Life Insurance : Definition, What It Is, How It Works, Types, Key terms, Companies, Riders, Claims, Premiums, Benefits

What is Life Insurance? - Definition

‘Life Insurance’ is an agreement between the Policyholder and a Life Insurance Company, whereby the Insurance Company promises to pay the Death Benefit to the beneficiary upon the death of the Insured Person or a Maturity Benefit upon Maturity of the Policy, in exchange for an Insurance Premium. The Death Benefit paid to the Beneficiary upon the death of the Insured Person replaces the Income which would have been earned by the Policyholder. The amount can be used to pay off debts, fund children’s education expenses and meet other long term-goals.

There are various types of Life Insurance Plans available in India such as

Pure Protection Plans

1. Term Insurance Policy
2. Group Term Life Insurance Policy

Protection and Savings Plans

1. Endowment/ Savings Plans
2. Retirement Plans – Pension/Annuity Plans
3. Retirement Plans - Annuity
4. Child Plans
5. Unit Linked Insurance Plans (ULIPs).

How does Life Insurance Work?

A Life Insurance Policy provides the Nominee or Beneficiary with a Death Benefit upon the death of the Life Assured. The Deah Benefit provides financial security to the family of the Policyholder. The Working of a Life Insurance Policy is explained below:

1. Buy Life Insurance: Before purchasing a Life Insurance Policy, the Insurance Company determines your Policy Premium based on the details provided such as Age, Sum Assured, Medical and Smoking History etc. You can purchase a Life Insurance Plan after comparing quotes from multiple Insurance Companies.
2. Premium Payment: After purchasing the Life Insurance Policy, the Policyholder has to pay Premiums as the frequency chosen at the time of purchasing the Insurance Policy. It is recommended to choose an affordable rate that is aligned with your financial commitments.
3. Filing a Claim: The final step involves filing a Life Insurance Claim upon the death of the Policyholder. The Nominee must submit the set of required documents and following verification by the Insurance Company, the nominee receives the Sum Assured.

Key Terms used in Life Insurance

1. Life Assured: The Person who is covered by the Life Insurance Policy.
2. Proposer: The Person who has purchased the Life Insurance Policy and is responsible for paying the Policy Premiums. For instance, if you buy a policy for yourself, you’re both the Life Assured and the Proposer. If you purchase a Policy for a family member, you’re the Proposer, and they become the Life Assured.
3. Nominee or Beneficiary: The person designated at the Policy’s inception to receive insurance benefits in case of the death of the Life Assured is the Beneficiary.
4. Insurer: The Insurance Company which sells the Life Insurance Policy to the Proposer.
5. Death Benefit: The Sum Assured given to the beneficiary upon the death of the life assured is known as Death Benefit.
6. Maturity Benefit: In Protection and Savings Plans, the Insurer pays a lumpsum amount to the Policyholder if he survives the term of the Policy, known as the Maturity Benefit.
7. Premium: The Payment made to the Life Insurance Company for Policy Benefits is known as Premium. The Insurance Premium can be a Regular Payment, Limited Term Payment, or a One-Time Payment, based on the option chosen by the Proposer.
8. Policy Term: The duration for which the Life Insurance Policy remains active.
9. Premium Payment Term: The duration over which Insurance Premiums for the Life Insurance Policy are paid.
10. Cash Value: Cash Value in Life Insurance is portion of premiums paid by the Policyholder that accumulates over time, earning interest or investment returns. The Policyholder can borrow against the cash value of the Policy.
11. Surrender Value: A Policyholder can cancel his Life Insurance Policy before the Maturity Date by surrendering the Policy with the Life Insurance Company. The Insurance Company, in return, will pay the Cash Value, also known as the Surrender Value, to the Policyholder.
12. Rider: A Rider is an additional clause added to the base Life Insurance Policy which enhances the coverage of the Policy. For example, a Critical Illness Rider pays a lumpsum amount to the Insured if he is diagnosed with any of the Critical Illnesses covered by the Policy.
13. Bonus: A Bonus in Life Insurance Policy is the benefit in addition to the Sum Assured that is distributed to ‘with Profit’ or ‘Participating Policy’ Policyholder
14. Sum Assured: When an Insurance Company signs a contract with the Insured, it promises to pay a certain amount to the Beneficiary upon the Death of the Life Assured or to the Policyholder himself if he survives the term of the Policy. This pre-determined amount is the Sum Assured of the Policy
15. Lapsed Policy: If the Proposer fails to pay the Policy Premium on time, then the Insurance Company cancels the Life Insurance Policy. This is known as a Lapsed Policy.

Performance of Indian Life Insurance Industry in FY23

The Indian Life Insurance Industry comprises of 24 Life Insurance Companies, out of which 23 are Private Insurers and the 1 is a Public Sector Life Insurance Company (Life Insurance Company).

