Group health insurance policies India

Health insurance has become a necessity in today’s age and time. Illnesses are on the rise as lifestyle diseases and infections are increasing. Along with the rising incidence of illnesses, medical costs are also rising. In the face of these rising costs, affording quality healthcare has become difficult. Many individuals understand this fact and so a health insurance plan is quite popular. In fact, groups try and avail a group health insurance policy for their members so that the members can enjoy health insurance coverage at affordable rates.

What is group health insurance?

Group health insurance plans are those which provide coverage to a group of individuals who are a part of a recognised group. A single policy is issued in the name of the group and the policy is called the Master Policy. All the members of the group are then covered under the policy.

Features of group health insurance plans:

Group insurance scheme are categorised with the following unique features –

  1. The policy is available to those groups which are already in existence for a purpose. If a group is created only for the purpose of buying a group mediclaim policy, such a group would not be covered.
  2. The group should have a minimum number of members to be eligible for a group health insurance plan. This requirement of minimum members varies across different plans. Usually, most group health insurance plans require a minimum membership of 20 or 25 individuals.
  3. The policy is issued for one year. If the group wants to enjoy continued coverage, the policy should be renewed every year.
  4. Health insurance companies provide coverage up to a limit. Very high coverage levels are not allowed. This is because of the fact that the company does not underwrite individual health risk of the covered members. The policy is issued based on the nature and composition of the group.
  5. The premium depends on a lot of factors. The primary factors include the size of the group, type of group, the average age of the covered members, the sum insured and additional coverage options if selected.
  6. Premiums can be paid by the group itself or by its members. Alternatively, the premium can also be paid partially by the group and partially by the members. The insurance company, however, collects a single premium from the group irrespective of who pays it.
  7. A claim by one member does not affect the coverage of other members.
  8. Cashless claims can be availed if the insured member avails treatments at a hospital which is tied up with the insurance company.

How does group health insurance plans work?

The working of a group health insurance policy is quite simple. Here are the steps showing how group mediclaim policies usually work –

  1. A group approaches an insurance company and proposes to buy its group health insurance policy
  2. The company accepts the proposal for insurance and underwrites the medical risk of the group
  3. The sum insured is agreed upon and the insurance company fixes the premium payable for the plan
  4. If the group is satisfied with the premium charged by the company, it can pay the premium and get the policy issued
  5. Once issued, the policy runs for one year
  6. During the year, if any member faces a claim, he informs the health insurance company.
  7. The company verifies the claim and settles it
  8. If the claimant’s sum insured is remaining after the claim, the coverage would continue up to the remaining sum insured
  9. Coverage for other members would not be affected. It would run till the term of the policy
  10. Once the coverage duration ends, the group can propose a renewal of the policy
  11. On renewal, the policy is again underwritten based on the claim experience in the last year
  12. If the claim experience is good, the company might offer a premium discount when the policy is renewed.

Which groups can buy group health insurance plans?

Eligible groups which can buy group insurance scheme include the following –

  • Employer-employee groups where the employer buys coverage for its employees
  • Trade unions where the union buys coverage for its labourers/members
  • Clubs where the club buys insurance for its members
  • Associations where the association buys insurance for its members
  • Banks where banks buy insurance for their account holders/customers

A group mediclaim policy can also be bought by the Government of India for covering a targeted population for their welfare like Chief Minister’s Group Mediclaim Insurance Policy, Group Insurance Plan for all Central/State Government Employees, etc.

Coverage and exclusions under group health insurance plans:

The exact coverage features of group health insurance plans depend on the plan in question. Different plans have different coverage structure. However, the exclusions are more or less the same across all plans.

Here is a list of the most common inclusions and exclusions under group health insurance plans:

List of most common Inclusions under group health insurance plans:

  1. Hospitalisation expenses which would include the following –
    1. Room rent
    2. ICU room charges
    3. Nurse’s fee
    4. Doctor’s fee
    5. Anaesthetist’s fee
    6. Surgeon’s fee
    7. Operation costs
    8. Charges for blood, medicine, oxygen, etc.
  2. Cost of ambulance
  3. Daycare procedures
  4. Organ donor costs
  5. Expenses incurred before and after hospitalisation
  6. Domiciliary treatments, etc.

List of most common exclusions under group health insurance plans:

  1. Pre-existing illnesses are covered after a waiting period. This period can be between 1 to 4 years
  2. Cosmetic treatments
  3. Maternity costs, unless otherwise covered
  4. HIV/AIDS infection or any other STD
  5. Mental disorders
  6. Congenital defects or illnesses, etc.

Individual health insurance v/s group health insurance plans:

Here are the main points of difference between individual and group insurance scheme –

Point of difference Individual health insurance Group health insurance 
Individuals covered The proposer or the proposer, spouse, dependent children and dependent parents Members of the group. Coverage can also be taken for dependents by paying an additional premium
Sum insured  Any level of sum insured can be chosen based on affordability and coverage requirements There is a limit up to which the sum insured is available
Premiums  Premiums are higher than group mediclaim policies Premiums are quite low and easily affordable
Coverage benefits Individual plans come with a host of coverage features which can also be customised to suit one’s coverage requirements The coverage benefits are limited
Coverage tenure These plans are renewable lifelong without any maximum cover ceasing age Group health plans allow coverage only till the member is a part of the group. There might also be a maximum coverage age up to which coverage would be available
Pre-policy health check-ups Might be required depending on the age of the insured and sum insured Not required

Advantages and disadvantages of group health insurance plans:

Group insurance scheme has both advantages as well as disadvantages. Let’s understand the pros and cons of the policy –

List of most common advantages of group health insurance plans:

  1. The policy allows affordable health insurance coverage to individuals
  2. If the group pays the premium, individuals can enjoy free coverage
  3. The policy helps groups create a sense of belonging and affiliation in the minds of its members
  4. Additional coverage benefits can be taken under the policy for a wider scope of coverage
  5. Dependents of the members can also be allowed coverage
  6. An organisation buying the policy for its employees and paying the premium can claim the premium paid to be a business expense. This would reduce the income from business and help in saving tax

List of most common disadvantages of group health insurance plans:

  1. There is a very limited scope of coverage under group health insurance plans
  2. The sum insured is limited which might prove insufficient for covering the high medical costs
  3. Coverage is available only till the member is affiliated with the group
  4. There is no lifelong coverage under the policy
  5. The coverage cannot be customised as per the coverage requirement of the member

Popular group health plans in the market:

Here are some of the popular group insurance schemes available in the market today –

Name of the policy Salient features
HDFC Ergo Group Medical Insurance
  • Domiciliary treatments and daycare treatments are covered
  • There are a range of optional coverage benefits which can be selected for enhancing the coverage
Star Classic Group Health Insurance
  • A daily allowance is paid as patient care for availing the services of an attendant
  • Hospital cash allowance benefit is available as an add-on
ICICI Lombard Group Health Insurance Policy 
  • Dental expenses, AYUSH treatments, critical illness cover, etc. can be availed as optional coverage benefits
  • Coverage up to 95 years of age is available
  • Lifetime renewals are allowed

A group health insurance policy is a good way to ensure health insurance coverage at affordable premiums. However, you should understand the different aspects of group health insurance plans before buying. Also, compare the available plans to ensure a plan which has the best coverage benefits at the lowest premium rates.

Know Everything About Whole Life Insurance

Who doesn’t like the security of being covered lifelong when the life insurance policy doesn’t have an expiry date? Whole life insurance policies promise such lifelong coverage and much more. Let’s understand how –

What are whole life insurance plans?

Whole life insurance plans are those plans which provide coverage until you reach 99 or 100 years of age. Thus, these plans essentially run for your entire lifespan if you die before reaching 100 or 99 years of age. 

