The most important thing you should probably do in 2025 is secure your family’s future. And that’s the best way to do that is by purchasing a term insurance policy.
Unlike other life insurance plans, such as ULIPs or endowment plans, purchasing a good term insurance policy can provide substantial coverage at affordable premiums, ensuring that your loved ones are financially protected in unforeseen circumstances. This is why selecting a reliable insurer is crucial for maximizing coverage benefits and ensuring a smooth claims process.
(Take a look at the infographics below - it’s a quick look into our tips to choose the top term insurers in India for 2025! But we have a bonus tip in our article below!)
Why Do You Need Term Insurance Policies in India in 2025?
Term insurance provides a financial safety net for your family in case of your untimely demise. It covers expenses such as outstanding debts, daily living costs, and future obligations like your children's education. Let’s take a closer look at this now –
- Outstanding Debts: Whether it’s a home loan, personal loan, car loan, or even credit card debt, these liabilities don’t disappear in your absence. Instead, they can become a significant burden for your next of kin. A term insurance policy ensures your family has the financial resources to repay these debts.
- Daily Living Costs: Life doesn’t stop for your family in your absence, nor do their daily expenses. From groceries and utility bills to transportation and healthcare, day-to-day living costs can quickly add up. Term insurance provides a steady financial cushion, ensuring your family can maintain their standard of living without having to compromise or dip into savings.
- Future Obligations: Beyond immediate needs, your family may have significant financial goals that you would have contributed to during your lifetime, such as your children’s education, marriage, purchasing a house, etc.
Friendly reminder: It’s easy to get lost comparing policies and premiums. Instead of spending hours on it, why not get personalised insurance advice from Ditto? We offer free consultations with zero spam! Just 30 minutes to clarify all your doubts. Book a call now!
This is why purchasing a reliable term insurance plan is the need of the hour. But how do you know what insurer to select? What are the important factors to look for? Well, here it is –
Tips To Choose the Best Term Insurance Providers in India
- Take a look at the term insurer's Claim Settlement Ratio (CSR): The CSR indicates the percentage of claims an insurer has settled in a financial year. A higher CSR reflects the insurer's reliability in honouring claims (the ideal CSR for life insurance providers is set at 97 or above). However, remember that a CSR above 100% is not good, as it means the insurer delays in settling claims.
- Analyse the Amount Settlement Ratio (ASR) of the Term Insurance Provider: While the Claim Settlement Ratio (CSR) highlights the number of claims settled, the Amount Settlement Ratio reveals the total claim amount paid out relative to the total premiums collected.
ASR = (Total amount spent in settling claims during a year / Total Amount of Claims Received) × 100
For instance, if an insurer has an ASR of 90%, it means the insurer has paid out ₹90, settling claims for every ₹100 of the claim received. This metric is particularly important because it highlights if the insurer has been partial towards settling claims for a lower amount only.
An ideal ASR for a life insurance company is 90 or above.
- Find out the Complaint Volume of the Term Insurer: Assessing the number of complaints lodged against an insurer provides insight into customer satisfaction and service quality. Lower complaint volumes suggest better customer service and fewer issues during claim settlements.
The complaint volume of a life insurance company is calculated per 10,000 claims and reflects how frequently policyholders encounter issues with the insurer. Naturally, the lower the complaint volume, the better it is for both the policyholder and the insurer.
(Note: Apart from this, you must also focus on the insurer's claim settlement experience. This is why if you’re a Ditto customer, we fight tooth and nail to settle all genuine claims. Let us know if you need some assistance!)
- Consider the Average Annual Business Volume of the Term Insurance Provider: This metric reflects the insurer's market presence and financial stability. A higher business volume indicates a well-established company with a broad customer base, which can be reassuring for you as a policyholder. This is because, at the end of the day, when the time comes for the insurer to settle your claim, a financially stable company is more likely to have the resources to ensure a smooth and timely payout.
| Bonus: Make sure that you have the best possible combination of term insurance riders |
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| - Critical Illness Rider: This rider provides a lump sum payout if you are diagnosed with a critical illness like cancer, heart attack, or kidney failure. The payout can cover medical expenses, loss of income, or lifestyle changes during recovery. |
| - Waiver of Premium: If you opt for this rider, the insurer waives future premiums if you face a total and permanent disability or are diagnosed with a critical illness. This ensures your policy remains active, even when you cannot work or pay premiums, offering peace of mind. |
| - Accidental Total and Permanent Disability Rider: With this rider, the insurer provides financial support if an accident leaves you permanently disabled. It usually offers a lump sum payout or an income replacement, ensuring you can manage medical expenses and maintain financial stability despite losing your ability to work. |
| - Increasing/Decreasing Cover: The increasing cover rider allows your cover amount to grow over time, helping your policy keep pace with inflation and rising financial responsibilities. On the other hand, a decreasing cover rider reduces your coverage over time, which can be helpful if your financial liabilities (like a home loan) decrease as you age. |
| - Life Stage Benefit: With this rider, you have a provision to increase your coverage at significant milestones in your life, such as marriage, the birth of a child, or purchasing a house. It’s an excellent option for those who anticipate greater responsibilities in the future and want flexibility without buying a new policy. |
| - Accidental Death Benefit: In the event of death due to an accident, this rider will ensure an additional payout to your nominee on top of the base policy cover amount. |
What are the Top Term Insurance Providers in India for 2025?
| Top Term Insurance Providers in India for 2025 | Average Claim Settlement Ratio (FY 22 -24) | Average Amount Settlement Ratio (ASR) | Average Complaint Volume per 10k claims (FY 22 -24) | Average Annual Business Income (FY 22 -24) | Best Term Insurance Plans Offered by the Insurer |
|---|---|---|---|---|---|
| Axis Max Life Insurance | 99.50% | 95.50% | 7.3 | ₹9,296 | Axis Max Life Smart Secure Plus |
| TATA AIA Life Insurance | 98.91% | 92.70% | 3 | ₹7,599 | Tata AIA Maha Raksha Supreme |
| Bajaj Allianz Life Insurance | 99.11% | 93.00% | 4.4 | ₹10,456 | Bajaj Allianz Smart Protect Goal |
| ICICI Prudential Life Insurance | 97.52% | 92.10% | 14.3 | ₹17,198 | ICICI Prudential iProtect Smart |
| HDFC Life Insurance | 99.20% | 87.30% | 2 | ₹27,490 | HDFC Life Click2Protect Super |
Why Talk to Ditto for Your Term Insurance?
At Ditto, we’ve assisted over 3,00,000 customers with choosing the right insurance policy. Why customers like Nityanand below love us:
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Conclusion
Selecting a good term insurer can make or break your family’s financial security during unforeseen circumstances, ensuring they have the necessary support when it matters most. You should remember that the best plan isn’t always the most expensive plan or the one with the most features. Instead, focus on the insurer’s credibility and claims process to find a policy that offers the best value.