The Indian Life Insurance Industry underwrote a Total Gross Direct Premium of Rs7.83 lakh crore in FY23 as compared to a Total Gross Direct Premium of Rs6.93 Lakh Crores in FY22, a growth of 12.98% on a Y-o-Y basis. The Private Sector Life Insurers reported a Y-o-Y growth of 16.34% while Public Sector Life recorded a Y-o-Y growth of 10.90%. in Premiums Renewal premiums continue to contribute majority of total premium underwritten by Life Insurance Companies in FY23 at 52.56% and the balance 47.44% is contributed by the new business premium.

The Life Insurance Industry paid out a total of Rs4.97 Lakh Crores in Benefits in FY23 as against Rs5.02 Lakh Crores in FY22. The benefits paid on account of surrenders / withdrawals increased by to Rs1.98 lakh crore in FY23 as against Rs1.58 lakh Crores in FY22. The industry paid out a total of Rs41,458.34 Crores in Death Claims in FY23 as against Rs60,821.86 Crores in FY22.

Profit After Tax (PAT) for the Life Insurance Industry for FY23 stood at Rs42,788 Crore as against Rs7,751 Crores in FY22. During FY23, Life Insurance Companies issued 284.70 lakh new policies under individual business, out of which the Public Sector Insurance Company issued 204.29 lakh policies, a degrowth of 5.94% Y-o-Y and the Private Sector Life Insurers issued 80.42 lakh policies, a growth of 8.76% Y-o-Y. The Indian Life Insurance Industry registered a de-growth of 2.21% in the number of new policies issued against the previous year.

Source – IRDAI Annual Report FY23

Types of Life Insurance Policies

There are several types of Life Insurance Policies available to suit a wide range of needs and preferences.

Term Life Insurance Policy

A Term Life Insurance Policy is a type of Life Insurance Plan which provides a lumpsum payout as a Death Benefit to the Nominee in case of the death of the Policyholder. The Policy provides coverage for a fixed number of years, called the Policy Term. A Term Insurance Policy is a basic Life Insurance Policy which provides a Death Benefit in case of the Policyholder’s death. The Policy does not accumulate any Cash Value. Term Insurance is a simple, low-cost option for life insurance coverage. The Policy offers a high Death Benefit at low Premiums. Since the Policy only provides death benefit, it is also known as a Pure Protection Plan. A Term Insurance Policy is an excellent choice to provide financial security to family and the Payout received from the Policy can be used to fulfill commitments such as loans or children’s education costs.

Whole Life Insurance Policy

A Whole Life Insurance Policy provides coverage for the entire lifetime of the Policyholder, that is, essentially until the Policyholder turns 99 years of age. A Whole Life Insurance Policy is basically a Term Insurance Policy which provides cover till 99 years of age.

Group Term Life Insurance Policy

A Group Term Life Insurance Policy provides a lumpsum payout as a death benefit to the employee’s family member in case of the death of the employee. Employers usually purchase a Group Term Life Insurance Policy for employees.

Unit Linked Insurance Plan (ULIP)

A Unit Linked Insurance Plan, also known as ULIP, is a type of a Life Insurance Policy that combines the benefits of an Investment Plan to fulfil long-term goals and an Insurance Cover to provide financial security in case of an unfortunate event. The Insurance Premium paid towards a ULIP plan is divided into 2 parts. One part of the Premium goes towards the life cover while the second part can be contributed to an Equity or a Debt Fund for the purpose of building a corpus to meet future goals. The Policyholder receives the Maturity Benefit on completion of the Policy Term while a Death Benefit is paid out on the death of the Life Assured

Child Insurance Plans

Child Insurance Plans are a type of Life Insurance Plan which is primarily used to secure the child’s future higher education needs. A Child Insurance Plan combines Savings and Insurance where the parents pay Premium on behalf of the child. These Premiums accumulate into a Maturity Benefit at the end of the Policy Term, which can be utilised to finance a child’s education. In case of the parent’s demise during the Policy Term, the Policy pays the Life Cover amount to the nominee of the Life Assured.

Types of Child Insurance Plans available in India

1. Child ULIPs: A Child ULIP combines the benefit of an Investment Plan, where a part of the money is invested in a mix of debt and equity, and an Insurance Plan which provides a Death Benefit in case of the parent’s death during the Policy Term.
2. Child Savings Plan: A Child Savings Plan allows the Policyholder to invest without the market risk of ULIPs. The Policy provides a Life Cover and Maturity Benefit in a single policy.