Salient features of whole life insurance plans

Whole life insurance plans which are available in the market have some salient features which are as follows:

  1. These plans can come in different variants. These variants include the following –
    • Pure protection plans, also known as Term Insurance Plans wherein only a death benefit is paid whenever the insured dies before attaining 100 years of age
    • Endowment plans wherein coverage runs till 100 years. In case of death, a death benefit is paid if the insured survives till 100 years of age, a maturity benefit is also paid
    • Money-back plans wherein regular money back benefits are paid after the completion of the premium paying tenure. The benefits are paid till death or till the insured reaches 100 years of age, whichever is earlier.
    • Unit linked plans wherein coverage is allowed for up to 100 years. The death or maturity benefit depends on the market linked returns earned by the invested premium.
  2. Premiums are usually payable only up to a specified age. Whole life plans are, therefore, limited premium paying plans.
  3. Endowment and money back whole life plans might be issued as participating or non-participating plans. Participating plans are those which earn bonuses.
  4. There is no fixed tenure of the plan. The tenure depends on the entry age of the insured. It is calculated by deducting the entry age with 100 or 99 as per the coverage of the plan. So, if you are aged 30 years and the plan allows coverage till 100 years, the policy tenure would be 70 years.

Types of whole life insurance plans

Whole life insurance plans can come in different variants. These variants include the following –

  • Whole life term plans – whole life term plans are pure protection plans which have no definite coverage tenure. The plan runs till the insured attains 99 or 100 years of age (depending on the plan’s maximum coverage age). If the insured dies before attaining 99 or 100 years of age, the death benefit is paid. If, however, the insured survives the policy tenure and attains 99 or 100 years of age, no maturity benefit is paid under these plans.
  • Endowment whole life plans – These plans are savings oriented whole life plans which provide lifelong insurance protection as well as a savings corpus. The coverage under the plan runs until 99 or 100 years. In case of death before the insured reaches 99/100 years of age, a death benefit is paid. If, however, the insured survives till 99 or 100 years of age, a maturity benefit is also paid. Endowment whole life plans are usually offered as participating plans where bonus accrues during the policy tenure.
  • Money-back whole life plans – These plans are limited premium plans. Under the plan, money back benefits are paid after the completion of the premium paying tenure. Money-back benefits continue lifelong until the insured attains 99 or 100 years of age. A maturity benefit might also be paid at the maturity age. If, on the other hand, the insured dies before reaching 99 or 100 years of age, the money-back benefits stop and a death benefit is paid. Money-back whole life plans are usually offered as participating plans and they earn bonuses.
  • Unit linked whole life plans – These plans provide lifelong coverage for up to 99 or 100 years. Moreover, the premiums are invested in the market and so the plans promise attractive market-linked returns. The death or maturity benefit depends on the market linked returns earned by the invested premium. In case of death, the higher of the sum assured or the fund value is paid. If, however, insured survives till 99 or 100 years of age, the plan matures and the available fund value is paid.

Benefits of whole life insurance plans

Whole life insurance plans have some specific benefits which are as follows –

  1. The plans ensure lifelong coverage and therefore allow you to create financial security for your family in your absence
  2. Savings oriented whole life plans also create a corpus while at the same time providing insurance coverage 
  3. Since premiums are payable for a limited period, you don’t have to pay the premiums in your older age. However, coverage would continue even when you are old.
  4. The premiums paid are allowed as a deduction under Section 80C of the Income Tax Act up to INR 1.5 lakhs. Thus, premiums paid for whole life insurance plans lower your taxable income. The benefit received from whole life insurance plans is also tax-free benefits as they do not attract any tax under the provisions of Section 10 (10D) of the Income Tax Act.

Who should invest in whole life insurance plans?

Whole life insurance policies are suitable for every individual. You can choose these plans for protection needs and to create a financial corpus in your absence. While term plans offer coverage for a limited duration, whole life plans would ensure that your family would be taken care of whenever you die. 

Whole life plans are also suitable for individuals looking to create a corpus for their financial goals. You can choose endowment, money back or unit-linked whole life policies and create a savings corpus while enjoying lifelong coverage.

The plan can also be taken for child planning as you would be promised a benefit whenever you die. Your child’s needs would, therefore, be taken care of in your absence.

Best whole life insurance policies in India

There are a lot of insurance companies in the market and each company offers one or more whole life insurance policies. As such, choosing the best policy proves confusing for many. So, here is a list of the top five whole life insurance plans which promise the best coverage features at very affordable premium rates – 

Name of the plan Type of whole life insurance Entry age  Sum assured 
Tata AIA Life Insurance Sampoorna Raksha Term insurance plan 18 to 70 years INR 50 lakhs onwards
ICICI Pru iProtect Smart Term insurance plan 18 to 65 years Depends on the premium paid, age and term
Aegon Life iTerm Insurance Plan Term insurance plan 18 to 65 years INR 25 lakhs onwards
HDFC Life Sampoorn Samridhi Plus Traditional endowment plan 30 days to 60 years INR 65,463 onwards
LIC’s Jeevan Umang Traditional money back plan 90 days to 55 years INR 2 lakhs onwards
SBI Life Shubh Nivesh  Traditional endowment plan 18 to 60 years INR 75,000 onwards

Overview of the best whole life insurance plans

Let’s check the features and benefits of the above-mentioned whole life insurance plans which make these plans the best – 

Tata AIA Life Insurance Sampoorna Raksha

This plan is a term insurance plan which allows coverage to 85 years of age. You have the option of converting the plan to a whole life plan and avail coverage till 100 years of age. The features and benefits of the plan include the following –

  • The death benefit can be received in four options. The options are as follows –
    • Sum assured is paid in one lump sum
    • Sum assured is paid partly in a lump sum and partly in monthly incomes for the next 10 years
    • An increased sum assured is paid in one lump sum 
    • An increased sum assured is paid partly in a lump sum and partly in monthly incomes for the next 10 years
  • Premiums can be paid throughout the policy tenure or for a limited period
  • There are optional riders too which can be selected for enhancing the coverage 

ICICI Pru iProtect Smart

This is a term insurance plan where whole life cover can be selected. If the whole life coverage option is selected, coverage is provided until 99 years of age. The features of the plan are as follows –

  • There are four coverage benefits to choose from. These coverage options are as follows –
    • The life which covers death, terminal illness and waives premiums in case of disabilities
    • Life Plus which covers death, terminal illness, accidental death and waives premiums in case of disabilities
    • Life & Health which covers death, 34 critical illnesses, terminal illness and waives premiums in case of disabilities
    • All in One where all the coverage benefits are included. The benefits are death, terminal illness, waiver of premiums in case of disabilities, 34 critical illnesses and accidental death.
  • The death benefit can be received in a lump sum, in monthly installments or in a combination of both. There is also an option of increasing the monthly instalments.
  • The sum assured can be increased on marriage or childbirth through life stage protection feature available under the plan

Aegon Life iTerm Insurance Plan

This is also a term insurance plan with an option to avail lifelong coverage until you reach 100 years of age. The other features and benefits of the plan are as follows –

  • Premiums can be paid only up to 60 years of age while the policy runs lifelong
  • The death benefit can be either taken in a lump sum or in regular monthly incomes or in a combination of lump sum and monthly incomes
  • There is an inbuilt rider of terminal illness benefit in this plan which pays the sum assured if you suffer from a terminal illness
  • You can increase the sum assured if you marry or have a child 

HDFC Life Sampoorn Samridhi Plus

Sampoorn Samridhi is a traditional savings oriented insurance plan wherein you can choose to avail whole life cover till you reach 100 years of age. The plan’s features include the following –

  • Guaranteed additions are added to the sum assured in the first five policy years
  • Premiums are payable for a limited period
  • Bonuses are added regularly which enhance the corpus accumulated under the plan
  • There is an inbuilt accidental death benefit option which pays a benefit in case of accidental death

LIC’s Jeevan Umang

LIC’s Jeevan Umang is a participating whole life plan which earns bonuses. The salient features of the plan are as follows –

  • Money-back benefits are offered @8% of the sum assured after the premium payment term is completed
  • Simple reversionary bonuses are paid throughout the policy term which enhances the corpus
  • The full sum assured is paid on maturity of the plan even after the payment of money back benefits
  • There are four additional optional riders to add to the plan for an enhanced coverage 

SBI Life Shubh Nivesh 

This is a traditional endowment plan which offers you to choose to avail whole life coverage. The plan’s features are as follows –

  • Deferred maturity benefit option is available under the plan. Under this option, you can choose to receive the sum assured in installments after 5, 10, 15 or 20 years.
  • On survival till 100 years of age, the sum assured is paid again even if the deferred maturity  option was selected and you received the sum assured in installments before maturity
  • Single premiums are also allowed under the plan

Riders available in whole life insurance plans

Riders are optional coverage benefits which are available with the basic whole life insurance plan. If riders are selected and the covered contingency occurs, the rider pays an additional benefit. There is a range of riders which are offered by life insurance companies. Some of the popular riders which are available with whole life insurance plans include the following –

1. Accidental death benefit rider

This rider covers accidental deaths during the policy tenure. If you die in an accident during the coverage period, an additional sum assured is paid along with the death benefit of the base policy.

