Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
Importance of Insurance
Insurance is an essential cost that one needs to make in order to secure the future of his/her family. Even the financial advisers suggest you to avail insurance before you start with your financial planning. Insurance is an important necessity for various reasons. Following are some of the reasons:
- Insurance provides you with financial security and safety net:
If something unforeseen happens to the bread earner of the family, the financial situation of the family may come to a standstill. Insurance compensation can become a source of income for the family and stabilise the finances. With insurance, your family is financially secure even when you are not around.
- Insurance safeguards you and your family’s future goals:
The sudden demise of a family’s breadwinner can have the worst repercussions on the family’s financial stability. With insurance, your family can achieve financial stability even when you are not around. Also, their future financial goals will stay intact.
- Insurance encourages savings:
There are various products offered by the life insurance companies that not only provide life cover but also provide a provision for wealth creation to achieve future goals. The requirement of periodic investment into such products encourage savings. For example, endowment plans, money back plans, unit-linked investment plans etc.
- Insurance is an effective risk management tool:
The insurance covers uncertainties such as the risk of death, risk of getting hit, falling sick and many more. Insurance is all about managing these risks effectively. Every insurance policy provides coverage against insured risk.
- Insurance provides peace of mind:
As insurance manages risk effectively, you can only make regular payments towards insurance and stay tension-free. Peace of mind is what you get by insuring.
Top 20 Life Insurance Companies in India
1. Life Insurance Corporation of India
LIC is market leader in India even after 17 years of privatization of insurance sector. It has 2048 branch offices in the country and 992 satellite offices and 300 mini offices.
2. Birla Sun Life Insurance Company Limited
It is a joint venture between Sun Life Financial Inc and Aditya Birla Group. It is one of the leading international financial services organizations from Canada.
3. HDFC Life Insurance Company Limited
It is a joint venture between HDFC and Standard Life. HDFC is India’s premier housing finance company. Standard Life is a leading provider of investments and long-term savings. It is headquartered inEdinburgh.
4. ICICI Prudential Life Insurance Company Limited
It’s a joint venture between ICICI Bank and Prudential plc. ICICI Bank is a premier financial powerhouse in India. Prudential plc is a leading international financial services group headquartered in UK.
5. Exide Life Insurance Company Limited
It has headquarters in Bengaluru. It is owned by Exide Industries Limited which is an Indian battery manufacturing company.
6. Edelweiss Tokio Life Insurance Company Limited
The company is a joint venture between Edelweiss Financial Services, one of India’s leading financial services companies and Tokio Marine Holdings Inc., one of the oldest and the biggest insurance companies
7. Max Life Insurance Company Limited
It is a joint venture between Mitsui Sumitomo Insurance Co. Ltd and Max India Ltd. Mitsui is a member
of AD&MS Insurance Group. Max India is a leading Indian multi-business corporate.
8. PNB MetLife India Insurance Company Limited
It is a joint venture where Punjab National Bank (PNB) and MetLife Inc. They are the majority shareholders. PNB MetLife Insurance company offers types of life Insurance plans & policies like term plans, saving plans & pension plans.
9. Kotak Life Insurance Company Limited
It is a joint venture between Old Mutual plc and Kotak Mahindra Bank Ltd.. Old Mutual provides asset management, banking, life assurance and general insurance in Africa, the Americas, Asia and Europe.
10. SBI Life Insurance Company Limited
SBI Life is a joint venture between BNP Paribas and State Bank of India. BNP Paribas is a leading financial services group based out of France. Largest public sector bank in India is SBI.
11. Tata AIA Life Insurance Company Limited
It is a joint venture between the Tata Sons and AIA Group. AIA is one of the largest Pan Asian Insurance group. Tata’s prominent leadership position is combined by Tata AIA Life in India.
12. Reliance Life Insurance Company Limited
It is a joint venture between the Nippon Life Insurance of Japan and Reliance Capital. Reliance Nippon Life Insurance Company (RNLI) is one of the life insurance companies in India. The firm offers life insurance products targeted at individuals and groups, catering to four distinct segments: protection, children, retirement and investment plans.