Retirement - Pension Plans

A Retirement Plan, also known as a Pension Plan, is a type of an Insurance Policy which allows you to save money over the years so that you can enjoy a steady and a fixed income stream during the retirement years. The Policyholder receives a Pension Payment until his death under the Single Life Option. Under the Joint Life Option, the Pension Plan will pay Annuity Pension Payments to the Spouse as well. Pension Plans provide guaranteed income after retirement to help you meet your obligations. They offer flexible investment and payout options, allowing you to accumulate retirement funds at your convenience and receive payouts for meeting your financial objectives.

Endowment Plans/Savings Plan

A Endowment Plan, also referred to as Savings Plan, combines a Savings Plan which allows you to build a financial corpus to help you meet your short term and long-term financial goals as well as provides Life Insurance Cover. These plans are designed to help policyholders save and build a significant corpus. A Saving Plan provides a Maturity Benefit at the end of Policy Term.

Types of Savings Plan

1. Monthly Income Plans: Monthly Income Plans provide a regular income to the Policyholder over the Policy Period.
2. Money Back Plans: Money Back Plans provide periodic payments in addition to a lumpsum payment at the end of the Policy Period.
3. Endowment Plans: Endowment Plans provide a lumpsum payment at maturity in addition to regular payments throughout the Policy Period.

Comparison of Life Insurance Plans in India

What are the different types of Riders in a Life Insurance Policy?

A Rider is an additional clause added to the base Life Insurance Policy which enhances the coverage of the Policy. Insurance companies often provide Policyholders with the flexibility to tailor their Insurance Policies to suit their requirements. Riders represent the primary method through which Policyholders can amend their Life Insurance Plans. Typically, Policyholders pay extra Insurance Premium for each Rider, although some policies might include particular riders within their base Premium.

1. Accidental Death Benefit Rider: An Accidental Death Benefit Rider provides an additional lumpsum benefit in addition to the normal Death Benefit in case the Policyholder dies in an Accident.
2. Waiver of Premium Rider: The Waive of Premium Rider waives the Policy Premium in the event that the Policyholder becomes disabled and is unable to make Premium Payments.
3. Critical Illness Rider: The Critical Illness Rider in a Life Insurance Policy pays a lumpsum benefit to the Policyholder in case he or she is detected with any of the Critical Illnesses covered by the Policy.
4. Terminal Illness Rider: The Terminal Illness Rider, also known as the Accelerated Death Benefit Rider, allows the Insured to access the Policy’s Death Benefit in Advance, if the Insured is detected with a Terminal Illness.

What factors should you consider before purchasing a Life Insurance Policy?

1. Sum Assured Amount: It is important to determine the coverage amount that you would require for a Life Insurance Policy. The Sum Assured amount should be adequate to cover your family requirements. Ideally, a Sum Assured amount of 10x-15x your annual income should be enough.
2. Type of Policy: There are different types of Life Insurance Plans available to cater to the different needs of people such as a Term Life Insurance Policy, Endowment Policy or a Pension Plan Policy. You should choose an appropriate Life Insurance Policy which caters to your requirements and goals.
3. Policy Term: After selecting the Policy, it is necessary to determine the Policy Term you want. Life Insurance Policies provide cover till 85 years of age or even 99 years of Age under a Whole Life Insurance Plan. A longer Policy Term enables you to avail life insurance benefit for longer
4. Riders: The next step is to choose the Policy Riders when buying a Life Insurance Policy. Some Riders that you can choose include Critical Illness Rider, Accidental Death Benefit Rider, Waiver of Premium rider, Accidental Permanent and Total Disability Rider etc
5. Premium Payment: The final step is to choose the Premium Payment Frequency. The Policyholder can make the Premium Payment in the following ways: Single Premium Payment, Limited Term Payment over 5 or 10 years, or Regular Premium Payment over the Policy Term. You should choose a Premium Payment Option which aligns with your cash flow.

What are the benefits of Life Insurance?

Life is uncertain and that is why we should be prepared for it. Life Insurance provides the benefits of protection and savings. As a result, Life Insurance Policies should be a part of every individua’s financial Plan. Some important benefits of Life Insurance Policies are listed below:

1. Financial Security: Life Insurance provides Beneficiaries with financial security in the event of the Policyholder’s death. This one-time payment received from the Life Insurance Policy can be used to cover immediate expenses, outstanding debts, and future financial requirements. A Life Insurance Policy is also an excellent strategy to accumulate wealth while also providing financial security for your family.
2. Income Replacement: A Life Insurance Policy can replace lost income due to the death of a Policyholder, ensuring that dependents can maintain their standard of living.
3. Tax Benefits: A Life Insurance Policy also offers Tax Benefits as the Insurance Premium paid towards the Policy is tax-deductible under Section 80 (C) of the Income Tax Act 1961. Additionally, the Death Benefit received from a Life Insurance Policy is also exempt from taxes. Life insurance makes estate planning easier by providing liquidity to cover estate taxes, ensuring that heirs receive their inheritance without financial stress.
4. Cash Value Accumulation: Permanent Life Insurance Policies accumulate Cash Value over time, acting as a tax-deferred savings vehicle that Policyholders can access through loans or withdrawals during their lifetime.
5. Retirement Planning: Life Insurance can also help in retirement planning as some Policies provide annuity (pension) payments post-retirement. The monthly income received from Pension Plans can be used to fulfill your needs even after the income stops after retirement.