2. Premium waiver rider

The premium waiver rider covers disabilities. If you suffer permanent disablement due to an accident, the rider would waive off the premiums payable in your whole life insurance plan. The policy would continue and the premiums would be paid by the insurance company on your behalf. Thereafter, in case of death or maturity, the promised death or maturity benefit would be paid.

3. Critical illness rider

This rider covers specified critical illnesses and major surgical procedures. If during the term of the plan, you are diagnosed with any of the covered illness or if you undergo any of the covered medical treatment, the rider pays a lump sum benefit. This lump sum benefit is the rider sum assured which helps you in meeting the medical costs associated with your critical illness.

4. Terminal illness rider

Terminal illness rider covers terminal illnesses. If during the term of the plan, you are diagnosed with a terminal illness, the rider pays the policy’s sum assured beforehand so that you can deal with the expenses of the illness.

These are some of the popular riders which are available with whole life insurance policies. Each rider requires an additional premium and you can choose as many riders as you like. However, the rider premium should not exceed 30% of the premium of your base policy. You can, therefore, choose the above-mentioned riders as long as the maximum premium criterion is fulfilled.

Whole life insurance plans offer unparalleled insurance protection for your entire lifetime. They even come in different variants and so they can be selected to fulfill all your financial requirements. If you are seeking comprehensive protection, you can choose whole life term plans which offer only death benefits. On the other hand, if you want to create savings, there are endowment and unit-linked plans too which allow lifelong coverage. So, choose the most suitable type of whole life coverage that you need and get yourself insured lifelong. 

Frequently Asked Questions

  1. How much coverage should I opt for?The coverage amount of your whole life policy should be optimal enough to provide sufficient financial means to your family in your absence. Opt for at least 10 or 12 times your annual income as the coverage under whole life term plans.
  1. Can I borrow money against whole life insurance plans?Savings oriented whole life insurance plans allow you the benefit of policy loans. You can, therefore, avail loans in your endowment and money-back policies. Whole life term plans and unit-linked plans, however, do not allow the facility of loans.
  1. Is whole life insurance a good investment for retirement?Under many savings oriented whole life insurance plans, you start getting regular income after you complete the premium paying term. So, if you pay premiums until retirement, you would get regular incomes under such whole life plans. Moreover, the incomes would be promised lifelong. As such, whole life plans are a good investment choice for your retirement.
  1. Do whole life plans allow tax benefits?Yes, premiums paid for whole life insurance plans are allowed as a deduction up to INR 1.5 lakhs under Section 80C. Moreover, any money back benefits, death benefit or maturity benefit that you receive from the plan would also be completely tax-free in your hands.
  1. Can I buy whole life plans online?Yes, almost every insurance company allows you the facility of buying its policy online. You can, therefore, buy whole life plans online. When buying online, you can choose Turtlemint. Turtlemint is an online website which sells the best whole life insurance plans. Turtlemint is tied up with all the leading life insurance companies of India and offers their whole life plans through its portal. Through Turtlemint you can compare the available whole life insurance plans and then choose the best plan for yourself. The buying process is easy as you can buy online through some simple steps. In case you need any guidance you can get in touch with Turtlemint’s team of experts who would guide you to buy the best whole life plan matching your requirements.

PLI Status: All about checking the status and paying premiums of postal life insurance online

The establishment of Postal Life Insurance (PLI) goes all the way back to pre-independent India. PLI was founded in the year 1884 as a State Insurance scheme for the employees of the postal department. In the year 1888, the scheme was extended to cover employees of the telegraph department as well. However, today, PLI schemes are not only restricted for employees of the postal and telegraph departments. It can be bought by individuals working in public sector companies, Government organisations, banks and financial institutions, educational institutions, etc.

Postal Life Insurance offers a range of traditional insurance plans which promise a guaranteed benefit. The premiums under the plans are very low and affordable and the plans promise attractive bonus earnings. Some of the plans offered by PLI include the following –

Name of the plan Type of plan Salient features 
Suraksha Whole life plan
  • The plan runs till the insured attains 80 years of age
  • On maturity, the sum assured and bonus are paid
  • The loan can be availed after four policy years
Santosh Endowment plan
  • Loan is available after three completed policy years
  • The sum assured and accrued bonus is paid on maturity or death
Suvidha Convertible whole life plan
  • The policy is issued as a whole life policy which can be converted to endowment plan after the completion of 5 policy years
  • The policy can be surrendered after three completed years
Sumangal Money back plan
  • The plan can be bought for 15 or 20 years
  • 20% of the sum assured is paid as money back benefit at regular intervals
  • The death benefit is the full sum assured and bonus even if the money back benefits have been paid earlier
Yugal Suraksha Joint life insurance
  • This policy is available to cover a married couple on a joint life basis
  • In case of death of either of the spouse, the sum assured and accrued bonuses are paid to the surviving spouse
Bal Jeevan Bima Child plan
  • Children aged 5 years to 20 years can be covered under the scheme
  • Up to two children can be covered
  • Premiums are waived if the parent, who is the policyholder, dies during the policy tenure
  • Maturity benefit is paid at the end of the tenure irrespective of whether the policyholder is alive or dead

Given the wide range of insurance plans offered by Postal Life Insurance and their respective benefits, many individuals opt for one or more PLI plans. The plans can be bought from any of the nearest post offices. If you have applied for any plan and want to check the status of your application, the same can be done online. Here’s how you can check your postal life insurance online payment.

Checking PLI payment and postal life insurance online status

With the advancement of technology, everything is becoming digital. The postal department has also utilised the digital revolution by making PLI digitised. Now, you can check your postal life insurance online status without having to stand in long queues at the post office.

The steps of checking your postal life insurance online status or postal life insurance online payment are as follows:

  • If you have made a fresh applicationIf you have made a fresh application and want to check the status of your policy, here are the steps which you should follow –
    • Go to the PLI website which is http://www.postallifeinsurance.gov.in/ .
    • On the home page, under the Login section, you should choose ‘Policyholders’.
    • A new page would open wherein you would be required to log into your account. Since you have made a fresh proposal and want to track its status, you should select ‘Purchase a Policy’ which is an option at the upper left corner of the page.
    • Under this tab, you would get an option of ‘Proposal Track’.
    • Choose this option and a new page opens where you are required to enter your proposal number.
    • As you enter the proposal number correctly, you would be able to check the status of your application.
  • If you are an existing customerIf you are an existing customer, you can create your postal life insurance online account on the PLI website. After you create an account, you have to take the following steps to check the status of your policy –
    • Go to the official website of PLI which is http://www.postallifeinsurance.gov.in/
    • Look for the Login section and under that section choose ‘Policyholders’
    • You would be taken to a new tab wherein you would have to log into your PLI account by using your customer ID, password and Captcha code.
    • If you don’t have a customer ID, you can generate your ID. The option to generate your customer ID is available on the same page. When you click that, you would have to provide the information about your existing policy, viz., policy number, the sum assured, name of the insured, date of birth, etc. By providing the required details, you can generate your Customer ID.
    • If you have forgotten your password, the same can be retrieved through the ‘Forgot Password’ option. When you click the option a box would open wherein you would have to mention your registered mobile number, email address and customer ID. Enter the captcha code and the password will be sent to your mobile number and email.
    • If you have forgotten your customer ID you can click ‘Forgot Customer ID’. Then you would have to mention the policy number, the sum assured, name of the insured, date of birth, etc. and the customer ID would be sent to your registered mobile number and email ID.
    • Using your Customer ID and password you have to log into your account. Once in your account you can easily check the status of your policy.

