Choose Your Term Insurance Plan Based on Claim Settlement Ratio

Claim settlement ratio is an important factor you must consider, before purchasing a term life insurance plan. This may not be the sole criteria to judge the performance of an insurer, but claim settlement ratio ensures your nominee/beneficiaries claim is settled. Higher the claim settlement ratio, higher are the chances of your claim getting settled by the insurer.

Want to know more on Term Life Insurance? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Term Insurance Benefits:

• Provides life cover and financial protection to the insured and shields the dependents of his family in case of sudden demise of the policyholder.
• Provides a large sum assured within a budget-friendly premium.
• The term insurance plans can be bought for a very nominal monthly premium and the policy requires you to pay a constant premium across the term of the policy.
• Offers lower premium rates for non-smokers and females.
• Under term insurance plans you can choose the policy period, premium payment mode and premium frequency.
• You can also opt for additional riders which provide the insured with supplementary coverage, along with already existing benefits. So a buyer can modify the already existing policy by adding riders.
• The term insurance plan is an efficient tax saving instrument. Section 80C of the income tax act allows tax deduction of up to Rs 1.5 Lakh a year on premiums paid for term life plans. The death benefit received by the nominee is fully tax exempt under Section 10(10D) of the income tax act.

SEE ALSO: Best Term Insurance Plans In India

Term Insurance Online:

An online policy or an offline term plan can make a huge difference in the amount of premium you pay. Buying online plans through online aggregators is beneficial and economical. The experts say that online term insurance plan is almost 40% cheaper than offline plans.

There are several benefits of online term insurance plans. You can compare insurers and check customer reviews and ratings based on claim settlement ratio and service. This kind of evaluation helps you understand, which insurer to choose.

To Apply for Term Life Insurance Online:

• Visit the website of the insurer
• Provide the necessary personal details and other requisite details
• Fill up the application form 
• Mention the preferred sum assured and the type of premium payment
• Purchase the term life plan through the available mode of payment

Claim Settlement Ratio:

Claim settlement ratio is an indicator on how many death claims a particular life insurer has settled in the financial year.  This is one of the main points you must keep in mind, before choosing a term life insurance plan. Compare insurers based on claim settlement ratio. An insurer who has a claim settlement ratio above 90 is a good choice.

Get an idea on how customer friendly an insurer is vis-a-vis dealing with death claims. The term plan is of no use if the nominees don’t get the death benefit. It is important to look at the claim settlement ratio of an insurer, before availing term life insurance plans. It is important for the policyholder to disclose all personal, health and lifestyle details to the insurer. This reduces the chances of rejection of claims in term life insurance plans.

SEE ALSO: Why Buy Term Life Insurance In April?

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.