Who needs a Life Insurance Policy?

Life Insurance serves as a crucial financial safeguard if you have dependents like a spouse, children, or other family members who rely on your income. In the event of your passing, the Death Benefits from a Life Insurance Policy can be used to pay off loans, funding educational expenses like college tuition, or contributing to retirement plans. Additionally, Life Insurance Policy incorporates a cash value element that grows gradually over time, providing an added financial asset. Here are some people who must purchase a Life Insurance Policy:

1. Parents of Young Children: Parents of young children should purchase a Life Insurance Policy to provide financial security to the children. If a parent dies, the loss of income may result in financial difficulties. The amount received from a Life Insurance Policy can provide the necessary financial resources for children until they become self-sufficient.
2. People with Debt: People with significant debt in their names should purchase a Life Insurance Policy to not burden the dependents in case something happens to them. The amount received from the Life Insurance Policy can be used to repay debts.
3. People with Dependents: People who are the sole earning member of their family would have their Spouse or Parents dependent on them. Such people should always purchase a Life Insurance Policy in order to provide financial security to their dependents.
4. Businesses with key employees: Certain businesses employ people with specialised skills. Such people are the Keyman or the Key Person of their Organisation. In case of demise of the Keyman, the business cannot run and may have to shut down. In such cases, the Company should purchase a Keyman Insurance Policy so that it receives compensation in case of the death of the Keyman.

What factors impact Life Insurance Premiums?

Following factors impact the Premium for a Life Insurance Policy:

1. Age of the Life Assured: Younger individuals receive lower Life Insurance Premiums as compared to older people taking into account the lower risk of death for younger people.
2. Sum Assured: The Premium of a Life Insurance Policy also depends upon the Policy Sum Assured. The higher the Sum Assured, higher will be the Premium.
3. Smoking History: The Premiums for Smokers is generally higher than Premiums for Non-Smokers
4. Medical History: A Person suffering from some disease will have higher premiums as compared to a healthy person.
5. Policy Features: The Premium for a Life Insurance Plan also depends upon the Policy features. For example, a Policy with Riders will have a higher premium than a Policy with no riders.

What is the Eligibility Criteria for buying a Life Insurance Policy?

Following factors determine whether an Individual is eligible to purchase a Life Insurance Policy or not:

1. Age: Each Life Insurance Policy specifies the minimum and maximum age of the Insured upto which a Life Insurance Policy can be purchased. If the Insured is outside the age bracket, he/she will not be given a Life Insurance Policy.
2. Income Profile: The Income Profile of Life Assured will determine the amount of Cover that is granted under the Life Insurance Policy.
3. Pre-Existing Diseases: The Life Assured usually has to undergo a Medical Test to prove good health and absence of any significant Pre-Existing Disease. If the Insured has any Pre-Existing Disease, then either the Premium is increased or the Insurance Company will not offer coverage.
4. Smoking Habits: The Smoking Habits of an Individual will have a significant impact on his Life Insurance Premiums. Smokers have to pay a higher Premium as compared to Non-Smokers to avail Life Insurance Coverage.

List of Life Insurance Companies in India

Aditya Birla Sun Life Insurance Company

Aditya Birla Sun Life Insurance Company, which began operations in January 2001, is a joint venture between the Aditya Birla Group and Sun Life Financial Inc, a leading international financial services organization in Canada. The company has an extensive network of 340 branches and a team of over 64,000 Agents and Insurance Brokers across the country. The Company offers a wide range of products such as Term Insurance Policy, Retirement Plans, Child Insurance Plans, Savings Plans, ULIPs and Group Insurance Plans. Aditya Birla Sun Life Insurance Company recorded a Gross Premium Income of ~Rs15070 Crores in FY23, a Y-o-Y growth of 24%. The Company’s Individual New Business Premium (APE) grew by 37% to Rs3,022 Cr in FY 2023 while Renewal premium grew by 14% to Rs7,397 Crore in FY23. The Group New Business Premium for FY23 stood at Rs4189 Crore in FY23, a growth of 30% on a Y-o-Y basis. In FY23, Aditya Birla Sun Life Insurance Company reported a Profit After Tax of Rs134 Crores vs a PAT of Rs124 Crores in FY22. Aditya Sun Life Insurance Company’s Claim Settlement Ratio stood at 98.12% in FY23 vs 98.07% in FY22. The repudiation ratio was 1.88% in FY23 as against 1.86% in FY22.