Postal life insurance online payment

Besides checking your policy status, you can also pay your PLI payment online. To pay the premiums for your postal life insurance online, you have to follow the below-mentioned steps –

  • On the official website of PLI http://www.postallifeinsurance.gov.in/ you should log into your account.
  • To log in, you will need your Customer ID and password. There would be a Captcha code which should be entered correctly for a successful login
  • Once you log into your account, you can check your policy status and make premium postal life insurance online payment.
  • Postal life insurance online payment can be done through your debit or credit card, net banking facility and other postal life insurance online modes.

Other postal life insurance online services

As stated earlier, PLI has digitised its platform to serve its customers easily. So, if you have bought a PLI policy, besides checking your policy status and making postal life insurance online payments, you can also access the following services postal life insurance online –

  • Check your profile details
  • Check your policy details
  • Repay the loan which you have availed on your policy if any
  • Request for a change in your premium frequency for postal life insurance online payment
  • Request for availing a loan under your policy
  • Reviving a policy which has lapsed, etc.

The postal life insurance online platform has developed so that it becomes easier for policyholders to keep a track of their policy and service their policy as per their needs. So, if you have invested in a PLI policy, use the postal life insurance online platform and manage your policy easily.

However, if you wish to know more about the other life insurance policies available in India, you can visit https://www.turtlemint.com/life-insurance and check the same.

Personal Loan Protection Insurance Plans In India

Financial responsibilities and requirements might arise anytime and if you don’t have the required funds to meet your financial obligations, you might resort to loans. Personal loans are a very popular source of finance for many. They are unsecured and are offered without much fuss. You also get repayment tenure of up to five years over which you can repay the loan affordably. But what if an eventuality occurs making you unable to pay off your loan?

Death, disability, critical illness and unemployment are some common eventualities which might cause you to default on your loan. The loan burden would, then, fall on your family and create a financial crisis. Can you avert this crisis?

Yes, you can. There are personal loan insurance plans available in the market. These plans take care of your loans if you are unable to clear them due to unavoidable contingencies. In case of death, disability, illness or unemployment, the loan insurance plans pay the outstanding liability preventing the burden from falling on your family.

Salient features of loan insurance plans

Here are some important features of loan protection plans which make them unique –

  • The plans can cover death, disability, unemployment and, in many cases, critical illnesses too
  • The plan can be offered as an individual loan insurance plan or a group loan insurance plan
  • If there is any co-borrower for the personal loan, the co-borrower would also be covered under the plan
  • The coverage is offered in two variants – the level sum assured and decreasing sum assured. Under level sum assured option, the coverage amount remains the same throughout the policy tenure while under the decreasing cover option the coverage amount reduces every year. You can choose any coverage option that you like
  • Premiums for the plan can be paid in one lump sum through the single pay option or throughout the term of the loan. If you choose to pay premiums over the loan tenure, the amount of premium would be added to the EMIs and collected with the repayment amount.

Benefits of having a loan insurance plan

The main benefit of having a loan insurance plan to cover your personal loan is the fact that the policy prevents the loan burden from falling on your family’s shoulders. If your earning capacity is hindered due to death, disability, sickness or unemployment, the loan insurance policy would pay off the outstanding amount of loan and get rid of your liability. Moreover, since these policies also cover co-borrowers, the co-borrowers would also be secured of repayment of the loan even in your absence. The cover, therefore, proves to be beneficial.

Another advantage of buying a loan insurance plan is the tax benefits that you can get. The premiums paid for the plan are allowed as a deduction under Section 80C of the Income Tax Act up to INR 1.5 lakhs. Thus, you can also save your tax liability through the loan protection plan while at the same time insuring your debts.

Top #6 Things to keep in mind when buying loan protection plans

When you are buying a loan protection plan to cover your personal loan liability, here are some things which you should keep in mind –

  1. The plan is not mandatory in nature. Though the lender might insist on you buying a loan protection plan, the choice to buy the plan rests entirely on you. If you think you can repay the loan without any defaults, you might opt-out of buying the policy. However, having coverage is better for financial security.
  2. The exact coverage under loan protection plans varies from plan to plan. Some plans might cover only accidental deaths or disablements while others might also cover natural deaths and/or unemployment. So, when buying the loan protection plan, find out the eventualities which are covered by the plan. The more comprehensive the plan the better it would be.
  3. You should always compare different loan protection plans and then choose one. The lender might offer you a plan as per its choice but you have the freedom to compare other available plans and then buy one which has the best benefit structure at the lowest premium rate.
  4. The premiums of the policy depend on the term of the loan, the loan amount, your age and medical condition. If the loan amount is high, loan tenure is long, age is high or you have adverse medical conditions, the premium would be high.
  5. Always ensure that the premiums are affordable when you buy the policy. If the premiums are unaffordable your EMIs would increase and the loan cost would prove to be a burden.
  6. In case you foreclose the loan by paying the due amount before the stipulated tenure, the loan insurance coverage might also end. So, check the foreclosure terms in the coverage before buying.

A loan insurance plan is a good addition to your personal loan as it shoulders the burden of repaying the loan in case you cannot. So, buy the coverage and ensure that the loan is paid in all circumstances. You would be able to avoid late payment charges in case of defaults and your credit score would also not be hampered. The premiums are not very high and if you compare the plans before buying, you can even get the best plan at the lowest rate. So, secure your personal loan under a loan insurance plan and buy yourself peace of mind.

Do you know which ones are the Government Owned Insurance Companies in India?

Prior to the year 2000, the insurance segment in India was dominated by Government insurance companies. However, the Government formed the Malhotra Committee in the year 1993 to suggest reforms in the insurance sector. As per the recommendations of the committee, the Insurance Regulatory and Development Authority of India (IRDAI) was formed and the insurance segment was opened to private companies. Since the year 2000, both life and general insurance segment have seen different private companies tying up with foreign companies to sell insurance products. The market has, therefore, become competitive. However, there are still some insurance companies which are owned by the Government of India. Let’s see the list of such Government companies in different insurance segments –

List of Government Insurance Companies for Life Insurance in India:

  • The Life Insurance Corporation of India (LIC)

    The Life Insurance Corporation of India was formed in the year 1956 when the Government nationalised the business of life insurance. From 1956 to 2000 LIC enjoyed a monopoly position in the country selling life insurance policies. Even today LIC has the largest market share in the life insurance segment. The company offers all types of life insurance plans like term plans, endowment insurance, money back plans, pension plans, ULIPs, health plans, etc.

    The Life Insurance Corporation of India was formed in the year 1956 when the Government nationalised the business of life insurance. From 1956 to 2000 LIC enjoyed a monopoly position in the country selling life insurance policies. Even today LIC has the largest market share in the life insurance segment. The company offers all types of life insurance plans like term plans, endowment insurance, money back plans, pension plans, ULIPs, health plans, etc.

List of Government Insurance Companies for General Insurance in India:

In the general insurance segment, there are four public sector companies which are government insurance companies in India. These companies include the following –

  • The New India Assurance Company Limited
    The New India Assurance Company Limited has a rich heritage as it was founded by Sir Dorabji Tata, a leading industrial stalwart. The company came into existence in the year 1919 with its headquarters in Mumbai. The company, which started in India, now has operations in 28 countries of the word. As of March 2017, the company’s global business surpassed INR 22,270 crores wherein the Indian business consisted of INR 19,100 crores. The company has been rated A by AM Best Company in the direct insurance business consistently since 2007. Moreover, since 2014, it has been rated AAA by CRISIL which represents the company’s financial strength to honour its claims. The range of products offered by New India Assurance Company includes the following –

    1. Motor insurance 
    2. Health insurance 
    3. Travel insurance
    4. Personal accident insurance 
    5. Office insurance 
    6. Home insurance
    7. Rural insurance
    8. Marine insurance, etc.
  • United India Insurance Company Limited 

    United India Insurance has been operating in the general insurance segment ever since the year 1938 when it was established. However, in the year 1972, the general insurance business was nationalised by the Government of India. Thereafter, different insurance companies operating in India at that time merged with United India Insurance and the company became a Government-owned general insurer. After nationalisation, United India has grown progressively and currently has a customer base of more than 1 crore individuals. 

    Whether it is designing retail insurance solutions or sophisticated insurance plans for large scale corporations, United India has been a leading name in the general insurance segment. The company has also stressed on insurance penetration in the rural region by promoting and implementing Government-sponsored health insurance schemes like Universal Health Insurance Programme or Vijaya Raji Janani Kalyan Yojana among others.

