Life cover
Life Insurance in India
Every IRDAI-licensed life insurer + Postal Life Insurance — 24 carriers, ₹76.2 lakh crore in combined AUM. Claim Settlement Ratios from IRDAI Annual Report FY 2024-25. Updated 22 May 2026.
Claim Settlement Ratio — all 24 insurers (FY 2024-25)
Sourced from IRDAI Annual Report (published December 2025). Sorted by CSR-by-number. CSR by amount matters more for high-cover policies — insurers often pay small claims fast but contest large ones.
| Insurer | Parent | CSR (#) | CSR (₹) | AUM |
|---|---|---|---|---|
| Max Life Smart Secure Plus | Max Financial + Axis Bank | 99.65% | 99.34% | ₹1.80 L cr |
| HDFC Life Bank-led Click 2 Protect Super | HDFC Group | 99.50% | 99.10% | ₹3.50 L cr |
| Postal Life (PLI) Govt Suraksha | Department of Posts, Govt of India | 99.50% | 99.20% | ₹2.20 L cr |
| Bajaj Allianz Life eTouch II | Bajaj Group + Allianz SE | 99.29% | 95.10% | ₹1.20 L cr |
| Canara HSBC Life Bank-led iSelect Smart360 Term | Canara Bank + HSBC + Punjab Nat. Bank | 99.23% | 94.80% | ₹50.0K cr |
| Acko Life Acko Saral Jeevan Bima | Acko (insurtech startup) | 99.20% | 95.80% | ₹1.2K cr |
| ICICI Prudential Bank-led iProtect Smart | ICICI Bank + Prudential plc | 99.17% | 96.65% | ₹3.00 L cr |
| Tata AIA Life Sampoorna Raksha Supreme | Tata Sons + AIA Group | 99.13% | 96.62% | ₹1.00 L cr |
| Go Digit Life Digit Saral Jeevan | Go Digit International | 99.10% | 94.50% | ₹1.5K cr |
| Bandhan Life Bank-led iTerm Prime | Bandhan Bank + Bandhan AMC (ex-Aegon) | 99.06% | 92.30% | ₹8.5K cr |
| Aditya Birla Sun Life DigiShield Plan | Aditya Birla + Sun Life Financial | 99.05% | 95.50% | ₹85.0K cr |
| IndiaFirst Life Bank-led IndiaFirst Maha Jeevan | Bank of Baroda + Carmel Point | 98.86% | 92.30% | ₹35.0K cr |
| Kotak Mahindra Life Bank-led e-Term | Kotak Mahindra Group | 98.82% | 96.10% | ₹85.0K cr |
| Pramerica Life Pramerica Saral Jeevan | Prudential Financial USA + DHFL | 98.70% | 90.30% | ₹8.5K cr |
| Future Generali Big Income Multiplier | Future Group + Generali | 98.65% | 90.10% | ₹12.0K cr |
| Edelweiss Tokio Zindagi Plus | Edelweiss Financial + Tokio Marine | 98.60% | 91.40% | ₹10.0K cr |
| PNB MetLife Bank-led Mera Term Plan Plus | PNB + MetLife Inc | 98.50% | 91.40% | ₹55.0K cr |
| Aviva India i-Term Smart | Aviva UK + Dabur Invest | 98.46% | 89.20% | ₹13.0K cr |
| SBI Life Bank-led eShield Next | State Bank of India | 98.45% | 95.81% | ₹4.50 L cr |
| Ageas Federal Life Bank-led iTerm Prime Plus | Ageas SA + Federal Bank | 98.40% | 89.50% | ₹14.0K cr |
| Reliance Nippon Life Digi-Term | Reliance Capital + Nippon Life | 98.30% | 91.70% | ₹32.0K cr |
| Star Union Dai-ichi Bank-led Premier Protection Plan | BoI + Union Bank + Dai-ichi Life | 98.25% | 90.45% | ₹30.0K cr |
| Shriram Life Shri Life | Shriram Group | 97.90% | 88.50% | ₹9.5K cr |
| LIC of India Govt Tech Term | Government of India | 96.91% | 98.69% | ₹54.50 L cr |
★ Postal Life Insurance is run by the Department of Posts (not IRDAI-regulated). CSR estimated from internal DoP disclosures. AUM is the corpus of the PLI & RPLI funds.
