Buying Term Insurance from the Right Insurer? Here's What You Need to Know
The uncertainties and pace of life in India are increasing day by day, because of which more people now consider having a life insurance cover no less than a necessity. For them all, term insurance is something that can give a life cover to deal with the loss of a loved one, at least at the financial front. A term plan is one of the most straightforward and most advantageous forms of a life insurance policy available online and offline, with benefits like financial security for the future, large cover at affordable premiums, additional riders, and many others. If you want to ensure your family won’t suffer from financial crunch in your absence, you must buy a term plan. However, there is also a complicated side to it.
To meet the increasing demand for term insurance plans, you can easily find several insurers offering plans to cater to the different needs of people. Because of this, it often becomes difficult to choose one of those insurers. If you have made your mind to buy a term plan but unable to select the right insurance company, keep these three things in mind:
1. Check the Insurer’s Reputation
As said above, you can easily find a good number of small and big life insurance companies in India offering term plans at exciting offers. Alongside, there are online term insurance comparison portals to further the competition. Buying a term plan from an insurer is more like trusting him to get the prospective benefits and paying him the premium.
It is; therefore, essential that you know well about the insurance company you are choosing. For this, you need to research about how long an insurance company has been in business, the type of insurance plans it sells, its mission, financial strength, and user reviews.
Put, you are advised not to buy term insurance from an insurer who is unable to answer all your queries and doubts before selling the plans to you. Just like the other purchase decisions you make;you must feel comfortable with the decision to choose an insurer.
2. Look for the Claim Settlement Ratio
Doing this is crucial before you step on to look at the perks and benefits of a term plan. The ultimate purpose for which you buy a term plan is to ensure your family will get its benefits without facing any constraint.
You can rest assured about the financial stability of your family member by knowing about at an insurer’s claim settlement ratio for term plans online or through an agent. Take the case of Max Life Insurance, which is known amongst its policyholders for its high claim settlement ratio of above ninety-eight percent. The higher this ratio is, the better.
3. Consider the Premium Payable
Indeed, you cannot put your life within a price bracket as it is invaluable. However, it would help if you were good at dealing with numbers while buying term insurance. While looking at the premium of online life insurance policy, you would feel the cost is nearly similar no matter which insurer you choose. Still, it would help if you kept in mind that a term plan’s premium is not the only factor to be considered, even though it is crucial.
You may find some insurance companies offering term plans at low rates as they are new in the Indian insurance market. Similarly, a low-premium policy may not be offering the coverage you expect. So, it is advisable that you make the final decision based on what all makes the most sense to you.
There will be no financial security blanket around your family in your absence unless you make it while you are alive. Buying a term plan is one way to weave that blanket. Thus, it is imperative that you choose an insurer carefully.