Aegon Life Insurance Company

Aegon Life Insurance Company Limited began operations in India in July 2008 and has since become a strong player in the insurance industry. Aegon Life Insurance Company reported a Premium of Rs369.95 Crores in FY23 vs Rs416.46 Crores in FY22 while the Loss After Tax stood at Rs316.2 Crores in FY23 vs Loss of Rs367.3 Crores in FY22. The Company issued 3,027 Insurance Policies in FY22. The Company offers a wide range of products such as Term Insurance Policies, Retirement Plans, Savings Plans and Group Insurance Plans. Aegon Life Insurance Company reported a Claim Settlement Ratio of 99.37% in FY23.

Ageas Federal Life Insurance Company

Ageas Federal Life Insurance Co. Ltd (formerly IDBI Federal Life Insurance Co Ltd), established in 2008, is one of India’s leading life insurance organizations. The Company is a Joint Venture between Ageas, an international insurance company based out of Europe and Federal Bank, one of India’s leading private sector banks. Ageas holds a 74% stake in the Company while Federal Bank’s stake stands at 26%. Ageas Federal Life Insurance Company reported a Premium of Rs2289 Crores and Profit After Tax of Rs114 Crores in FY23 as against a Premium of Rs2207 Crores and Profit After Tax of Rs94 Crores in FY22. The company offers Retirement Plans, Child Plans, Term Insurance and ULIP Plans to its customers. Ageas Federal Life Insurance Company reported a Claim Settlement Ratio 96.06% in FY23.

Aviva Life Insurance Company

Aviva India is a joint venture between Aviva Plc., a UK-based Insurance Company, and Dabur Invest Corp., one of India’s oldest and most reputable business houses. Aviva PLC, founded in 1696, is one of the world’s oldest insurance companies in continuous operation. Aviva Life Insurance Company offers a wide variety of Term Insurance Plans, Guaranteed Savings Plans, Unit Linked Insurance Plans and Group Insurance Plans to their customers. The Company reported a Gross Premium of Rs1268 Crores in FY22 vs a Premium of Rs1165 Crores in FY21 while the loss stood at Rs85.92 Crores in FY22 vs a loss of Rs43 Crores in FY21. Aviva Life Insurance Company reported a Claim Settlement Ratio of 98.39% for the Individual Business in FY22.

Bajaj Allianz Life Insurance Company

Bajaj Allianz Life Insurance Company, founded in August 2001, is a joint venture between the Global Insurer and Asset Manager, Allianz SE and Bajaj Finserv Limited, a diversified NBFC based in India. The Company has its headquarters in, Pune, Maharashtra (India) and is a leading Life Insurance Company in India. The Company sells a range of Life Insurance Plans such as Term Insurance Policies, Savings Plans, Investment Plans, Child Insurance Plans, Group Insurance Plans and Pension Plans. Bajaj Allianz Life Insurance Company reported a Gross Written Premium (GWP) Rs19,462 crore in FY 2023, a growth of 21% on a Y-o-Y basis while the Company earned a profit after tax of Rs390 crore during FY2023 as compared to the profit of Rs324 crore for FY2022. Bajaj Allianz Life Company’s Retail Claim Settlement Ratio stood at 99.04% for FY23. The Company has a strong tie up with Insurance Agents, Insurance Brokers and Banks to distribute its products.

Bharti AXA Life Insurance Company

Bharti AXA Life Insurance Company is a Joint Venture between Bharti Enterprises - one of India’s leading business groups and the Paris-headquartered AXA Group. The Company began operations in 2006. The Company reported a Gross Written Premium (GWP) of Rs2921 Crore in FY23, a growth of 12% over the GWP of Rs2601 Crores in FY22.The Loss for FY23 stood at Rs203 Crore vs a Loss of Rs342 Crores in FY22. The Claim Settlement Ratio for Bharti Axa Life Insurance Company stood at 99.09% in FY22 The Company sells a range of Life Insurance Plans such as Term Insurance Policies, Savings Plans, Retirement and Pension Plans, Child Insurance Plans and Group Insurance Plans.

Canara HSBC Life Insurance Company (Formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited)

Canara HSBC Life Insurance, founded in 2008, is a Joint Venture between Canara Bank (51%) and HSBC Insurance (Asia Pacific) Holdings Limited (26%). Punjab National Bank is also a shareholder of the Company, holding 23% as an investor. The Company offers a range of life insurance products across Individual and Group space comprising of Life, Term Insurance Plans, Retirement Solutions, and employee benefit segments. Canara HSBC Life Insurance Company reported a strong performance in FY23 with Gross Written Premium of Rs7197.4 Crores as compared to a Gross Written Premium of Rs5889.9 Crores in FY22. The Profit After Tax stood at Rs91 Crore in FY23 vs Rs10 Crores in FY22. Canara HSBC Life Insurance Company’s Individual Claim Settlement Ratio for FY23 stood at 99.01%.

