When it comes to securing your family’s financial future, term insurance remains the most affordable and effective way to provide life cover. In India, dozens of insurers offer term plans, but not all are equal in claim settlement ratio, premiums, flexibility, or trustworthiness. In this detailed post, we will rank the top term insurance companies in India (2025) so you can make an informed decision.
What Is Term Insurance?
Term insurance is a life insurance policy that offers coverage for a specific period (term). If the insured dies during this term, the nominee gets a lump-sum payout. It is pure life cover — no maturity benefit, making it much cheaper than endowment or ULIP plans.
Criteria for Ranking
We’ve ranked the top term insurance companies in India based on:
- Claim Settlement Ratio (CSR) – How often claims are paid
- Solvency Ratio – Financial strength of insurer
- Premium Affordability
- Customizable Benefits (Add-ons)
- Customer Service & Digital Process
- IRDAI Guidelines Compliance
Data is based on IRDAI Annual Report 2024–25 and verified sources.
1. LIC of India (Life Insurance Corporation)
Plan Name: LIC Tech Term Plan
The LIC Tech Term is a pure protection plan available only online. It offers:
- Level sum assured or increasing sum assured options
- Accident Benefit Rider
- Coverage up to 80 years of age
- Flexible premium paying options: Single, Regular, or Limited
LIC is trusted by millions of Indians for generations. Though it doesn’t offer flashy digital tools, its wide reach and legacy make it a solid option.
- Claim Settlement Ratio: 98.5%
- Solvency Ratio: 1.88
- Pros: High claim approval, traditional trust, physical branch support
- Cons: Not ideal for digital-first customers, higher premiums
2. HDFC Life Insurance
Plan Name: Click 2 Protect Life
HDFC Life’s Click 2 Protect Life is known for its variety and flexibility:
- Offers Life & CI Rebalance option
- Critical Illness cover up to 36 diseases
- Income Plus option to receive monthly income after 60
- Policy term up to 85 years
It supports complete online buying and claim processes, which makes it a preferred choice among working professionals.
- Claim Settlement Ratio: 99.4%
- Solvency Ratio: 1.98
- Pros: Customizable cover, lifestyle protection, long term validity
- Cons: Mandatory medical check-ups above certain age/cover levels
3. Max Life Insurance
Plan Name: Smart Secure Plus Plan
Max Life’s flagship term plan includes valuable features such as:
- Coverage till age 85
- Return of premium option
- Accidental death benefit up to ₹2 crore
- Terminal illness benefit
- Voluntary Top-up option to increase cover after milestones
It combines low premiums with great rider flexibility. Great for salaried individuals and young couples.
- Claim Settlement Ratio: 99.5%
- Solvency Ratio: 2.01
- Pros: Budget-friendly, excellent riders, ROP option
- Cons: Slower KYC completion in certain cases
4. ICICI Prudential Life
Plan Name: iProtect Smart
This term insurance plan is ideal for digitally-savvy policyholders:
- Terminal illness cover included
- Accelerated payout for terminal illness
- Option to receive benefits in installments
- Whole life cover up to 99 years
With ICICI, claims are often settled digitally, and customer service is responsive via app and website.
- Claim Settlement Ratio: 98.7%
- Solvency Ratio: 2.05
- Pros: Digital-first interface, robust coverage options
- Cons: Mandatory medical checkups, slightly complex premium calculator
5. Tata AIA Life Insurance
Plan Name: Sampoorna Raksha Supreme
This comprehensive plan offers:
- Life cover up to 100 years
- Accidental and terminal illness riders
- Waiver of premium on disability
- Multiple payout options – lump sum, monthly, or combo
Tata AIA is a rising player thanks to strong CSR and feature-rich policies that merge term and health benefits.
- Claim Settlement Ratio: 99.01%
- Solvency Ratio: 2.13
- Pros: Great health riders, legacy brand, flexible payments
- Cons: Plan structure may be too detailed for first-time buyers
6. SBI Life Insurance
Plan Name: eShield Next
This term plan is popular for its flexible customization:
- Increasing, Level, and Level + Increasing options
- Covers lifestyle habits like smoking explicitly
- Accelerated terminal illness benefit
- Choice of 3 benefit structures
A good pick for SBI customers or semi-urban users looking for a mix of branch support and digital.
- Claim Settlement Ratio: 98.2%
- Solvency Ratio: 2.16
- Pros: SBI trust factor, flexible sum assured growth
- Cons: Online journey lacks polish, fewer advanced riders
7. Bajaj Allianz Life Insurance
Plan Name: Smart Protect Goal
This plan is known for its lifestyle add-ons:
- Cover till age 99
- Return of premium on survival
- Waiver of premium on disability
- Critical illness cover for over 55 diseases
Great for urban individuals who want a customizable experience and are comfortable with mobile management.
- Claim Settlement Ratio: 99.0%
- Solvency Ratio: 2.04
- Pros: Strong coverage options, lifestyle-specific add-ons
- Cons: Less branch accessibility in remote areas
Term Insurance Company Comparison Table (2025)
| Company | CSR (%) | Solvency Ratio | Popular Plan | Online Purchase | Best For |
|---|---|---|---|---|---|
| LIC of India | 98.5 | 1.88 | Tech Term | No | Traditional Trust |
| HDFC Life | 99.4 | 1.98 | Click 2 Protect Life | Yes | Urban Professionals |
| Max Life | 99.5 | 2.01 | Smart Secure Plus | Yes | Young Families |
| ICICI Prudential | 98.7 | 2.05 | iProtect Smart | Yes | Digital-Savvy Users |
| Tata AIA | 99.01 | 2.13 | Sampoorna Raksha Supreme | Yes | Health-Focused Families |
| SBI Life | 98.2 | 2.16 | eShield Next | Partial | Semi-urban / SBI Customers |
| Bajaj Allianz | 99.0 | 2.04 | Smart Protect Goal | Yes | Rider Customization Seekers |
Tips Before Choosing a Term Plan
- Always compare claim settlement ratios from IRDAI
- Avoid too-low premiums that skip medicals
- Choose riders (like accidental, critical illness) carefully
- Ensure you disclose all health & income info honestly
- Pick policies that allow increasing coverage
- Check whether return of premium is offered, if you want maturity benefit
Final Verdict
Choosing the right insurer is just as important as choosing the right sum insured. The top term insurance companies in India (2025) listed above provide a great mix of claim reliability, customer experience, and plan flexibility.
If you’re young and digitally savvy, ICICI, HDFC, or Max Life might be ideal. For traditional trust and a physical branch network, LIC or SBI Life works better. If you’re health-conscious and want extended cover, Tata AIA or Bajaj Allianz offer great bundled benefits.
Always review policy brochures, understand inclusions and exclusions, and compare premiums side-by-side before making your final decision. If possible, consult with a certified insurance advisor.