Top 10 by AUM (March 2025)
LIC dominates with ~62% of all life insurance AUM in India. Private sector grew 18% YoY in FY 2024-25.
LIC of India
Government of India
SBI Life
State Bank of India
HDFC Life
HDFC Group
ICICI Prudential
ICICI Bank + Prudential plc
Postal Life (PLI)
Department of Posts, Govt of India
Max Life
Max Financial + Axis Bank
Bajaj Allianz Life
Bajaj Group + Allianz SE
Tata AIA Life
Tata Sons + AIA Group
Kotak Mahindra Life
Kotak Mahindra Group
5 plan families — what each does
1. Term Insurance
Best ROIPure life cover. Pay ~₹10K-₹25K/year, get ₹1-2 Cr death benefit if you die during the term. No maturity payout if you survive. Cheapest cover per ₹ of risk transferred. Ideal for sole earner.
Top picks 2026: Bajaj eTouch, Max Smart Secure Plus, HDFC Click 2 Protect, ICICI iProtect, Tata AIA Sampoorna Raksha
Compare premium across 8 insurers2. Endowment Plans
Insurance + guaranteed savings. SA + bonus paid at maturity OR full SA on death during term. Typical IRR 4-6% post-cost — much lower than mutual funds but with capital protection. Common in LIC, PLI, bank-led plans.
Top picks: LIC New Jeevan Anand, HDFC Sanchay Plus, ICICI Guaranteed Income For Tomorrow, PLI Santosh, Max Smart Wealth
3. ULIPs (Unit-Linked)
Insurance + market-linked investment in equity/debt funds. 1.35% IRDAI-capped charges (post-2010). Returns track underlying funds. 5-year lock-in. Best after charges have stabilised (Year 5+).
Top picks: HDFC Click 2 Wealth, ICICI Signature, Tata AIA Fortune Pro, Max Online Savings Plan
ULIP returns calculator4. Whole Life / Money-Back
Whole Life: premium till age 55/60, cover till age 99/100, payout on death or survival. Money-back: periodic survival payouts at fixed intervals (yr 5/10/15) + bonus. Suits long-horizon savers who want disciplined lump-sum return.
Top picks: LIC Jeevan Umang, PLI Suraksha, PLI Sumangal, HDFC Sanchay Par Advantage, Bajaj Allianz Smart Wealth Goal
5. Pension / Annuity
Deferred annuity (build corpus during work years) or immediate annuity (lump sum → monthly pension). Pre-PFRDA rates currently 5.5-7% — usually worse than SCSS + SWP combo at 8%+.
Top picks: LIC Jeevan Akshay VII, HDFC Sanchay Pension, ICICI Pru Easy Retirement, Max Forever Young Pension
NPS calculator (better alternative)6. Postal Life Insurance (PLI / RPLI)
Government-operated. Bonus rates ₹47–₹76 per ₹1,000 SA — highest in the industry. Eligibility was originally for govt employees, now extended to professionals, listed company employees and NRIs. Maximum SA ₹50L (PLI) / ₹10L (RPLI).