  • Oriental Insurance Company Limited

    The company was established in the year 1947 as a wholly-owned subsidiary of The Oriental Government Security Life Assurance Company Limited. Later on, the company became a subsidiary of the Life Insurance Corporation of India (LIC) in the year 1956 when LIC was established. Oriental Insurance remained a subsidiary of LIC till the year 1973 when the general insurance business was nationalised in India and the company’s stake was transferred to GIC (General Insurance Corporation of India). In the year 2003, GIC relinquished its ownership in Oriental Insurance transferring it to the Central Government. 

    Today, the company is held only by the Indian Government and has its headquarters in New Delhi. The company sells different types of general insurance products and as per the year ending 2017-18, it has underwritten a premium amount of more than INR 11450 crores.

  • National Insurance Company Limited 

    The oldest general insurance company is the National Insurance Company which was founded in the year 1906 in Kolkata. After its establishment, when the general insurance business was nationalised, National Insurance became a subsidiary of GIC (General Insurance Corporation of India). However, in the year 2002, the company became an independent general insurer held by the Government of India. 

    Besides offering general insurance solutions in India, National Insurance also serves Nepal. The company has various awards under its belt like the Economic Times Iconic Brands Award 2018 in the general insurance category, SKOCH order of merit received in 2017 for being the best general insurer in 2017 to name a few. 

    National Insurance offers a range of general insurance products meant for individuals, businesses, rural sectors and also farmers. The products of the company offer the best coverage benefits at the lowest premium rates.

Specialized Government insurance companies 

Besides life and general insurance companies, the Government of India also owns specialised insurance companies which include the following –

  • General Insurance Corporation of India 

    The General Insurance Corporation of India, or GIC as it is popularly called, is the only Indian reinsurance company in the market. As a reinsurer, GIC insures the insurance policies underwritten by life and general insurance companies. GIC was formed in the year 1972 under Section 9(1) of the General Insurance Business (Nationalisation) Act, 1972. The aim of forming GIC was to supervise, control and operate general insurance business in India. After nationalisation of general insurance, GIC owned the above-mentioned general insurance companies as subsidiaries. However, in November 2000, the Act which created GIC was amended and GIC became a reinsurance company relinquishing its holding over the four public-sector general insurance companies.
    Today, GIC is engaged in the reinsurance business in India as well as in international markets and is considered to be one of the best reinsurance companies.

  • Export Credit Guarantee Corporation of India

    Another specialised insurance company, the Export Credit Guarantee Corporation of India, ECGC, deals in credit risk insurance policies for exports. The company, therefore, aims to promote exports by underwriting the associated risks. 

    ECGC was formed in the year 1957 and was earlier called Export Credit Guarantee Corporation of India Limited. Today, the company’s administrative controls are in the hands of the Ministry of Commerce & Industry. Besides offering credit risk insurance policies to protect against export related losses, the company also serves banks and financial institutions. Indian companies which invest in international joint ventures also resort to overseas investment insurance policies offered by ECGC.

  • Agriculture Insurance Company of India Limited 

    The Agriculture Insurance Company of India Limited, AIC, is a general insurance company which offers insurance solutions for agriculture related products. The company was established in 2002 but it commences operations in April 2003. 

    By providing agriculture insurance to farmers, the company aims to boost agriculture productivity. When the farmers are assured of financial assistance in case of unforeseen losses, they are motivated to be more productive. This boosts agriculture which not only creates a source of revenue for farmers but also increases the country’s GDP.

So, these are the list of Government insurance companies. In the general insurance segment, three of the four public sector insurers, National Insurance, United India Insurance and Oriental Insurance are proposed to be merged into one. Mrs Nirmala Sitharaman, in her debut Budget in July 2019, proposed the merger of these three companies into one unit. This merger would be completed in some time but today these companies are operating independently. You can, therefore, visit https://www.turtlemint.com/ and buy general insurance policies from these companies currently till they are merged. 

List of Claim Settlement Ratio of Life Insurance Companies

There are 24 life insurance companies in the market and each company offers a range of life insurance plans. The plans are competitive in terms of their coverage benefits and premium rates and so choosing the best life insurance plan might prove to be a challenge. You, therefore, need another parameter to judge life insurance companies. Claim settlement ratio is one such parameter which says a lot about an insurance company. Let’s understand what the ratio is and how it acts as a vital parameter –

What is the claim settlement ratio?

Claim settlement ratio is a ratio which shows the number of claims which the insurance company has settled against the total number of claims made on it. The ratio is calculated using the following formula:

Claim settlement ratio = (number of claims settled / total number of claims made) *100

Features of claim settlement ratio

Claim settlement ratio has the following features which should be kept in mind –

  • The ratio is expressed as a percentage
  • The ratio is calculated based on the claims settled in one financial year. There are different ratios for different financial years
  • The ratios are calculated and published for all insurance companies by the Insurance Regulatory and Development Authority of India (IRDAI)
  • The number of claims settled is calculated by the ratio. It does not depict the amount of claim settled by the insurance company.

Interpreting the claim settlement ratio

The claim settlement ratio gives you an insight into the claim settlement record of the insurance company. If the ratio is high it means that the company has settled most of the claims presented upon it. For instance, if the claim settlement ratio is 98%, it means that out of 100 claims, the company has settled 98 claims. A high ratio, therefore, indicates that the company fulfils its promise of claim settlement and is trustworthy.

Alternatively, a low claim settlement ratio is a bad sign. Companies having a low claim settlement ratio have higher instances of claim rejections or pending claims. This is bad for you, the customer because it jeopardises the chances of your claims being honoured.

So, when comparing life insurance companies, you should check the claim settlement ratio of each company. Companies which have a high ratio should be favoured because those companies are more likely to settle your life insurance claims than companies which have a low claim settlement ratio.

Things to remember

Though the claim settlement ratio is an important indicator of a life insurance company’s claim records, there are some things which you should keep in mind –

  • The ratio considers the number of claims settled within a financial year. It does not depict the time taken by the insurance company to settle each claim. If the company takes a long time to settle its claims, it would be a drawback.
  • The ratio does not indicate the number of claims pending with the insurance company.
  • The ratio should not be the only parameter in judging life insurance companies. You should also judge the plans offered, their coverage benefits, premium rates, claim process and reputation of the company to choose the best life insurance policy.

Claim settlement ratio of life insurance companies

The following table shows the claim settlement ratios as well as the claim rejection ratios of all life insurance companies. Claim rejection ratio is the opposite of claim settlement ratio. It measures the number of claims rejected by the insurance company against the total number of claims made on it in a financial year. Let’s check both the ratios for a better understanding of the claim records of different life insurance companies. For term plans, term plan claim settlement ratio is checked but that is a part of the company’s claim settlement ratio. IRDA does not publish any specific data for term plan claim settlement ratio.

The claim settlement ratios are for the financial year 2017-18:

Name of the company Claim Settlement Ratio Claim Rejection Ratio
Life Insurance Corporation of India 98.04% 0.67%
HDFC Life Insurance Company Limited 97.80% 1.66%
Max Life Insurance Company Limited 98.26% 1.72%
ICICI Prudential Life Insurance Company Limited 97.88% 1.77%
Kotak Mahindra Life Insurance Company Limited 93.72% 5.69%
Aditya Birla SunLife Insurance Company Limited 96.38% 2.80%
TATA AIA Life Insurance Company Limited 98% 2%
SBI Life Insurance Company Limited 96.76% 2.63%
Exide Life Insurance Company Limited 96.81% 3.04%
Bajaj Allianz Life Insurance Company Limited 92.04% 5.79%
PNB MetLife India Insurance Company Limited 91.12% 8.05%
Reliance Nippon Life Insurance Company Limited 95.17% 4.48%
Aviva Life Insurance Company Limited 94.45% 4.83%
Sahara India Life Insurance Company Limited 82.74% 8.48%
Shriram Life Insurance Company Limited 80.23% 17.80%
Bharti AXA Life Insurance Company Limited 96.85% 2.36%
Future Generali India Life Insurance Company Limited 93.11% 5.34%
IDBI Federal Life Insurance Company Limited 91.99% 7.49%
Canara HSBC OBC Life Insurance Company Limited 95.22% 4.54%
Aegon Life Insurance Company Limited 95.67% 4.33%
DHFL Pramerica Life Insurance Company Limited 96.62% 2.20%
Star Union Dai-ichi Life Insurance Company Limited 92.26% 6.53%
IndiaFirst Life Insurance Company Limited 89.83% 10%
Edelweiss Tokio Life Insurance Company Limited 95.25% 4.76%

When you are comparing life insurance policies, do keep the claim settlement ratio of the insurance companies in mind. Compare the insurance companies on www.turtlemint.com with regards to their claim settlement ratios and choose a company which has the maximum possible ratio. You can compare and choose the best life insurance company on https://www.turtlemint.com/life-insurance and opt for the one which best suits your needs.

