Life is full of uncertainties, and securing your family’s financial future is one of the most important things you can do. Term insurance is a simple and effective way to provide financial protection to your loved ones in case of an unfortunate event.
One of the key factors to consider while choosing a term plan is the Claim Settlement Ratio (CSR), which shows how efficiently an insurance company settles claims. In this guide, we will explore the best term insurance plans in India with high CSR to help you make the right choice.
What is Claim Settlement Ratio (CSR)?
Claim Settlement Ratio (CSR) is the percentage of claims settled by an insurance company compared to the total claims received in a financial year. A high CSR means the company has a strong record of paying claims, making it an important factor when selecting a term plan.
How is CSR Calculated?
CSR is calculated using the following formula:
Claim Settlement Ratio = (Total Claims Paid / Total Claims Received) × 100
Why is CSR Important?
- Trustworthy Insurer – A high CSR shows that the company has a good track record of settling claims.
- Financial Security – Ensures that your family receives the policy benefits without complications.
- Customer Confidence – A high CSR reflects the company’s commitment to customers.
Top Term Insurance Companies in India Based on Claim Settlement Ratio
According to the latest IRDAI (Insurance Regulatory and Development Authority of India) report, the following insurance companies have the highest Claim Settlement Ratios:
1. Max Life Insurance
- CSR: 99.51%
- Why Choose? Reliable service with flexible plans.
2. HDFC Life Insurance
- CSR: 99.39%
- Why Choose? Multiple term plan options with add-on benefits.
3. Aegon Life Insurance
- CSR: 99.37%
- Why Choose? Affordable premiums and good claim settlement history.
4. Edelweiss Tokio Life Insurance
- CSR: 99.20%
- Why Choose? Variety of plan customization options.
5. Bharti AXA Life Insurance
- CSR: 99.10%
- Why Choose? Simple and flexible term insurance plans.
6. PNB MetLife India Insurance
- CSR: 99.06%
- Why Choose? Multiple payout options and riders.
7. Bajaj Allianz Life Insurance
- CSR: 99.04%
- Why Choose? Comprehensive coverage at competitive premiums.
8. Tata AIA Life Insurance
- CSR: 99.01%
- Why Choose? Trusted brand with good customer support.
9. Canara HSBC Life Insurance
- CSR: 99.01%
- Why Choose? Offers flexible policy terms and premium payment options.
10. Pramerica Life Insurance
- CSR: 98.80%
- Why Choose? Provides transparent and straightforward policies.
Best Term Insurance Plans with High Claim Settlement Ratios
1. Max Life Smart Secure Plus Plan
Features:
- Flexible payout options – lump sum, monthly income, or a combination.
- Additional cover for critical illnesses.
- Return of premium option available.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-67 years
- Sum Assured: ₹20 lakhs onwards
2. HDFC Life Click 2 Protect Life
Features:
- Flexible coverage options.
- Discounts for non-smokers and female policyholders.
- Life stage benefits to increase cover when needed.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 5-40 years
3. Aegon Life iTerm Prime Plan
Features:
- Budget-friendly premiums.
- Advance payout in case of terminal illness.
- Multiple payout choices.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
4. Edelweiss Tokio Zindagi Protect Plan
Features:
- “Better Half” benefit provides cover for the spouse.
- Policyholders can increase coverage as life progresses.
- Waiver of premium in case of critical illness or disability.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
5. Bharti AXA Life Flexi Term Plan
Features:
- Different payout options – lump sum, staggered income, or increasing income.
- Additional cover for accidental death.
- Critical illness coverage option.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
6. PNB MetLife Mera Term Plan Plus
Features:
- Coverage up to 99 years.
- Option to get premiums refunded if no claim is made.
- Additional riders for extra protection.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
7. Bajaj Allianz Life Smart Protect Goal
Features:
- Additional benefit for child education.
- Critical illness and disability cover.
- Tax benefits under Section 80C and 10(10D).
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
8. Tata AIA Sampoorna Raksha Supreme
Features:
- Coverage up to 100 years.
- Various premium payment options.
- Extra cover for critical illnesses.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
9. Canara HSBC OBC iSelect Smart360 Term Plan
Features:
- Lock-in lower premiums by purchasing at a young age.
- Option to get the premium amount refunded.
- Different payout options for beneficiaries.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
10. Pramerica Life U-Protect Plan
Features:
- Affordable plans with high coverage.
- Whole life coverage up to 99 years.
- Extra coverage for illnesses and disability.
Eligibility:
- Entry Age: 18-65 years
- Policy Term: 10-40 years
How to Choose the Best Term Insurance Plan?
1. Affordable Premiums
Pick a plan that provides good coverage at a reasonable premium.
2. Right Coverage Amount
It is recommended to choose a sum assured of at least 10-15 times your annual income.
3. Policy Duration
Ensure that your plan covers you until your retirement or major financial responsibilities are fulfilled.
4. Additional Benefits (Riders)
Consider adding extra benefits such as:
- Accidental Death Benefit
- Critical Illness Cover
- Premium Waiver
5. Payout Choices
- Lump Sum – Full amount paid at once.
- Monthly Income – Beneficiaries receive regular payouts.
- Combination – A mix of both options.
Conclusion
Choosing the right term insurance plan ensures long-term financial security for your family. Max Life, HDFC Life, Tata AIA, and Bajaj Allianz are among the top options, offering high Claim Settlement Ratios (CSRs) and flexible coverage.
Before deciding on a plan, compare CSR, premium costs, coverage, and extra benefits to find the one that best meets your needs. Invest in a term insurance plan today to secure a better tomorrow for your loved ones!
