Best Term Insurance Companies in India 2025

At Ditto, we use a data-driven Insurer Rating Methodology to create an objective list. Here, each insurer is rated on measurable factors like Type of Insurer, Year Founded, Amount Settlement Ratio (ASR), Claim Settlement Ratio (CSR), Gross Written Premium or GWP (to know the size and scale), Complaint Volume, and Online Service Availability. 

These factors together form Ditto’s Insurer Score. It is a 5-point scale that makes it easy to compare companies.

The above rankings are as of 27th November, 2025

Why Have Term Insurance?

There’s no denying that if there’s one product you should buy in insurance, it’s term insurance. It’s the simplest, purest form of life insurance and the cornerstone of any financial plan. If you pass away during the policy term, your family receives the full sum assured. And this simplicity is exactly what makes it such a powerful product by keeping the premiums affordable, by giving a high cover, and with no hidden deductions or complicated structures.

This is why we recommend starting with a solid term cover, and only then considering other insurance products if necessary.

How to Choose the Best Term Insurance Company in India 2025

A good insurer needs to perform well where it matters most, such as claim reliability, complaint handling, solid financials, and simple digital access.

But looking at any of these parameters in isolation can be misleading. For instance, an insurer may show an excellent CSR, yet still struggle with high-value claim payouts, rising complaint volumes, slow servicing, or weak digital processes.

That’s why we built a transparent, data-based system to assess every insurer objectively.

Here are the 5 factors behind our rating

Each insurer is scored on five measurable parameters. These combine into a 10-point Insurer Rating, which we then simplify into a 5-point Ditto Insurer Score for easier comparison.

Our Rating Formula:

Insurer Rating =  (0.2 × CSR) + (0.1 × ASR) + (0.15 × Complaints) + (0.4 × GWP) + (0.15 × Online Services)

Here’s what each metric means:

Together, these five factors show who’s financially sound, pays claims reliably, and offers a smooth digital experience.

In simple terms, each parameter is first converted into a numerical score based on the insurer’s performance. We then multiply each score by its assigned weight (for example, CSR contributes 20%, GWP contributes 40%), and add these weighted values to arrive at a single 10-point Insurer Rating. Finally, this 10-point rating is simplified into a 5-point Ditto Insurer Score, so you can compare insurers at a glance while still relying on the full analytical depth behind the scenes.

If you want to see how each insurer scores on every parameter, check out our detailed rating methodology by clicking here.

With that understanding, let’s take a detailed look at the top 10 term insurance companies in India.

Top 5 Term Insurance Companies: Detailed Breakdown

Axis Max Life Insurance - 4.9/5

Axis Max Life performs strongly across every major parameter. The numbers are solid, the products are well-designed, and the company has built a reputation for reliability that goes beyond just claims.

a) The Numbers Speak for Themselves

b) Pricing is Extremely Competitive
Axis Max Life offers some of the most competitive premiums in the market (even without the 1st year salaried/existing customer discounts). Pricing isn’t part of our Insurer Rating (“price no bar”), but in practice, it’s among the best value options.

c) Customer Experience and Servicing
Turnaround times are tight, servicing is predictable, and complaints are rare. Products are well-balanced, riders are useful, and customers often ask for their plans by name, which is generally a sign of real trust.

d) Where Can it Improve?
Brand recall is still lower than giants like LIC, HDFC, and ICICI. But with Axis Bank’s partnership and their increasing ownership in the venture, this gap is closing fast.

HDFC Life Insurance - 4.75/5

HDFC Life is a high-confidence pick with great claim performance, large scale, and strong brand recall. It ranks just below Axis Max Life mainly because of a slightly lower ASR.

a) The Numbers Speak for Themselves

b) Pricing and Products
Pricing is competitive but not always the cheapest. Here, you are paying for the scale, stability and brand value. The product range is broad and offers practical rider choices.(Pricing isn’t part of our Insurer Rating. The model is “price no bar” — but we mention it for context.)

c) Execution and Customer Experience
Some early servicing friction has eased as scale has grown. Claims handling is consistently reliable based on public data and our observations.

d) Where it Can Improve
Reduce underwriting friction in certain medical profiles and improve pricing in higher-age and cover amount bands.

Bajaj Life Insurance - 4.65/5

Bajaj Life (formerly Bajaj Allianz) is reliable, with strong claim numbers, low complaints, and smooth servicing. It sits just below the top two because of smaller scale and a slightly lower ASR but excels in how it handles onboarding, especially for NRI applicants.

a) The Numbers Speak for Themselves

b) Onboarding and Underwriting
Medicals are arranged efficiently, and paperwork is simple, especially for NRIs, where medicals are usually paid for by the insurer. Overall, the onboarding process has less friction than most peers based on our sample set. 

c) Pricing and Products
Pricing is among the most competitive. Even after ignoring a variety of first year discounts, it offers on its products for salaried folks, first time insurance buyers, and online purchase. (Pricing doesn’t feature in our insurer rating; we note it only for context.)The product lineup is decent though it isn’t always the most feature-heavy.

d) Where it Can Improve
The product catalogue could be more distinctive, and underwriting should remain smooth as the insurer scales.