Best Single Premium Policy India

Life insurance policies allow you flexible premium payment modes. There are regular premium plans, limited premium plans and single premium insurance plans. Under regular premium policies, you pay premiums throughout the term of the plan. Under limited premium plans, premiums are paid for a limited period which is lower than the total plan duration. Single premium policies, on the other hand, involve payment of a lump sum premium when you buy the plan. You pay the premium at once and enjoy coverage throughout the chosen term of the policy.

Many individuals who have a lump sum amount of money to invest choose single premium life insurance plans. The benefits of these plans include the following –

  • Since the premium is payable at once you don’t have to remember the premium payment due date during the plan tenure
  • The policy remains in force throughout the term since there is no possibility of a lapse from non-payment of premiums
  • Single premium traditional life insurance policies acquire a surrender value from the second policy year itself
  • The policy is ideal if you cannot guarantee payment of premiums over the policy tenure
  • Almost all types of life insurance plans allow a single premium payment mode. You can, therefore, choose any type of life insurance plan for your coverage needs and pay a single premium for the policy

Who can buy single premium life insurance policies?

There are no special eligibility parameters to buy single premium policies. You just have to be within the minimum and maximum entry age bracket specified under the policy to be eligible to buy a single premium life insurance plan.

Why should one buy single premium life insurance policy?

You should opt for a single premium life insurance policy if you want life insurance coverage but do not wish to keep paying premium for a long period of time. This type of policy is best suited for people who have short lived careers like players, actors, etc. or who get a large amount of money by inheritance.

Single premium policies do not have regular premium commitment and even businessmen sometimes prefer to opt for the same.

How does the single premium plan work?

The working of a single premium life insurance policy is quite simple. Here’s how the plan works –

  • You choose the type of life insurance plan that you want to buy
  • You can then compare the available plans in that category
  • Choose a plan based on your coverage requirements and check whether the plan offers the single premium mode of payment
  • You can then choose the coverage level, policy tenure and pay the required single premium
  • The insurance company underwrites your insurance proposal and issues the policy
  • You don’t have to pay any more premiums in the future and the policy continues for the specified tenure
  • If you die during the term of the policy, the promised death benefit would be paid and the policy would be terminated
  • In case the term comes to an end, the policy matures and you get the maturity benefit

Tax implications of single premium policies in India:

Before buying a single premium life insurance plan you should understand the tax implications of the premiums paid and the benefits received. The tax treatment of single premium policies, therefore, is as follows –

  • The single premium paid would be allowed as a deduction under Section 80C only if the sum assured is 10 times the amount of the single premium paid.Let us understand this with an example.
    • Single Premium amount is INR 10,000
    • Sum Assured needs to be >INR 1 lakh,
      i.e. 10 times the premium amount, i.e. 10 * 10,000 = 1 lakh
    • If the Sum Assured >= INR 1 lakh, the single premium paid towards that plan is tax free U/S 80C
    • However, if the Sum Assured < INR 1 lakh say INR 80,000, i.e. < 10 times the premium, then only 10% of the sum assured would be eligible for tax exemption
    • Thus, for Sum Assured of INR 80,000 where single premium amount is INR 10,000,
      an amount of 10% of the Sum Assured, i.e. 10% of 80,000 = INR 8,000 would be eligible tax deduction U/S 80C and not the remaining INR 2,000
  • Even in the case of maturity benefit, if the sum assured is not at least 10 times the single premium paid, the entire maturity benefit would be taxable in your hands.So, in our previous example,
    • Single Premium amount is INR 10,000
    • Sum Assured needs to be >INR 1 lakh,
      i.e. 10 times the premium amount, i.e. 10 * 10,000 = 1 lakh
    • If the Sum Assured >= INR 1 lakh, the maturity benefit in that plan is tax free U/S 10(10)D
    • However, if the Sum Assured < INR 1 lakh say INR 80,000, i.e. < 10 times the premium, then the entire amount received on maturity would be taxed as per the current income tax slab rates.
  • In case of the death benefit, however, the benefit received would be completely tax-free irrespective of whether the sum assured was 10 times the single premium paid or not.
  • Single premium policies should be held for at least two full policy years before they are surrendered to claim tax benefits on the surrender value. If the single premium policy is surrendered after two policy years, the surrender value would be tax-free in your hands. If not, the surrender value would be fully taxable at your income tax slab rates.

An overview: Best single premium policy in India

Here is a comparative list of some of the best single premium policies in India –

Name of the plan Type of plan Entry age bracket Sum assured Term  Single premium payable
LIC’s Jeevan Shanti Traditional immediate/deferred annuity plan 30 to 100 years NA NA INR 1.5 lakhs onwards
Pradhan Mantri Vaya Vandana Yojana Traditional pension plan 60 years onwards NA 10 years INR 144,578 to INR 15 lakhs
AEGON iMaximize Single Premium Insurance Plan Unit linked insurance plan 8 to 60 years 1.10 or 1.25 times the single premium paid 5 or 10 years INR 1 lakh onwards
ICICI Pru Immediate Annuity Plan Traditional pension plan 30 to 100 years NA NA Depends on the annuity amount
HDFC Click 2 Invest Unit linked insurance plan 30 days to 65 years 1.25 times the single premium paid 5 to 20 years INR 24,000 onwards
LIC’s Single Premium Endowment Plan Traditional Endowment Assurance 90 days to 65 years INR 50,000 onwards 10 to 25 years Depends on age,the sum assured and term
LIC’s New Bima Bachat Traditional money back plan 15 years to 66 years INR 35,000 onwards 9,12 or 15 years Depends on age,the sum assured and term

Overview of the best single premium life insurance plans in India:

Here’s a brief look into the features and benefits of the best single premium life insurance plans listed above –

LIC’s Jeevan Shanti

This is a pension plan which can be taken as an immediate annuity plan or a deferred annuity plan. The plan’s features are as follows –

  • There are nine options to avail annuity payments
  • The annuity amount is promised at the time of buying the policy and it is payable throughout your life
  • If deferred annuity option is selected, guaranteed additions are also paid
  • The loan can be availed under the policy after the policy has completed one year

Pradhan Mantri Vaya Vandana Yojana

This is a pension plan which has been introduced by the Government for senior citizen’s investment and pension needs. The plan offers pensions during the policy tenure. The features of the plan are as follows –

  • If the insured dies during the policy tenure, the single premium paid is refunded back
  • On maturity, the single premium paid and pension instalments are paid
  • Pension is payable during the policy tenure and can be availed in monthly, quarterly, half-yearly or annual instalments.

AEGON iMaximize Single Premium Policy 

This is a unit linked plan which gives you attractive returns with just one investment. The plan has the following features –

  • There are six investment funds to choose from
  • Top-ups are allowed to increase your investment any time that you want
  • Partial withdrawals are allowed after the completion of the first five years

ICICI Pru Immediate Annuity Plan

Under this plan, you get lifelong income in the form of annuities after you pay the single premium. Other features of the plan include the following –

  • There are 12 annuity pay-out options
  • The annuity instalments can be deferred in which case the annuity rates would increase
  • If you have invested in the National Pension Scheme (NPS), you would get a discount on the purchase price

HDFC Click 2 Invest

This is a unit linked insurance plan which also allows single premium payment mode other than the regular and limited premium payment modes. The features of the plan are as follows –

  • There are eight investment funds to choose from
  • The plan can be easily bought online by filling up a Short Medical Questionnaire (SMQ)

LIC’s Single Premium Endowment Plan 

The plan creates a guaranteed corpus for you and promises the payment of a death benefit or maturity benefit. The features and benefits of the plan include the following –

  • The plan participates in the insurer’s profits and earns simple reversionary bonuses throughout the policy tenure.
  • A final additional bonus might also be paid on death or maturity of the plan
  • Premium discounts of up to 30% of the sum assured are allowed if you choose the higher sum assured levels of INR 1 lakh and above.