Edelweiss Tokio Life Insurance Company

A prominent player in India’s new age of life insurance is Edelweiss Tokio Life Insurance Company Ltd, which was founded in 2011. It is a joint venture between Tokio Marine, a Japanese life insurance company, and Edelweiss, a well-known financial services company founded in India. The company’s ownership is divided into a ratio of 74:26 between Tokio Marine and Edelweiss, respectively. The Company sells a range of Life Insurance Plans such as Term Insurance Policies, Guaranteed Income Plans, Retirement Plans and Group Insurance Plans. The Company reported a Total Premium of Rs1690.5 Crores in FY23 as against Rs1464.2 Crores in FY22 while the Loss After Tax for FY23 stood at Rs198.1 Crore vs Rs225.3 Crores in FY22. Edelweiss Tokio Life Insurance Company reported a Claim Settlement Ratio of 99.20% for FY23.

Future Generali Life Insurance Company

Future Generali India Insurance Company Limited is a joint venture between the Generali Group, a leading global insurance company with a 74% stake, and the Future Group. The company provides a range of life insurance solutions to individuals and businesses to such as Term Plans, Unit Linked Insurance Plans, Child Plans, Savings Plans and Retirement Plans. The Company reported a Total Premium of Rs1758 Crores in FY23 vs a Premium of Rs1434 Crores in FY22, an increase of 23% on a Y-o-Y Basis. The Company reported a Loss of Rs197 Crores in FY23 vs a Loss of Rs184 Crores in FY22. Future Generali Life Insurance Company’s Claims Settlement Ratio for Individual claims stood at 95.04% for the FY23 as against 96.15% in FY22.

HDFC Life Insurance Company

HDFC Life Insurance Company India is a Life Insurance Company promoted by Housing Development Financial Corporation Ltd. and Abrdn (Mauritius Holdings) 2006 Limited, a global investment company. The Company was established in 2000 and ranks amongst the top 3 life insurers in India, offering a range of individual and group insurance solutions meeting various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health. Currently, the Company has 498 branches throughout India and tie-ups with leading Insurance Brokers, Agents and Banks. The Company acquired Exide Life Insurance in 2022. HDFC Life Insurance Company reported a Total Premium of Rs57533 Crores and Profit After Tax of Rs1360 Crores in FY23. The Company has covered 6.8 Crore lives till now. The Individual Claim Settlement Ratio for HDFC Life stood at 99.3% in FY23.

ICICI Prudential Life Insurance Company

ICICI Prudential Life Insurance Company of India is promoted by ICICI Bank Ltd. and Prudential Corporation Holdings Limited. The Company began operations in FY2001 as India’s first private-sector Life Insurance Company. ICICI Prudential Life Insurance Company provides a comprehensive range of products, including Term Insurance Plans, Group Term Life Insurance, ULIP Plans, Pension Plans, Child Plans, and Guaranteed Return Plans. ICICI Prudential Life Insurance Company reported a Total Premium of Rs39933 Crores and Profit After Tax of Rs811 Crores in FY23. The Company has covered 7.72 Crore lives till now. The Individual Claim Settlement Ratio for ICICI Prudential Life Insurance Company stood at 95.3% in FY23.

Kotak Mahindra Life Insurance Company

Korak Mahindra Life Insurance Company is one of the fastest growing Life Insurance Companies in India. The Company is a 100% subsidiary of Kotak Mahindra Bank and offers a range of Life Insurance Plans such as Term Insurance Plan, ULIP Plans, Retirement Plans and Child Plans. Kotak Mahindra Life Insurance Company reported a Total Premium of Rs15320 Crores in FY23 as against a Premium of Rs13015 Crores in FY22 and Profit After Tax of Rs1082 Crores in FY23 vs a Profit After Tax of Rs469 Crores in FY22. Kotak Mahindra Life Insurance Company reported a Claim Settlement Ratio of 99.5% in FY22.

Life Insurance Corporation of India

The Life Insurance Corporation of India, also known as LIC, is the country’s oldest Life Insurance Company. The Company was established in 1956 and listed on India’s stock exchanges on 17 May 2022. The Company offers a wide range of life insurance plans such as Term Insurance, Savings Plan, Pension Plans and Unit Linked Plans. The Company distributes its products through tie-ups with 11,36,201 active Insurance Agents across the country. The Life Insurance Corporation of India (LIC) reported a Total Premium of Rs4,74,004 Crore in FY23 vs a Total Premium of 4,27,419 in FY22 while Profit After Tax for FY23 stood at Rs36,397 Crores in FY23 vs a Profit After Tax of 4,043 Crores in FY22. Life Insurance Corporation of India (LIC) sold 2,04,28,937 Insurance Policies in FY23. LIC reported a high Claim Settlement Ratio for FY23 of 98.52%