Plans: Suraksha (WL), Santosh (Endow), Suvidha (Conv WL), Sumangal (Money-back), Yugal Suraksha (Joint), Bal Jeevan Bima + 6 rural Gram variants
PLI calculator — all 14 plansBank-led life insurers — bancassurance partnerships
Indian banks distribute insurance via subsidiaries or joint ventures (regulated under IRDAI bancassurance rules). Each bank typically has one insurance arm — convenient via netbanking but always cross-shop premium with non-bank insurers first.
| Bank / Distributor | Insurance Arm | Foreign Partner | CSR (#) | Flagship product |
|---|---|---|---|---|
| State Bank of India | SBI Life | BNP Paribas Cardif (legacy) | 98.45% | eShield Next (term) |
| HDFC Bank | HDFC Life | 100% HDFC | 99.50% | Click 2 Protect Super |
| ICICI Bank | ICICI Prudential | Prudential plc, UK (22%) | 99.17% | iProtect Smart |
| Axis Bank | Max Life (bancassurance + 20% stake) | Mitsui Sumitomo (Japan, 20%) | 99.65% | Smart Secure Plus |
| Punjab National Bank | PNB MetLife | MetLife Inc, USA (26%) | 98.50% | Mera Term Plan Plus |
| Bank of Baroda | IndiaFirst Life | Carmel Point Investments | 98.86% | Maha Jeevan |
| Canara Bank + HSBC + PNB | Canara HSBC Life | HSBC Insurance Asia | 99.23% | iSelect Smart360 Term |
| Bank of India + Union Bank | Star Union Dai-ichi | Dai-ichi Life (Japan) | 98.25% | Premier Protection Plan |
| Kotak Mahindra Bank | Kotak Mahindra Life | 100% Kotak | 98.82% | e-Term |
| Federal Bank | Ageas Federal Life | Ageas SA (Belgium) | 98.40% | iTerm Prime Plus |
| Bandhan Bank | Bandhan Life (ex-Aegon) | Bandhan AMC | 99.06% | iTerm Prime |
| India Post (Government) | Postal Life Insurance (PLI) | Sovereign — no foreign partner | 99.50% | Santosh, Suraksha, Sumangal |
Which life insurance should you pick?
If you're salaried + sole earner (age 25-50)
Buy pure term insurance for 15-20× annual income, cover till age 60. Compare across 8 major insurers. Pick the one with CSR ≥ 99% by amount + cheapest premium. Skip endowment/ULIP — invest the saved premium in mutual funds for 12% returns.
If you're a govt employee / PSU / professional
Check PLI Santosh first — bonus ₹52 per ₹1,000 SA p.a., premium 20-40% lower than LIC equivalent. Backed by Government of India. Use our PLI calculator to compare maturity vs private endowment.
If you want forced-savings discipline (guaranteed returns)
Endowment plans give 4-6% IRR with capital + bonus guarantee. Best alternatives by carrier: LIC New Jeevan Anand, HDFC Sanchay Plus, ICICI Guaranteed Income For Tomorrow, PLI Santosh. Pure savings without insurance: PPF (7.1% tax-free) or SCSS (8.20% for seniors) beat all endowments.
If you're equity-comfortable + want bundled cover
ULIPs work after the 5-year lock-in when charges drop. Pick low-charge ULIPs (HDFC Click 2 Wealth, ICICI Signature, Tata AIA Fortune Pro). Better still — buy term separately + invest in direct mutual funds. Same net result with full liquidity.
If you're a senior (60+) looking for income
Annuity plans are widely available but currently underwhelming (5.5-7% rates). Better: SCSS at 8.20% + POMIS at 7.40% + senior FD at 7.50% combination. See Post Office Schemes guide.
Tax benefits (FY 2026-27)
- • Premium: deductible under Section 80C (up to ₹1.5L, old regime only)
- • Death claim: tax-free under Section 10(10D) in both regimes
- • Maturity: tax-free under Section 10(10D) if annual premium ≤ 10% of SA (post-2012 policies); else taxable as income
- • ULIPs > ₹2.5L annual premium (post-Budget 2021 policies): maturity taxed as capital gains, like equity MF
- • Critical illness / annuity payouts: tax treatment varies — check policy document
Source: IRDAI Annual Report FY 2024-25 (published Dec 2025), insurer Q3 FY25-26 investor decks, public premium rate cards (May 2026). Brand colours are owned by respective insurers and used here for identification only. Bonus / interest / claim figures change at each declaration cycle.