LIC’s New Bima Bachat

This is a with-profits money back policy which provides liquidity during the policy tenure. The plan’s benefits are as follows –

  • Loyalty additions are promised after the first five policy years
  • 15% of the sum assured is paid as money back benefit from the end of the 3rd policy year and every three years thereafter
  • The single premium paid is refunded back on the maturity of the policy along with loyalty additions
  • The premium discount is available at high sum assured levels

These are some of the best single premium life insurance plans available in the market. Turtlemint offers life insurance plans, you can select the plans based on our requirement buy visiting https://www.turtlemint.com/life-insurance

You need to choose a plan as per your coverage needs and enjoy the plan’s benefits. The premium is payable only once while you can enjoy coverage for the selected plan duration. Single premium policies are, therefore, a convenient way to avail insurance.

10 Best Health Insurance Companies in India 2021

Today’s age is the age of technology where medical treatments have become advanced and cutting edge. There are treatments for most chronic illnesses too and so life expectancy has increased. However, though medicine has advanced, it has also become expensive. Affording quality healthcare has become financially distressing in modern times. Moreover, as life expectancy has increased, so has the incidence of illnesses. You, therefore, need a health insurance plan to cover the rising costs of medicine and protect yourself financially in a medical emergency. 

In India, there are more than two dozen health insurance companies which offer a range of health insurance plans for your needs. Some companies also feature in the top 10 health insurance companies from which you can choose the best health insurance policy.So, let’s have a look at the top 10 health insurance companies in India 2020 – 

Here is a list of the top 10 health insurance companies in India that offer some of the best health insurance plans:

List of top 10 health insurance companies in India 

Name of the company 

Type of ownership

Owned by 

The network of cashless hospitals

Manipal Cigna Health Insurance Company Limited

Privately owned company

Manipal Group and Cigna Corporation

4000+ hospitals in India

National Insurance Company Limited

Public company

Government of India

Almost all leading hospitals of India

Religare Health Insurance Company Limited

Privately owned company

Religare Enterprises Limited

5420+ hospitals in India

Star Health & Allied Insurance Company Limited

Privately owned company

ICICI Ventures, Oman Insurance Company, Sequoia Capital, Alpha TC Holdings and TATA Capital Growth Fund

9600+ hospitals in India

Universal Sompo General Insurance Company Limited

Privately owned company

Indian Overseas Bank, Allahabad Bank, Dabur Investments, Karnataka Bank Limited and Sompo Japan Nipponkoa Insurance Inc.

4000+ hospitals in India

Aditya Birla Health Insurance Company Limited 

Privately owned company

Aditya Birla Group

5700+ hospitals in India

Apollo Munich Health Insurance Company Limited

Privately owned company

Apollo Hospitals Group and Munich Health

5000+ hospitals in India

HDFC Ergo General Insurance Company Limited

Privately owned company

HDFC Limited and ERGO International AG

9000+ hospitals in India

SBI General Insurance Company Limited

Privately owned company

State Bank of India and IAG (Insurance Australia Group)

3000+ hospitals in India

The New India Assurance Company Limited 

Public company

Government of India

Almost all leading hospitals in India

A brief overview of the top 10 health insurance companies

Here’s a quick look into what makes the above-mentioned health insurance companies the top 10 health insurance companies in India.

Manipal Cigna Health Insurance Company Limited

  1. The company has won various awards for its operations. The company’s ProHealth Plan was voted the ‘Product of the Year’ according to the Consumer Survey of Product Innovation 2019
  2. The company offers a range of tailor-made plans which can be customized as per your needs
  3. The premiums are affordable and the company’s wide hospital network ensures easy cashless claim settlements

National Insurance Company Limited

  1. The company has the largest Bancassurance tie-up with leading banks in India
  2. The company enjoys a huge customer base as it is one of the oldest insurers in India
  3. A range of health insurance products are offered by the company with affordable premium rates
  4. The company has been felicitated by the Economic Times Best Brands Award in recent times

Religare Health Insurance Company Limited

  1. The company offers an in-house claim settlement department ensuring that your claims are settled at the earliest
  2. A wide range of health insurance plans is available with best-in-class coverage benefits and sum insured levels of up to INR 6 crores
  3. The company has won many awards with the latest being the ‘Best Health Insurance Company’ Award at the ABP News-BFSI Awards

Star Health & Allied Insurance Company Limited

  1. The company has won the ‘Health Insurer Provider of the Year’ Award
  2. The company has settled more than 4.9 million claims since it was established and therefore has a high claim settlement ratio
  3. There is an in-house claim settlement department which makes claim settlement easy and convenient

Universal Sompo General Insurance Company Limited

  1. The company enjoys a high claim settlement ratio which is more than 90%
  2. The company has won the Fintelekt-Insurance awards 2017 for its claim services
  3. The company has a wide variety of health insurance products suitable for every individual

Aditya Birla Health Insurance Company Limited

  1. The company has settled more than 63,000 claims ever since it has been established
  2. The company enjoys a wide customer base of more than 23 lakh individuals
  3. A range of health and wellness services are offered by the company to promote healthy living

Apollo Munich Health Insurance Company Limited

  1. The company offers the only Dengue care health plan at very low premium rates
  2. The HealthJinn application of the company allows you to buy a health plan from your mobile phones. You can also keep a record of your policy and make a claim through the application
  3. 90% of the claims are settled within an hour making the claim settlement process a breeze

HDFC Ergo General Insurance Company Limited

  1. The company has insured more than 1 crore lives till date
  2. The company allows you 24*7 support for any type of query or grievance that you have
  3. The company responds to 90% of the cashless claims within 20 minutes of intimation. Reimbursement claims, on the other hand, are approved within 3 days
  4. The company has launched a wellness application which helps you track your health and live healthily

SBI General Insurance Company Limited

  1. The company has a widespread presence in India with more than 23,000 branches through State Bank branches and more than 5500 branches of Regional Rural Banks
  2. The company offers health insurance solutions to retail customers, corporate customers and even to the SME sector

The New India Assurance Company Limited

  1. The company not only operates in India but has its branches in 28 other countries of the world. The company, therefore, offers international standard to services to its customers
  2. The company has been rated AAA/Stable by CRISIL
  3. The company’s financial figures depict the company’s strong financial foundation. It enjoys a high solvency ratio of 2.13 with a global gross written premium of INR 7861 crores. The company’s net worth is INR 37,483 crores with an asset base of INR 60,437 crores as per the financial reports of the first quarter ending on 30th June 2019.

There are different types of health insurance plans offered by these top 10 health insurance companies. Let’s have a look at how you can choose the most suitable plan now that you know about the top 10 health insurance companies.

How to choose a health insurance plan?

Among the different varieties of health insurance policies available in the market, choosing the most suitable health plan might prove to be a challenge. So, here are some pointers on how you can choose the best health insurance plan for yourself and your family.

best health insurance plan for yourself and your family

Types of health insurance plans in India:

These top 10 health insurance companies in India offer different types of health insurance plans. Let’s find out the types of plans available and what exactly such plans cover – 

Indemnity Health Insurance Plans: This type of plan pays only for the expenses incurred during hospitalization.

  • Individual health insurance policies –
    Individual health insurance plans cover a single person. The plan has a single coverage amount or sum insured which can be utilised by the insured individual for his medical costs.
  • Family floater health insurance plans –
    These health plans cover the entire family under one sum insured. Family members include you, your spouse, dependent children and dependent parents. Moreover, there are family floater plans which allow coverage for your extended family members too like your uncle, aunt, siblings, etc. Under family floater health insurance plans, a single health insurance plan is issued and the policy covers all family members. Every covered member would be covered for the full sum insured. However, if one member of the family makes a claim, the sum insured would be reduced. Subsequent claims in the same policy year would then be covered up to the reduced sum insured. Family floater health insurance plans have lower premiums compared to individual health insurance plans for different family members. As such, family floater health insurance plans are quite popular and the top ten health insurance companies offer one or more family floater health plans with comprehensive coverage.

