By Anil Baswal
When it comes to providing your family with a secure financial future, term insurance remains one of the most cost-effective options. However, selecting the best plan involves much more than low premiums and high coverage. A key figure each policyholder needs to consider is the claim settlement ratio (CSR), an indicator of the insurer's transparency and credibility. A CSR of over 95% indicates that the insurer has paid out a significant percentage of claims, giving policyholders confidence that their loved ones will be provided with prompt financial compensation in the event of their demise.
This blog delivers a handpicked list of the best term insurance policies in India with a claim settlement ratio of 95% or higher, from the most recent IRDAI (Insurance Regulatory and Development Authority of India) data. Beyond statistics, we discuss why these policies are special and worth looking at.
Understanding the Importance of Claim Settlement Ratio
The claim settlement ratio refers to the proportion of claims that an insurance company pays out of the total claims received in a financial year. For instance, if an insurer received 1,000 claims and paid out 970 of them, its CSR will be 97%.
Why is this so crucial? Because a term insurance policy is a long-term obligation, usually spanning decades. When your family comes to claim the benefits when the time is due, the last thing you would want them to endure is rejection or delays. So, a high CSR is an assurance that the insurance company is willing to settle claims with responsibility and customer care.
Best Term Insurance Policies in India (2024-2025) with 95%+ Claim Settlement Ratio
Here are the crème de la crème of term insurance policies in India, according to their CSR and customer-friendly aspects.
1. LIC Tech Term Plan – Life Insurance Corporation of India
Claim Settlement Ratio (FY 2023-24): 98.52%
Why it stands out: LIC, being a public sector giant, commands unmatched trust. Its Tech Term Plan is a non-linked, non-participating pure risk premium plan available online at competitive rates.
Unique Benefits:
Special premium rates for non-smokers and women
Two benefit options: Level Sum Assured and Increasing Sum Assured
Flexible premium payment options (Regular, Single, Limited)
If you’re looking for long-term assurance and institutional reliability, LIC’s term plan is a strong contender.
2. HDFC Life Click 2 Protect Super
Claim Settlement Ratio: 99.68%
Why it stands out: This policy is an adaptable and tailor-made product to suit changing financial needs.
Key Highlights:
Ability to cover accidental death and terminal illness
Life Stage Protection enables you to enhance cover at key stages in life
Income and Return of Premium options available
This plan is best suited for salaried individuals and young parents who wish to purchase term insurance that adjusts as their lives change.
3. ICICI Prudential iProtect Smart
Claim Settlement Ratio: 98.60%
Why it excels: A very popular-selling online term plan, iProtect Smart is famous for its extensive protection alternatives, including:
Key Features:
Protects 34 serious diseases such as cancer, heart disease, etc.
Death benefit options are available either in the form of a lump sum or a monthly income
Premium waiver on permanent disability
A high pick for those looking for complete protection beyond mere life cover.
4. Max Life Smart Secure Plus Plan
Claim Settlement Ratio: 99.51%
Why it stands out: Max Life has consistently had one of the top CSRs among insurers, supported by prompt customer service and robust claim support.
Advantages:
Terminal illness benefits are available at no additional cost
Premium back in case of survival till maturity
Option to take cover up to age 85 or whole life
With a strong claim history and dense plan features, the policy is attractive to customers who look for long-term value and security.
5. Tata AIA Life Insurance Sampoorna Raksha Supreme
Claim Settlement Ratio: 99.01%
Why it excels: Supported by the reputation of Tata, this plan unites trust and adaptability.
Highlights:
Life covers up to 100 years
Riders such as CritiCare Plus and Accidental Death optional
Lower premiums on healthy lifestyles
Best for customers who value brand credibility, very high CSR, and product foresight.
6. SBI Life eShield Next
Claim Settlement Ratio: 96.76%
Why it stands out: Sponsored by SBI, India's largest public sector bank, eShield Next is a digital-first term cover providing good protection at affordable costs.
Salient Features:
Excellent choice for conservative investors looking for stability and ease of digital purchase.
7. Bajaj Allianz Life Smart Protect Goal
Claim Settlement Ratio: 98.48%
What makes it special: This plan allows flexibility in benefits and add-ons, with a user-friendly interface.
Essential Benefits:
Bajaj Allianz balances innovation and customer-centricity in this product, making it a great choice for comprehensive family planning.
Fresh Perspectives: What to Look for Beyond CSR
While a 95%+ claim settlement ratio is a good beginning point, the following are some new perspectives to look at before purchasing term insurance:
Ease of Claim Process: Search for insurers that offer online claim intimation and designate claim settlement officers.
Turnaround Time: Faster processing time is as crucial as claim approval. Some insurers pay claims within 24-48 hours.
Optional Riders: Select policies with riders like critical illness, accidental death, and income benefit which can be added.
Premium Payment Flexibility: Select a policy that offers monthly, annual, or pay-limited terms based on your cash flow.
Coverage to Maturity: Certain policies provide coverage up to 99-100 years, providing security and peace of mind throughout life.
Why You Should Buy Term Insurance Now
If you're in your 30s or 20s, it's time to invest in term insurance now. Why? Because your premium is determined by your present age and health status. Postponing this decision means paying more premiums and higher chances of rejection on health grounds later in life.
Furthermore, with inflation going up, having your family covered by a decent amount assured (such as ₹1 crore and above) in the event of a mishap becomes imperative. Selecting plans that come with increasing sum assured and income benefit choices further ensures their financial requirements.
Conclusion:
In a market flooded with insurance options, choosing the best term plan requires balancing reliability, affordability, and future readiness. The claim settlement ratio serves as a critical trust signal that shouldn’t be ignored. Fortunately, several insurers in India consistently maintain CSRs above 95%, ensuring that your loved ones will be protected even in your absence.
So don't delay, buy term insurance that suits your financial aspirations, risk tolerance, and individual situation. It's not just a financial product; it's your legacy of care, protection, and responsibility. [NG-FA]
