Everyone of us want to spend as much time as possible with our family and loved ones. But while enjoying the luxuries of life one should also be aware that life is highly uncertain.
We do not want to leave our families in the situation of financial crunch and to go through unnecessary hardships. It is possible to secure their needs with minimum amount of investment now, than to worry much later in life.
How to choose the best Term Insurance Company?
Such an important decision taken for the well being of your family needs to be thought through to reach a perfect conclusion. There are a number of term insurance companies available in the market today, but choosing the best one to suit your personal requirements is the ultimate aim.
Here are the factors based on which you can choose the right term insurance company:
Before trying to hunt for the perfect Term Insurance Company one must list down all the requirements he/she is looking for in the term insurance policy. Factors which will determine your basic requirements are:
- Amount of life cover
- Current health status
- Number of dependants
- Annual Income
- Current Liabilities
- Lifestyle, etc.
Before buying a Term Insurance Policy it will be helpful to understand the customer service provided by the Insurance Company. The policyholder's confusions and queries should be solved in a precise and timely manner. This could prove to be beneficial while educating yourself about the Term Insurance Policy you are buying. Understanding the tenure, the amount of premiums, sum assured, terms and conditions, benefits, riders and other details is important for a policyholder.
After Sales Support
This is one of the most important factors for choosing a Term Insurance Company. The process of buying a Term insurance policy is not the end of the road. Providing after sales support is as important as buying an insurance policy. While claiming for a life insurance policy, for example: term insurance, the beneficiaries of a policyholder are already grieving due to the loss of a loved one. In such a situation, it becomes highly important to provide the much needed assurance and support required for claim settlements.
Investing in term insurance is a long term commitment for both, the Insurance Company as well as a policyholder. The Insurance company should be able to keep its promises even 25 years down the line. Selecting a company, which has proven its credibility by having a high number of settled claims will be helpful in the long run.
Claim Settlement Ratio of the Insurer
The Claim Settlement Ratio of an Insurance Company is deduced by calculating the number of claims received in a year against the number of claims settled. This ratio is a huge factor in determining the credibility of a company.
To give you a better understanding, we have listed down the claim settlement ratio of all the life insurance companies in India who offer Term Insurance:
|Insurance Company Name||Incurred Claim Ratio|
|Aegon Life Insurance Company||95.30%|
|Aviva Life Insurance Company||82%|
|Bajaj Allianz Life Insurance Company||91.30%|
|Bharti AXA Life Insurance Company||80%|
|Birla Sun Life Insurance Company||88.45%|
|Canara HSBC Life Insurance Company||92.99%|
|DHFL Pramerica Life Insurance Company||57.19%|
|Exide Life Insurance Company||86.10%|
|IDBI Federal Life Insurance Company||84.79%|
|IndiaFirst Life Insurance Company||72.21%|
|Kotak Life Insurance Company||90.73%|
|LIC Life Insurance Company||98.19%|
|PNB MetLife Insurance Company||92.90%|
|Reliance Life Insurance Company||95.01%|
|Sahara Life Insurance Company||89.97%|
|SBI Life Insurance Company||95.70%|
|Star Union Diaichi Life Insurance Company||94.08%|
|Tata AIA Life Insurance Company||94.47%|
|Shriram Life Insurance Company||65.66%|
|Edelweiss Tokio Life Insurance Company||86.10%|
|Future Generali Life Insurance Company||90.61%|
|HDFC Life Insurance Company||95.02%|
|Max Life Insurance Company||96.23%|
|ICICI Prudential Life Insurance Company||96.20%|
Claim settlement ratio is not the only tools that we need to keep in mind while choosing the right Term Insurance Company. We should also keep in mind the other points.
Claim RejectionDue to unfortunate reasons, there are chances that your claim will get rejected by the Insurance Company. But if a company has a high number of claims which gets rejected, its credibility decreases. Higher claim rejection points to low reliability of the insurance company.
Grievances SolvedDifferent Insurance companies have different grievance redressal systems through which they try to solve issues of a policyholder. Higher the number of grievances solved higher will be chance that even your issue will get addressed in a satisfying manner.
ProductsThe best insurance company will have a range of insurance products to choose from. These products should ideally suit the policyholder from different walks of lives. Limited number of products will have only a small set of features to choose from. This could sometimes lead the policyholder to compromise on basic requirements as a plan would not fulfill all the features that a policyholder is looking for. Some of the Term Insurance Products offered are as below: -
Aegon Life Insurance
With a high claim settlement ratio of more than 95%, Aegon Life Insurance desires to help people plan their future in the most secure manner.
Edeleweiss Tokio Life Insurance
Best known for its innovation and use of modern technology, Edeleweiss Tokio Life Insurance has bagged the award of "Rising Star Insurer" in the year 2013.
Future Generali Life Insurance
This company offers simple products which are easy to understand. It is best known for its huge range of financial products.
HDFC Standard Life Insurance
This insurer has one of the highest claim settlement ratios in the Financial year 2015-16. The insurance products offered by this company are as per the needs of their customers.
Max Life Insurance
This company aspires to be most esteemed life insurance company in the market. Max Life Insurance offers a number of benefits in their term insurance plans.
Some might think that buying a term insurance is unnecessarily locking an amount of money, which might not benefit in any manner. But, Term Insurance is as important as saving a large chunk of money for the future.
Term insurance brings peace of mind to the policyholder as this is a solid way to avoid future financial struggles of the dependents.