13. Aviva Life Insurance Company Limited
Aviva is UK’s leading insurer. Dabur is a leading producer of traditional healthcare products in India. Aviva India is an Indian life assurance company, and a joint venture between Aviva plc, a British assurance company, and Dabur Group, an Indian conglomerate. Aviva began operations in July 2002 as a joint venture with Dabur Group, one of India’s oldest business houses
14. Shriram Life Insurance Company Limited
It is a joint venture between the Shriram Group and the Sanlam group. Shriram group is one of the leading financial services group in India. The Sanlam Group is one of the largest providers of life insurance based
in South Africa.
15. Bharti AXA Life Insurance Company Limited
It is a joint venture between the AXA Group and Bharti Enterprises. Bharti AXA Life brings together Bharti, one of India’s leading business groups with interests in telecom, agri business and retail, and AXA, one of the world’s leading companies in financial protection and wealth management.
16. Future Generali India Life Insurance Company Limited
It is a joint venture between Italy-based Generali Group and the Future Group. Generali Group is one of the leading insurance groups in Europe.Future Group is one of India’s leading business houses withmultiple businesses.
17. IDBI Federal Life Insurance Company Limited
It is a joint venture of IDBI Bank, Federal Bank, and Ageas. Ageas is an insurance giant based out of Europe with a heritage spanning more than 180 years.
18. Canara HSBC Oriental Bank of Commerce LIC Limited
It is a joint venture of Canara Bank, Oriental Bank of Commerce and a multinational bank HSBC. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited is a joint venture between Canara Bank, HSBC Insurance and Punjab National Bank . The Canara Bank owns 51 per cent stake in the company and Punjab National Bank owns 23 per cent, while HSBC Insurance (Asia Pacific) Holdings Limited is a foreign partner with 26 per cent stake in the company.
19. Cholamandalam Insurance
Based on the T3 motto- ‘Trust, Technology and Transparency’ Cholamandalam GI Co. Ltd. was founded in the year 2001. In a very short span of time, the company has spread its business across the country and now it has 109 branches across the country. In the year 2011, it was awarded the Financial Insights Innovation Award at the Asian insurance Congress for its innovativeness.
20. Aegon Life Insurance Company Limited
Aegon is a joint venture between Aegon and Times Group. Aegon is an international insurance company. Times Group is India’s largest media house.
21. DLF Pramerica Life Insurance Company Limited
It is a joint venture between DLF Limited and Prudential International Insurance Holdings. DLF Limited is one of India’s largest real estate companies. Prudential is a fully owned subsidiary of Prudential
Financial Inc. which is a US-based financial service major.
22. Star Union Dai-ichi Life Insurance Company Limited
Star Union Dai-ichi is a joint venture between Bank of India, Union Bank of India and the Dai-ichi Mutual Life Insurance Company. Ltd. (SUD Life Insurance) which is a Joint Venture of Union Bank of India, Bank of India (two leading Public Sector Banks in India) & Dai-ichi Life Holding Inc., Japan (a leading Japanese Life Insurer in the Life Insurance market). The Company has an authorized capital of Rs. 250.00 Crores.
23. IndiaFirst Life Insurance Company Limited
IndiaFirst Life Insurance is a joint venture between Bank of Baroda, Andhra Bank and Legal & General, one of the oldest insurance players in UK. IndiaFirst Life Insurance is one of India’s youngest life insurance companies. Headquartered in Mumbai, we are present in over 1000 cities across India. Our vast experience in banking, wealth and financial management has given us an in-depth understanding of customer needs.
24. Bajaj Allianz Life Insurance Company Limited
It is a union between Allianz SE and Bajaj Finserv. Allianz SE is one of the largest Insurance Company. Bajaj Allianz Life Insurance is a joint venture between Bajaj Finserv Limited owned by the Bajaj Group of India and Allianz SE, a European financial services company. Being one of the private insurance companies in India, it offers insurance products for financial planning and security
25. Reliance Nippon Life Insurance Company
Reliance Nippon Life Insurance Company, founded in the year 2001 is one of the leading insurance companies in India catering to various segments of people. Reliance has more than 10 million policyholders. The company has made insurance accessible for many through its strong distribution network of 727 branches. Reliance Life has a product for every possible need of the individual.