Max Life Insurance Company

Max Life Insurance is a Joint Venture between Max Financial Services (80%) and Axis Bank (20%). The Company commenced operations in 2001 and has its headquarters in New Delhi. The Company offers comprehensive long-term Protection (Term Insurance), Savings, Child Insurance, Retirement and Group Insurance Plans. Max Life Insurance Company reported a Gross Written Premium of Rs25,342 Crores for FY23, an increase of 13% on a Y-o-Y basis while Profit After Tax of Rs435 Crores in FY23 as compared to a Profit After Tax of 387 Crores in FY22. The Claim Settlement Ratio for Max Life Insurance Company stood at 99.51% in FY23.

PNB Metlife India Insurance Company

PNB MetLife India Insurance Company Limited (PNB MetLife) is a leading Life Insurance Company in India. The Company’s shareholders include MetLife International Holdings LLC (MIHL), Punjab National Bank (PNB), M. Pallonji and Company Private Limited, Jammu & Kashmir Bank Limited (JKB), and other investors, with MIHL and PNB being the promoters of the Company. The Company began operations in India in 2001. PNB Metlife has a portfolio of 25 Retail and 15 Group Products to cater to customer requirements through 4 life stages - Child Education, Family Protection, Long-Term Saving and Retirement. The Company distributes its products through 139 branches, 15 banks and tie-ups with 19500+ Insurance Agents. PNB Metlife India Insurance Company reported a Gross Written Premium of Rs8,785 Crores for FY23 vs a Premium of Rs7,348 Crores in FY22 while Profit After Tax stood at Rs112.2 Crores in FY23 as compared to a Loss of Rs71 Crores in FY22. The Company issued 2,87,742 Insurance Policies in FY23. The Individual Claim Settlement Ratio for PNB Metlife India Insurance Company stood at 99.06% in FY23.

Indiafirst Life Insurance Company

IndiaFirst Life Insurance Company is a Life Insurance Company based in Mumbai, India. It is a joint venture between Bank of Baroda, Union Bank of India, and Carmel Point Investments India. The Company offers a range of offers a range of Term Life Insurance Plans, Savings and Retirement Plans to its customers. India First Life Insurance Company reported a Gross Written Premium of Rs6,075 Crores in FY23 vs a Premium of Rs5,187 Crores in FY22 while Profit After Tax stood at Rs76 Crores in FY23 as compared to a Loss of Rs281.7 Crores in FY22. The Company sold 3 lakh plus Individual Insurance Policies and paid death claims of Rs658 Crores in FY23. The Claim Settlement Ratio for IndiaFirst Life Insurance Company stood at 98.04% in FY23.

Pramerica Life Insurance Limited

Pramerica Life Insurance Company is a Joint Venture between Piramal Capital and Housing Finance Limited and Prudential International Insurance Holdings, Ltd., a fully owned subsidiary of Prudential Financial, Inc. Pramerica Life Insurance started operations in India on 1st September 2008. The Company sells 17 Retail and 11 Group Products across a wide variety of Plans such as Term Insurance Plans, Retirement Plans, Child Insurance Plans and Savings Plans. Pramerica Life Insurance has a Pan-India presence with 130 Plus Branches and multiple distribution channels. Pramerica Life Insurance Limited reported a Gross Written Premium of Rs1,495 Crores in FY23 vs a Premium of Rs1,099 Crores in FY22 while Profit After Tax stood at Rs42.6 Crores in FY23 as compared to a Loss of Rs5 Crores in FY22. The Company sold 34,603 Insurance Policies in FY23 vs 28,995 Insurance Policies in FY22. The Individual Claim Settlement Ratio for Pramerica Life Insurance Company stood at 98.8% in FY23.

Reliance Nippon Life Insurance Company

Reliance Nippon Life Insurance Company is a leading private sector Life Insurance Company in India with 10 million Policyholders and a strong distribution network of 713 offices across the country. The Company has been rated amongst the Top 25 companies to work for by Great Place to Work 2023. Reliance Nippon Life Insurance Company caters to 5 segments, namely Protection (Term Insurance), Child Insurance, Retirement Plans, Saving & Investment Plans, and Health Insurance Plans for individuals as well as Corporate entities. Reliance Nippon Life Insurance Company is a Joint Venture with Reliance Capital holding 51% stake in the Company and Nippon Life owning the remaining 29% Stake. Reliance Nippon Life Insurance Company reported a Gross Written Premium of Rs5,122 Crores in FY23 vs a Premium of Rs5,037 Crores in FY22 while Profit After Tax stood at Rs108 Crores in FY23 as compared to a Profit After Tax of Rs65 Crores in FY22. The Company has 23,63,697 Individual Insurance Policies and 403 Group Policies In-Force in FY23. Reliance Nippon Life Insurance Company reported an Individual Claim Settlement Ratio of 98.6% in FY23.