  • Senior citizen health insurance plans –
    Normal health insurance plans might have a limit on the entry age. These plans usually allow the maximum entry age to 60 or 65 years. For older individuals, there are senior citizen health insurance plans.
    Senior Citizen health insurance plans are specially designed for providing coverage individuals who are senior citizens, i.e. aged 61 years and above. Senior citizen plans can be taken to cover a single individual or both the husband and wife on a family floater basis. The sum insured under these plans is limited and the premiums are affordable so that older individuals can afford coverage. Moreover, the coverage benefit under senior citizen health insurance plans are also designed keeping in mind the health needs of senior citizens.

  • Top-up and super top-up health insurance policies 
    Top-up and super top-up health insurance plans act as complementary health insurance plans to increase your existing health insurance coverage. Under these health plans, there is a fixed deductible limit and a sum insured. You can choose both the limit and the coverage amount. These plans cover the actual medical costs that you incur provided that the costs exceed the selected deductible. If the claim is below the deductible limit, nothing would be paid. However, if the claim exceeds the deductible limit, the excess would be covered by top-up and super top-up health plans. Thus, if you have an existing health insurance plan, the coverage of the plan can be chosen as a deductible under a top-up or super top-up plan. Claims up to the deductible would be paid by your existing health insurance plan. Excess, if any, would be paid by the top-up or super top-up health insurance plans. Thus, you can get coverage for high sum insured levels at affordable premiums because top-up and super top-up plans have low premiums. Moreover, if you choose top-up and super top-up plans offered by the 10 best health insurance companies, you would also get a comprehensive scope of coverage which covers a range of medical expenses which you might incur. 
  • Disease specific health insurance policies –
    Under disease specific health insurance policies, one or more specific illnesses are covered. Such illnesses are not considered pre-existing illnesses and you get coverage within a short time after buying the policy. Thereafter, if you suffer any medical complications due to the covered illnesses, the plans would pay the medical costs that you incur. Common illness or disease specific health insurance plans include diabetes care plans, cardiac care plans, dengue plans, etc. The 10 best health insurance companies offer unique disease specific health insurance plans for a comprehensive coverage against some of the most dreaded illnesses.

Types of Fixed benefit health insurance policies in India:

These types of plans pay a fixed amount of money on diagnosis of the listed ailment, irrespective of the amount spent on hospitalization. 

Under fixed benefit health insurance plans, the following types of plans can be found – 

  • Critical illness health plan –
    Critical illness health insurance plans cover specified critical illnesses and medical procedures. If during the term of the policy, you are diagnosed with any of the covered illness or you undergo any of the covered medical procedures, the plan pays the entire coverage amount in a lump sum. Common critical illnesses which are covered include cancer, first heart attack, open chest CABG, Coma, kidney failure where regular dialysis is required, etc. When you choose critical illness plans offered by the top ten health insurance companies, you can get coverage against an exhaustive list of critical illnesses.
  • Hospital cash plan –
    Hospital cash plan is also a fixed benefit health plan. Under this plan, if you are hospitalised for 24 hours or more, a fixed lump sum benefit would be paid daily for each day of hospitalisation. Moreover, there is a fixed daily benefit if you are admitted to the ICU. In case of ICU admission, the hospital daily benefit payable usually doubles. The fixed daily benefit is paid up to a specified number of days per instance of claim.
  • Personal accident plans 
    Under personal accident plans, accidental death and disablements are covered. If, in an accident, you suffer accidental death or total/partial permanent disablement, a lump sum benefit would be paid. The benefit depends on the contingency suffered. In case of accidental death and accidental total and permanent disability, 100% of the sum insured is paid. For partial disabilities, 25% to 75% of the sum insured is paid depending on the disability suffered. Personal accident plans also allow optional coverage benefits for loss of job, funeral expenses, fractures, children’s education fund, etc.

A list of all the top 10 health insurance companies are mentioned on this page from where you can take your pick of a health insurance product from the above-mentioned insurers and be assured that you would get the best health insurance coverage. Turtlemint provides you with a comprehensive overview of all the health insurance plans offered by the top 10 health insurance companies so that you can enjoy comprehensive coverage with some of the best features and the premiums would also be affordable. Moreover, with the wide network of tied-up hospitals which then top 10 health insurance companies have, your claims would be settled on a cashless basis and that too within the shortest possible time. So, choose these top 10 health insurance companies from Turtlemint and enjoy good health insurance coverage.

LIC Jeevan Saral Plan: Features, Benefits & More

The Life Insurance Corporation of India offers a range of life insurance plans right from term insurance to unit-linked plans. The plans can be traditional insurance plans or market-linked ones. While traditional plans promise a guaranteed benefit on maturity or death, unit-linked plans do not guarantee the benefits since returns depend on market performance.

Jeevan Saral is a traditional endowment assurance plan which is offered by LIC. The plan, being traditional in nature, pays guaranteed benefits on maturity or death. However, this plan has been discontinued by the LIC of India.

Let’s understand the plan in details –

Features of LIC’s Jeevan Saral Plan:

  1. This is a regular premium policy where premiums are paid throughout the term of the plan.
  2. This is a participating policy which promises loyalty additions. Loyalty additions, in the form of a terminal bonus, are paid either on early death or maturity of the plan. The rate of loyalty additions depends on the performance of the insurance company.
  3. You can enhance the coverage of the plan by choosing the available riders.
  4. You can surrender the policy and terminate the coverage if the plan was active for the first three policy years.

Benefits offered under the plan:

The following benefits are promised under LIC’s Jeevan Saral Policy –

Benefits payable Amount of benefit
Death Benefit of LIC Jeevan Saral Policy If the insured dies during the chosen term of the policy, a death benefit is paid. The death benefit is equal to the following –

250 times the monthly premium paid + refund of premiums paid from the second policy year + loyalty additions

Maturity Benefit of LIC Jeevan Saral Policy If the insured survives till the end of the selected tenure, a maturity benefit is paid. This benefit is equal to the maturity sum assured and loyalty additions. The maturity sum assured is calculated depending on the age of the insured and the amount of premium paid.
Surrender Value of LIC Jeevan Saral Policy If you choose to surrender the policy, higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) would be paid. The calculations of these values would be done using the following formulas –

  • GSV – 30% of total premiums paid from the second policy year
  • SSV – 80% of the maturity sum assured if premiums are paid for more than 3 years but less than 4 years
  1. 90% of the maturity sum assured if premiums are paid for more than 4 years but less than 5 years
  2. 100% of the maturity sum assured if premiums are paid for more than 5 years

Premium payable for LIC’s Jeevan Saral:

You can decide on the amount of premium that you want to pay for LIC’s Jeevan Saral policy. Based on the premium amount selected, the maturity benefit and death benefit of the plan are calculated. Moreover, you can also choose to pay the premiums annually, quarterly, half-yearly or monthly. Monthly payments are allowed only through salary deductions. Premiums are payable for the entire duration of the policy.

Loyalty Additions under LIC’s Jeevan Saral Plan:

  1. The rate of loyalty additions is not fixed. It is determined by LIC depending on the profits earned by it in a financial year.
  2. Loyalty additions are added if the plan completes 10 policy years. Death or maturity after 10 years would give you additional loyalty additions.

Tax benefits of LIC’s Jeevan Saral:

LIC’s Jeevan Saral policy offers the following types of tax benefits –

  1. Premium payment U/S 80C:
    The premiums paid for the plan are allowed as a deduction from your taxable income up to INR 1.5 lakhs under Section 80C.
  2. Maturity benefit U/S 10(10)D:
    1. The surrender benefit received would be tax-free in your hands under Section 10 (10D).
    2. The maturity or death benefit received under the plan would also be tax-free under Section 10 (10D).

Summing up:

LIC’s Jeevan Saral Plan is a simple endowment plan which helps you create a savings corpus which is guaranteed in nature. The loyalty additions add to the plan benefits and make it more attractive. There are easy options of surrendering the policy too and the surrender value promised is also high. Currently, LIC does not offer this policy. However, if you have invested in Jeevan Saral at an earlier date, you can still reap the benefits promised by the plan.