ICICI Prudential Life Insurance - 4.4/5

ICICI Prudential is one of the biggest names in life insurance, with strong claim metrics and wide reach. It sits just below the top three due to a higher complaint volume and slight servicing variability.

a) The Numbers Speak for Themselves

b) Pricing and Products
Pricing is quite good for higher cover amounts due to tiered pricing/ bulk discounts. Note that pricing is not part of our Insurer Rating. The product catalogue is extensive, with multiple term variants and practical rider choices to tailor coverage.

c) Customer Experience
Underwriting is structured and generally predictable. Claims handling is consistent with the company’s scale and ratios.

d) Where it Can Improve
Relatively higher complaint volumes remain a weak spot for ICICI Prudential and could erode trust despite strong fundamentals. While the average is higher, the trend shows a decline in complaint volume.

SBI Life Insurance - 4.4/5

SBI Life is one of India’s largest insurers, combining strong claim numbers with nationwide reach. It scores high on both CSR and ASR, though its complaint volume keeps it slightly below the top four.

a) The Numbers Are Pretty Good

b) What We Like
SBI Life comes across as a steady, well-managed quasi-private insurer that benefits from the trust people naturally associate with SBI. In our review, the digital journey works well, customer support handles queries reliably, and the product range is wide. However, it has only 2-3 core plans and lacks important features and riders. 

The data also holds up. Its claim ratios are better than LIC’s, which adds confidence. It isn’t a Ditto partner, but based on performance and user experience alone, SBI Life remains a dependable choice for buyers who want a large, familiar brand with smooth digital servicing.

Apart from the top 5 insurers, you can also check out a few other term insurance companies, such as:

TATA AIA Life Insurance - 4.3/5

TATA AIA combines the trust of the Tata Group with AIA’s global expertise in insurance. It scores high on claim performance, customer service, and financial stability, though its scale and complaint volumes keep it slightly below the top five.

Metric Snapshot: CSR - 99.21%, ASR - 95.10%, Complaints - 3 per 10,000 claims, Gross Written Premium - ₹9,253 crore.

Strengths: Excellent claim ratios, responsive service, strong brand trust, and a growing digital footprint.

Weaknesses: Smaller scale compared to leaders, and their product stack is on par with our other partners. 

Kotak Life Insurance Co. Ltd. - 4.2/5

Kotak Life delivers on most things. The key metrics are solid, and the product catalogue is decent. They don't make our top 5 because their scale is modest at best. But this could be a brand you could consider if you have a long-standing association with the Kotak group. 

Aditya Birla Sun Life Insurance Co. Ltd. - 3.95/5

Aditya Birla Sun Life impresses with strong value-term designs and a clean digital onboarding experience, making it a compelling pick for budget-focused buyers who prefer a streamlined online journey. 

That said, our review of independent customer feedback indicates occasional friction in claims support and in clarity of servicing, something to keep in mind if after-sales experience is your top priority.

LIC of India - 3.85/5

LIC remains India’s largest life insurer by far with unmatched brand trust, decades of legacy, and the broadest offline servicing network. It performs well on scale and stability, though its digital ecosystem and product catalogue lag behind newer private players, which is why it doesn’t make our top 5. 

While LIC’s numbers aren’t as sharp as the top private insurers, its legacy and offline servicing strength make it a dependable option, especially for those comfortable buying through agents rather than digital platforms.

PNB MetLife India Insurance Co. Ltd. - 3.48/5

PNB MetLife offers a valuable range of features (spouse/child cover) and a solid distribution network through its bank-partner model. But given their smaller scale of operation, they don't rank very highly in our model. 

That being said, if you prioritize features such as spouse and child coverage, the insurer could be a good pick.

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Conclusion

There isn’t a single “best” term insurer for everyone. Each company has its own strengths. Some are exceptionally reliable with claims, others offer strong financial stability, and a few stand out for their product design or overall user experience. The right choice depends on what matters most to you.

So it’s important to understand what each insurer does well, how consistently they perform across claims and servicing, and whether they can support your family reliably in the long run.

Before finalising your plan, always read the brochure carefully and speak with a licensed advisor. Because a term plan is a long-term contract, and choosing the right insurer matters!

For more details on how we approach reviews and partnerships, you can refer to our Editorial Policy & Disclaimers.

And as always, remember that this list is based on publicly available information and is not personalised advice. Please review the policy brochure carefully and speak with a licensed advisor before choosing a plan.