SBI Life Insurance Company

SBI Life Insurance Company, incorporated on 11th October 2000, is a joint venture of the State Bank of India and BNP Cardif. SBI Life Insurance Company’s wide range of life insurance products caters to individuals as well as group customers through Protection, Pension, Savings and Health solutions. The Company distributes its products through its extensive network of 39,000+ Partner Branches, 129 Insurance Brokers and 14 Bancassurance Partners. SBI Life Insurance Company reported a Gross Written Premium of Rs67,316 Crores in FY23, an increase of 15% from a Gross Written Premium of Rs58,760 Crores in FY22 while Profit After Tax stood at Rs1,721 Crores in FY23, an increase of 14% from a Profit After Tax of 1,506Crores in FY22. The Company issued 21.97 Lakh Insurance Policies in FY23. SBI Life Insurance Company reported an Individual Claim Settlement Ratio of 97.05% in FY23.

Shriram Life Insurance Company

Shriram Life Insurance Company is a Joint Venture between India’s leading financial conglomerate, the Shriram Group and the South Africa based Sanlam Group. The Company offers a range of insurance plans such as Retirement Plans, Term Insurance Plans, Savings Plans, Investment Plans to its customers. Shriram Life Insurance Company reported a Gross Written Premium of Rs2,546 Crores in FY23 vs a Premium of Rs2,350 Crores in FY22 while Profit After Tax stood at Rs156 Crores in FY23 as compared to a Profit After Tax of Rs2.5 Crores in FY22. The Company sold 2,90,156 Insurance Policies in FY23.

Star Union Dai-ichi Life Insurance Company

The Star Union Dai-ichi Insurance Company, established in 2009, is a Joint Venture between two of India’s leading public sector banks, Bank of India and Union Bank of India, and Dai-ichi Life Holdings, a leading Life Insurance Company in Japan. The Company offers Term Insurance Plans, Retirement Plans and Child Insurance Plans. Star Union Dai-Ichi Life Insurance Company reported a Gross Written Premium of Rs5,746 Crores in FY23, an increase of 39% on a Y-o-Y Basis while Profit After Tax stood at Rs127 Crores in FY23.

Tata AIA Life Insurance Company

Tata AIA Life Insurance Company is a Joint Venture between TATA Sons Pvt Ltd and the AIA Group, the largest, independent listed pan-Asian life insurance group in the world. The Company offers a wide range of life insurance plans such as Term Insurance, Savings Plan, Pension Plans and Unit Linked Plans. Tata AIA Life Insurance Company reported a Gross Written Premium of Rs19,975 Crores in FY23 vs a Premium of Rs14,071 Crores in FY22 while Profit After Tax stood at Rs505 Crores in FY23 as compared to a Profit After Tax of Rs70 Crores in FY22. Tata AIA Life Insurance Company reported an Individual Claim Settlement Ratio of 99.01% in FY23.

How to buy a Life Insurance Policy with Qian?

It is very simple to purchase a Life Insurance Policy with Qian. Our dedicated team will assist you with each step so that you are comprehensively covered. You can follow the below mentioned steps to purchase a Life Insurance Policy:

Step 1: Contact a Advisor at Qian. The advisor will assist and explain the Policy features in detail. He will also assist you in determining the appropriate Sum Assured Coverage required. You can finalise the Plan and Premium Payment Option with the assistance of the advisor at Qian.

Step 2: Provide the required information to purchase a Life Insurance Policy. The typical information required to purchase a Life Insurance Policy is as follows: - Type of Plan - Coverage Amount - Premium Payment Frequency - Policy Term - Return Preference – Market Linked or Guaranteed Returns - Smoking and Drinking Habits - Annual Income - Pre-Existing Diseases

Step 3: Purchase the Insurance Policy by paying the Premium Amount.

How do I file a Life Insurance Claim?

You need to follow the below mentioned steps to file an Insurance Claim under your Life Insurance Policy: - Access the Life Insurance Company’s official website, nearest office branch, or the helpline via e-mail or SMS for online claim filing. You can also intimate the claim to Qian representative who will file a Claim on your behalf. - Submit the following documents to avail the claim amount from the Insurance Company: - Duly Filled Claim Form - Death Certificate - Identity Proofs, PAN Card - Cancelled Cheque - FIR and Post Mortem Report in case of an Accident

Conclusion

Life Insurance is a critical element in securing your family’s financial future. Qian’s team will assist you with each and every step of the Life Insurance Policy, from explaining the Policy features, comparing various plans, purchasing the Policy to filing a Claim. If you have any query regarding Life Insurance, you can reach out to us via email at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you.