Ultimate
Guide to Compare Term Insurance And Choose the Best Policy
When it comes to the security of your loved
ones, nothing beats the assurance of a good term insurance policy. But with a
sea of policies out there, how do you fish out the one that's right for you?
Worry not because term plan comparison is not as complex as decoding rocket science. Here's a simplified
guide to navigating through the maze and coming out with the policy that fits
you like a glove.
Comparing Insurers - How to decide the best
term insurance plan company for you
Choosing the best term insurance plan company
isn't just about picking the one with the flashiest ads. It's about digging
into their past, understanding their present, and looking at their potential to
fulfil promises in the future.
Track Record
First things first, how long have they been
around, and how have they fared? A company with a solid track record is like a
seasoned actor delivering consistently good performances – it’s someone you can
rely on.
Customer reviews
Nothing beats the recommendation and opinion
of the people who have been on the same journey before. Online reviews on
insurers’ websites and third-party websites make it really easy to understand
the company. And of course, word of mouth is also an option!
Ask your friends and family too, about what
they think of the insurer. Look at an overall customer review score of 4 out of
5 or somesuch.
Pro-tip: While it is good to know what others
think, it is important to do your own research objectively. Don’t miss the
other parameters mentioned above.
Claim Settlement Ratio
Next up is the claim settlement ratio, a
figure that represents the percentage of claims the insurer has paid out. Think
of it as the batting average for insurance companies – the higher, the better.
Amount Settlement Ratio
Don’t stop there; also look at the amount
settlement ratio. This tells you whether the insurer is just as willing to
settle large claims as they are smaller ones.
Scale of Business
A company's scale of business can indicate its
stability and capability to handle claims – the bigger their scale, the more
reliable they can be.
Operational Efficiency and Total
Complaints Received
Lastly, consider how efficiently they operate
and how they handle complaints – because customer service can make all the
difference when you need support the most.
Solvency Ratio
You always want to be sure that in a big
downturn event, the insurer is capable of paying the sum assured, right? Well,
the solvency ratio answers just that. It is the insurer’s financial capacity to
meet its liabilities. But the interesting part is, you don’t need to worry
about your insurer’s solvency ratio. It's something that’s taken care of by the
IRDAI.
How to decide which term insurance policy has
the better features and add ons?
Once you have shortlisted companies, it's time
to compare term insurance and the policies offered. Look beyond the basic
coverage; delve into what each policy offers that can make life easier for you
or your family when you need the insurance to kick in.
Critical Illness Benefit
Is a battle with a critical illness covered?
This benefit can be a game-changer, offering financial support when medical bills
start to pile up.
Zero
Cost Option
The zero-cost option is like a
get-out-of-jail-free card, allowing you to back out and recover your premiums
if you decide the policy isn’t for you anymore.
Accidental Death Benefit
If the stage of life has more stunts than a
blockbuster movie, an accidental death benefit provides that extra financial
stability and protection to your family.
Terminal Illness Benefit
Getting diagnosed with a terminal illness is
tough, but some policies ease the burden by paying out the sum assured early,
giving you financial support when you need it most.
Top-Up Cover
Life changes, and so can your insurance needs.
Look for policies that allow you to increase the cover amount, so you are
always adequately insured.
Waiver of Premium
If life throws a curveball and you can’t work
due to disability or critical illness, a waiver of premium ensures your policy
continues without you having to pay for it.
Increasing Cover With Inflation
With inflation, the value of money decreases
over time. Some policies counteract this by automatically increasing your cover
amount, keeping your insurance in step with the times.
At the end of the day, a term plan comparison
comes down to which policy offers the best parachute for your skydiving adventure
in life. It's about balancing the premiums with the benefits, the policy term
with the sum assured, and the company's reliability with the policy's flexibility. It
might seem daunting, but it's just about taking it one step at a time. Compare,
contrast, and choose the policy that promises peace of mind, not just for you,
but for your loved ones too. Because in the grand play of life, ensuring your
family’s financial well-being might just be the best role you ever play.