Top 10 Life Insurance Companies in India 2025

Life Insurance Companies

In today’s unpredictable age, it is essential to safeguard yourself and your loved ones and a life insurance policy does just that. Life insurance provides financial cover for a contingency linked with human life. These contingencies can arise out of an untimely death, permanent or partial disability, accident, and retirement, resulting in a loss of income for the household.

Although a human life cannot be replaced by monetary benefit, the sum assured (an amount paid against the life insurance policy in the event of a loss) compensates for the family’s income loss. This sum assured is pre-determined while taking out a life insurance policy and it is a critical factor in estimating the policy’s premium cost.

Life insurance is a crucial tool in family and financial planning, one that offers indemnity and value beyond the monetary aspect. Despite the benefits and security that life insurance provides, people in India have still not adapted to it. According to an IRDAI report in 2023, life insurance penetration in India stood at only 3%. When taken in the context of India’s population this raises caution about India’s lack of preparedness and protection against unforeseen circumstances pertaining to human life.

Whether planning for the future or ensuring safety against unforeseen events, a life insurance policy is an essential tool that helps mitigate risks and brings long-term stability. In this blog, we’ll unpack everything you need to know about buying a life insurance policy and our top 10 picks for life insurance companies that have the best claims settlement and solvency ratio. So that you can make a well-informed policy purchase!

Also read: Top 10 Health Insurance Companies in India

A Quick Comparative View Of Top 10 Life Insurance Companies In India

• Higher claim settlement ratio indicated more reliability
• IRDAI mandates a minimum solvency ratio of 1.5 for insurers in India
• Premium rate is subject to change based on age, gender, income, and other factors
• Use premium calculators to find out plan premiums, eligibility, and coverage benefits
• Provided above is a sample premium calculation of an unmarried 31-year-old healthy woman, with a 29-year policy term

Suggested read: What Is Group Term Life Insurance?

10 Best Life Insurance Companies in India 2025

Importance of A Life Insurance Policy

While many consider life insurance only for long-term financial planning, its benefits and relevance are far more diverse and varied. Here are some of those reasons:

1. Financial Protection

When it comes to financial protection, a life insurance policy protects your loved ones not just after the events of your death but also in case of a critical illness or an accident. As a popular brand jargon goes “Jindagi ke saath bhi, jindagi ke baad bhi”; a life insurance policy plays a crucial role in sustaining you and your family in all life’s severities.

2. Debt Repayment

Most life insurance policies provide the option of borrowing for payments towards any outstanding debts that you may have incurred. Be it a mortgage, car loan, or credit card dues, a life insurance policy can pay off your liabilities and prevent your family from being burdened by your debt.

3. Funeral and Final Expenses

Most life insurance policies offer to pay for the costs associated with funeral services. As these expenses tend to be significant, the insurers provide the policyholders with options to plan for final expenses. The funeral cover plans can further help reduce the strain on families.

4. Income Replacement

Many middle-income households in India have only one breadwinner, and in their absence, the family loses income and financial security. If you’re an only income-earner or the primary breadwinner in your household then a life insurance policy is a worthy investment as it can help cover living expenses, education, and essential financial needs of your loved ones.

5. Estate Planning and Tax Benefits

Life insurance plays a crucial role in ensuring that your heirs receive the full value of your assets and it also helps cover taxes, with an annual tax deduction limit of up to Rs. 1.5 lakhs under section 80C. Additionally, some policies also offer tax advantages, such as tax-deferred growth on cash value or tax-free death benefits.

6. Retirement Planning

When planning for your sunset years, a life insurance policy may not be at the top of your life but it can be quite helpful in generating regular income in your post-retirement years. Certain types of policies like whole life insurance build cash value over time or a unit-linked insurance that can grow your income as a part of your insurance premium gets invested in a fund of your choice. These policies can be accessed at the time of maturity and can be effective for long-term financial planning.

All in all, having a life insurance policy brings peace of mind for you and financial stability for your loved ones even in your absence.

Quick read: Top 5 Group Medical Insurance for Family

Types of Life Insurance In India

Here are the different types of life insurance plans that you can pick from depending on which plan suits your requirements the best:

1. Term Insurance

A term life insurance also known as a pure protection plan provides financial security for a specific period (it can be 10, 20, or 30 years) to your loved ones. If the policyholder passes away during this period only then can their nominee receive the death benefit. However, if the policyholder survives the policy term then they will not receive the life insurance payout unless they have taken a Return of Premium plan.

Who Should Buy Term Life Insurance?

• Sole breadwinners
• Young professionals looking for affordable life coverage
• Individuals with outstanding liabilities who need to pay off their debts

2. Whole Life Insurance

If you are looking for a policy to cover your entire lifetime (up to 100 years), a whole life insurance plan is the one that you should go for. When compared to term life plans, whole life insurance is costly but the coverage is not limited to a specific period so you don’t have to worry about policy renewal.

