
Trends in India’s Insurance Sector
Reports compiled by various leading banks, finance companies and industry analysts indicate the Indian insurance market shows immense growth potential.
Projections are life premiums will cross the US$230 billion mark by 2025. While figures for the financial year 2016-2017 were unavailable and fiscal 2017-2018 are awaiting compilation, reports from previous years indicate India’s life insurance sector is on upswing.
“Premium income of the life insurance segment had increased 14.04 per cent in Financial Year 2017 to US$ 64.92 billion).
In August 2017, the life insurance industry reported a 24 percent growth in overall annualized premium equivalent with the help of both private players and Life Insurance Corporation of India,” states India Brand Equity Foundation.
History of Insurance in India
India has a long history of life insurance. The first life policy in India was issued by Oriental Life Insurance Co in 1818.
The company was launched in Kolkata by Bipin Behari Dasgupta to provide life insurance cover to British and European citizens residing in India.
It was the first Indian enterprise at a time when insurers in their native lands were hesitant to issue them policies due to uncertainties involved in working in distant colonies.
By 1870, various small insurers had started offering life coverage plans. However, they found few takers since Indians considered it blasphemous to get money from a person’s death.
Monument of India’s Insurance Industry
In 1898, Oriental Insurance Co bought a building in Mumbai where the Cathedral High School was housed.
Today, this building is a heritage landmark of Mumbai and is today known as Oriental Insurance Building located exactly opposite the Flora Fountain (Hutatma Chowk).
The building itself has a great history and was the location where India’s premier PSU lender, Bank of India was established.
Today it houses offices of LIC. The building is the first landmark on Mumbai’s Heritage Walk and is considered as a monument of India’s insurance industry.
There is no dearth of life insurance companies in India since the government dissolved monopoly held by LIC.
You can buy a good life insurance policy for as low as Rs.500 per month premium. Life insurance policies are also accepted as collaterals for loans by some lenders.
There are different types of life insurance policies available in the country, to suit every need and budget.
It is a good investment to protect your dearest ones against financial problems in event of your death.
Nowadays, claims are also settled. You can buy one from any top life insurance company in India.