LIC Life Insurance Vs Bajaj Allianz Life Insurance: Check plans and Coverages
Life insurance has a very crucial role in safeguarding your family’s financial future when you're no longer there to support them. It ensures that your family will be able to manage their daily expenses and long-term financial commitments, even in your absence.
As there are numerous life insurance options available in India, choosing the right insurance can be difficult sometimes. Two of the most popular insurance companies that stand out prominently in India are LIC Life Insurance and Bajaj Allianz Life Insurance.
In this blog, we'll provide a detailed comparison of LIC Life Insurance and Bajaj Allianz Life Insurance, examining their features, benefits, and key differences. Let’s start with a quick overview of both the insurers.
Table of Contents
- About LIC Life Insurance
- About Bajaj Allianz Life Insurance
- Features and Benefits of LIC Life Insurance Vs Bajaj Allianz Life Insurance
- Head To Head Comparison Between LIC Life Insurance vs Bajaj Allianz Life Insurance
- Who Wins: LIC Life Insurance Vs Bajaj Allianz Life Insurance?
- Frequently Asked Questions (FAQs)
About LIC Life Insurance
The Life Insurance Corporation of India, or LIC is the largest insurance provider in India, established in 1956. In the span of 67 years, LIC has issued more than 2.04 crore policies.
In the fiscal year 2022-23, the company processed claims totalling ₹2,09,938 crore and held a market share of 71.76%. LIC is a trusted name in the industry for its high claim settlement ratio of 92.65% and provides a variety of insurance products catering to both individual and group needs. The corporation operates through an extensive network of branches and agents and offers 24/7 customer support.
About Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance, a private insurance company, is a joint venture between Bajaj Finserv and Allianz SE. From FY 2006–07 to FY 2023–24, the company paid ₹6,418.97 crore in individual claims, displaying a remarkable claim settlement ratio of 99.23%. With ₹1,09,829 crore in total asset value under management, 4.19 crore lives have been insured. This organization offers an inclusive selection of affordable insurance options and has a high AAA rating from CARE.
Features and Benefits of LIC Life Insurance Vs Bajaj Allianz Life Insurance
1. Premiums
LIC
LIC term insurance plans offer high life coverage at affordable premium rates. These LIC plans are designed for people with different budgets so they can be accessible to a wide range of audiences.
Bajaj Allianz Life Insurance
Bajaj Allianz also offers competitive premium rates on different policies, such as term life insurance and many others. This makes it easier for you to financially secure your family without overspending.
2. Policy Features
LIC
LIC life insurance policies are especially known for their stability and reliability over the long term. In fact, some of the plans offer guaranteed returns along with bonuses.
Bajaj Allianz Life Insurance
As already mentioned above, Bajaj Allianz life insurance plans offers a comprehensive selection of plans that allow policyholders to create wealth and retirement corpus. Some plans, like ULIP, offer the dual benefits of both protection and investment.
3. Claim Settlement Ratio
LIC
For the fiscal year 2022-23, LIC had a remarkable claim settlement ratio of 98.52%. This high ratio shows LIC's dedication to processing claims quickly and with ease.
Bajaj Allianz Life Insurance
For the fiscal year 2022-23, Bajaj Allianz’s claim settlement ratio is 99.04%, indicating that they settle a significant number of claims successfully each year.
4. Premium Payment Options
LIC
With LIC, you can choose from several premium payment options, such as single, quarterly, monthly, half-yearly, and even yearly.
Bajaj Allianz Life Insurance
The same goes for Bajaj Allianz Life Insurance; they also offer the flexibility to pay premiums on a single, quarterly, monthly, half-yearly, and yearly basis at your convenience.
5. Riders/Add-ons
LIC
You can add the below optional riders to your LIC life insurance base policy by paying an additional premium.
- LIC's Linked Accidental Death Benefit Rider
- LIC's Accidental Death and Disability Benefit Rider
- LIC's Accident Benefit Rider
- LIC's Premium Waiver Benefit Rider
- LIC’s New Critical Illness Benefit Rider
- LIC's NEW TERM ASSURANCE RIDER
- LIC's Premium Waiver Benefit Rider (With Auto Cover)
Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance offers the below riders benefits.
- Waiver of Premium Benefit Rider
- Family Income Benefit Rider
- Accidental Death Benefit Rider
- Critical Illness Benefit Rider
- Accidental Permanent Total/Partial Disability Benefit Rider
6. Tax Benefits
Premiums paid towards LIC and Bajaj Allianz life insurance plans are eligible for tax benefits under Sections 80C of the IT Act of 1961. Plus, the maturity proceeds, including any gains from ULIPs or traditional policies, are tax-free under Section 10(10D).
Head To Head Comparison Between LIC Life Insurance vs Bajaj Allianz Life Insurance
|
Parameter |
LIC Life Insurance |
Bajaj Allianz Life Insurance |
|
Claim settlement ratio (FY 2022-2023) |
98.52% |
99.04% |
|
Availability |
Online and offline both |
Online and offline both |
|
Yes |
Yes |
|
|
Survival Benefit |
Yes |
Yes |
|
Riders |
Accidental death benefit rider, accidental death and disability benefit rider, critical illness benefit rider, and new term assurance rider |
Accidental death rider, accidental permanent disability, premium waiver rider, critical illness benefit, and family income benefit rider |
|
Type of the Insurer |
Government |
Private |
|
Types of plans |
Term insurance, Whole life policy, Endowment policy, ULIP, Money back policy, Pension Plan, Micro Insurance Plan, Withdrawn Plan, and Group Insurance plan |
Term insurance, Whole life policy, Endowment policy, ULIP, Money back policy, Retirement Plan, Savings Plan, Childs Plan, and Group Insurance plan |
|
Entry age (min-max) |
18-65 |
18-65 |
Who Wins: LIC Life Insurance Vs Bajaj Allianz Life Insurance?
In this guide, we have tried to cover all the major features and benefits of the two insurers. The verdict is that both LIC and Bajaj Allianz Life Insurance have their unique strengths. On some parameters, they stand the same, like tax benefits and premium payment options, while on some, they have different features.
Your choice between the two should depend on your specific needs, financial goals, and preferences. Need help to decide between LIC Life Insurance Vs Bajaj Allianz Life Insurance? Give us a call at +91-7551196989 or book a home visit at your preferred time.
Frequently Asked Questions (FAQs)
Ques 1. What type of life insurance policies are offered by LIC Life Insurance and Bajaj Allianz Life Insurance?
Ans. LIC Life Insurance and Bajaj Allianz Life Insurance offer different types of life insurance policies, such as Endowment Plans, Whole Life Plans, Money Back Plans, Term Insurance, and ULIPs (Unit Linked Insurance Plans)
Ques 2. Which insurer has a higher claim settlement ratio, Bajaj Allianz or LIC?
Ans. Bajaj Allianz Life Insurance has a higher claim settlement ratio of 99.04% than LIC Life Insurance, with 92.65% in FY 2022-2023.
Ques 3. Which are the top insurance companies in India?
Ans. The top insurance companies in India include ICICI Prudential, HDFC Life, Max Life Insurance, SBI Life, TATA AIA, Bajaj Allianz, PnB MetLife, Canara HSBC Life Insurance, Aditya Birla Sun Life Insurance, and LIC.
