Life is uncertain and unpredictable. One can only have proactive measures to deal with unpleasant situations. Therefore, the concept of “insurance” was introduced with the motive of mitigating risk and providing protection. Insurance is the primary way of managing life risk. There are various types of insurance available today to protect your loved ones and the things you love. In life insurance, the insurance compensates the insured’s family with a certain amount of money in the event of the insured’s death. You are spoiled for choice when it comes to choosing the right insurance plan as there are various insurance players in the market offering a lot of unique plans.
There are 24 life insurance companies in India that have been approved and recognized by IRDAI (Insurance Regulatory and Development Authority in India), which is the regulatory body for the insurance and reinsurance industry.
The Importance of Insurance
- Insurance is an effective risk management tool: Insurance covers uncertainties like the risk of death, risk of being hit, disease, and many more. Insurance is about effectively managing these risks. Every insurance policy provides coverage against an insured risk.
- Insurance protects you and your family for the future: The sudden demise of a family breadwinner can have the worst effects on a family’s financial stability. With insurance, your family can achieve financial stability even when you are not around. Their future financial goals will also remain intact.
- Insurance provides peace of mind: As the insurance effectively manages the risks, you can just pay the insurance regularly and stay stress-free. Peace of mind is what you get with insurance.
- Insurance supports savings: There are various products offered by life insurance companies that not only provide life cover but also provide wealth creation provisions to achieve future goals. The demand for regular investment in these products encourages savings. For example, subsidy plans, cash back plans, unit-linked investment plans, etc.
- Insurance provides you with financial security and a safety net: If something unforeseen happens to the breadwinner, the family’s financial situation can come to a standstill. Insurance benefits can become a source of family income and stabilize finances. With insurance, your family is financially secure even when you are not around.
Top Insurance in India
- HDFC Life Insurance Company Ltd: Founded in 2000, HDFC Life is a leading provider of term life insurance solutions in India, offering a range of individual and group insurance solutions to meet various customer needs such as protection, pension, savings, investment, annuity, and health. The company had 38 individual and 11 group products in its portfolio along with 8 optional rider benefits that catered to diverse customer needs. It is 3rd in the list of top insurance companies in India by revenue.
- Tata AIA Life Insurance Company: Tata AIA Life Insurance Company is a joint venture between Tata Sons Private Limited, one of the largest business groups, and AIA Group Limited, Asia’s largest insurance group. Tata AIA Life Insurance Company’s assets under management in 2021 are INR 46,281 crore. Tata AIA Life is one of the trusted insurance brands in India and offers a range of insurance solutions from protection to wealth creation. Policies provide simple solutions for unique insurance needs along with excellent customer service.
- ICICI Prudential Life Insurance Company Limited: ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is backed by ICICI Bank Limited and Prudential Corporation Holdings Limited. ICICI Prudential Life started its operations in fiscal 2001 and has consistently been among the leading players in the Indian life insurance sector. In fiscal 2015, ICICI Prudential Life became the first private life insurer to acquire Rs 1 trillion in assets under management. ICICI Prudential Life is also the first insurance company in India to be listed on NSE and BSE. It is the 2nd largest insurance company in India by revenue.
- Life Insurance Corporation of India: Life Insurance Corporation of India popularly known as LIC is the largest life insurance company in India owned by the Government of India. LIC, one of the top 10 insurance companies in India, was established in 1956. LIC makes insurance available to every person in any corner of the country with 2048 branches, 113 divisional offices, 8 zonal offices, and 1408 satellite offices. Currently, LIC’s total assets under management are INR 3,111,847 million (US$ 450 billion). LIC is a dominant insurance player and has a huge customer base of more than 29 million policyholders. LIC is a trusted insurance brand that offers great convenience to its customers through superior customer service on a digital platform as well as through branches and various other tie-ups. LIC offers a range of life insurance products that can cater to the unique needs of different customer segments.
- SBI Life Insurance Company Ltd: Established in October 2000, SBI Life Insurance Company (SBI Life) has been registered with the Insurance Regulatory and Development Authority of India (IRDAI) since March 2001 and operates in the life insurance industry. SBI Life is listed on the Bombay Stock Exchange (“BSE”) and the National Stock Exchange (“NSE”). It is the largest in the list of top insurance companies in India by revenue. The company has a wide network of 908 branches spread across the country with 14,961 employees. SBI Life also has tie-ups with 76 corporate agents, 17 Banca partners, and 99 brokers, along with 184,452 trained underwriters.
Insurance is a necessary expense that one has to incur in order to secure the future of one’s family. Even financial advisors advise you to avail of insurance before you start financial planning. Insurance is an important necessity for a variety of reasons.
– Amrin Ahmed