Your loved ones are bound to receive a death benefit upon your demise as long as your policy premiums are paid. Another benefit of such a plan is that the cash value grows over time as you continue paying premiums toward the policy, making it possible to borrow against your insurance policy in case of a financial emergency.

Who Should Buy Whole Life Insurance?

• Individuals planning to create wealth for families
• Individuals looking for long-term financial planning
• People with long-term dependents (for example – a parent with a special needs child)
• Individuals who want to accumulate wealth with tax benefits

Also read: Difference Between Life Insurance and Health Insurance

3. Unit-Linked Life Insurance

When it comes to long-term financial planning, one cannot help but think of wealth creation. And this is where a unit-linked insurance plan (ULIP) comes in handy. This policy combines life insurance with investment. How? Well, a part of your premium is paid towards the insurance policy, and the other part goes towards a market-linked fund of your choice. 

Who Should Invest in ULIPs?

• Individuals looking for a one-shot investment in wealth creation and future planning
• People with moderate-to-high risk appetite
• People planning for financial goals like a child’s education or early retirement
• New investors who want tax-efficient options

4. Retirement Life Insurance (Pension Plans)

A pension plan or annuity plan, commonly known as a retirement life insurance helps individuals build a retirement corpus. For people who want to ensure a regular income post-retirement while also securing the future of their loved ones, this type of life insurance plan is ideal.

Who Should Buy Retirement Life Insurance?

• Individuals planning early retirement
• Senior citizens looking for lifetime pension options
• People who want life insurance along with a pension plan

Also read: Top 10 Health Insurance Plans for Family

5. Group Term Life Insurance

Like most group policies, a group-term life insurance policy also provides coverage to a group of people under a single policy. Most commonly it is purchased by employers for their employees. Much like a term life insurance policy, a group term life policy also covers a group of individuals for a pre-determined period.

So, if a covered member passes away during the policy period, their nominee receives a death benefit. Additionally, a group term life insurance is more cost-effective compared to an individual term life policy due to a group’s risk pooling under a single policy.

Who Should Get a Group Term Life Insurance Plan?

• Businesses and startups looking to offer low-cost benefits to employees
• Banks and financial institutions looking to safeguard borrowers against liabilities
• Government and NGOs looking to promote financial inclusion and welfare programs

How to Choose the Right Life Insurance Company?

When selecting a life insurance provider, consider the following factors:

1. Claim Settlement Ratio

A claim settlement ratio is the percentage of claims settled by an insurance company out of the total claims received in a year. A higher claim settlement ratio indicates the insurance provider’s reliability in meeting claims and its financial stability. It is a critical aspect to consider while choosing a life insurance company and policy.

2. Solvency

Apart from the claim settlement ratio, another crucial parameter for choosing an insurance provider is the solvency ratio. It is calculated by dividing the company’s assets by its liabilities. An insurance company’s solvency ratio indicates its financial strength and its ability to meet its long-term obligations. 

3. Product Offerings

Be it the diversity in options or plan benefits, a life insurance company’s product offering can help you assess whether the insurance policies meet your specific needs or not. While picking the right insurance provider, do take into account your financial goals and requirements to compare different policies and premiums.

4. Customer Service

Products like life insurance come with a lot of fine print and therefore you should go with a provider that has built its reputation for customer support and transparency. It is not easy to mitigate concerns and claims if your insurance provider is not easily accessible. To ensure that the company has a strong customer service arm, check for its digital and offline presence.

5. Premium Costs

Life insurance cover is hefty and therefore the premium cost can be exuberant too. So, it is highly advisable to compare policy options and premium rates of different plans to derive the best value for your money.

Choosing the right life insurance company is important as it impacts the financial security of you and your loved ones. We have tried our best to provide an in-depth analysis of top life insurance companies in India, that excel in offering trust, innovation, and customer support.

But we still advise you to evaluate your requirements and carefully select an insurer that aligns with your goals the best. After all, life insurance is the best way to protect yourself and your family against the unpredictable nature of life.

Also read: Onsurity Membership: 5 Tailored Employee Healthcare Plans

Introducing Onsurity’s Group Term Life Insurance

While we are on the topic of life insurance, we would quickly like to introduce you to Onsurity’s Group Term Life Insurance product. It is specially crafted for companies to help protect their most valued members – their employees.

Group-term life insurance provides a safety net for your team and their loved ones in the face of any unfortunate event resulting in death, accident, or disability. Furthermore, this type of policy is more comprehensive and cost-effective than compared to individual term life insurance.

Onsurity’s group term life insurance is highly advantageous to both you and your team. They get the assurance and financial security without having to pay out of pocket and they get benefits that include but are not limited to – tax relief, flexible payment options (monthly, quarterly, bi-annually, or annually), effortless claims management, and excellent customer support.

What’s more interesting is that Onsurity can help you bundle group health insurance, group personal accident insurance, wellness benefits, and group term life insurance, all in one Employee Benefits package. A unified platform like Onsurity makes managing employee benefits easier and highly cost-effective. Sounds interesting? Connect with our expert today to learn more about Onsurity’s health and wellness benefits!

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