How To Pick The Best Life Insurance Company (Term Insurance)
Thinking That High CSR Means High Claim Chances !??
I will discuss the claim settlement ratios that are used in Advertising to Promote Life Insurance companies & explain why these ratios are misleading and how you can choose the best insurance company for your term life insurance needs.
What is claim settlement ratio?
Claim settlement ratio is the percentage of claims that are paid by an insurance company. For example, if a company has a claim settlement ratio of 98%, it means that 98 out of every 100 claims are paid.
# Now Why Claim settlement ratios are misleading
There Might Be The Cases In which Company can pass small money claims And Can Hang On then Big claims , Due to this Ofcourse Claim Ratio Will Be increased But company dont tell about the claims that has been hold ,To Show The Claim Ratio Value Big And Capture More Public Attention By Addressing High Ratio In Adverstiments .
A claim may be rejected for a number of reasons, such as:
- On Context Of Pre-Existing Diseases
- No Updation Of Nominee
- Hiding of Alcholic / Smoking / Tobacco Habits To company
- Policy Lapse
- Exclusions : Certain events or situations might be explicitly excluded from coverage, resulting in claim denial.
- The insured person committed fraud.
# Claim settlement ratios are not predictive
Claim settlement ratios are also not predictive. Just because a company has a high claim settlement ratio in one year does not mean that it will have a high claim settlement ratio in the future.
Click Here To See CSR Reports OF Top Companies : (FYI 2022-23))
How To Pick The Best Life Insurance Company (Term Insurance)
When choosing an insurance company, you should focus on the following factors:.
- Claims experience. The insurance company should have a good track record of paying claims. You can find out about the claims experience of an insurance company by looking at its claim settlement ratios and complaint data.
- Price: The insurance premium should be affordable for you.
- Assets Under Management ( AUM )
- Brand Value
- Backend By Big / Strong Institution
Means Financial strength – The insurance company should be financially strong enough to pay your claims. You can check the financial strength of an insurance company by looking at its ratings from rating agencies.
For Ex –
a) HDFC life insurance~ Backend By [ HDFC Bank ]
b) ICICI Prudential ~ Backend By[ ICICI Bank ]
c) Max Life ~ Backend By [ Axis Bank ]
d) TATA AIA Life Insurance [ TCS ]
- Choose 24Hours claim settlement (Now A days almost High Reputated Companies gives like ICICI Pru )
- Critical Illness + Rider Disability ( Read Hidden Terms & Conditions )
Things To Keep In Mind To Avoid Claim Rejection : 
i) Disclose every things While Medical Check Up.
Ex- Smoking, Drinking ,Drugs or other Health Causing Habits
ii) Keep Your Policy Book Stored Safe Online & Offline
iii) Do Health Check Up every 6 months And Attach Reports To File To Avoid Any Pre-Existing Diseases Isuess
iv) Understand Exclusions
Additional tips:
Here are some additional tips for choosing the best insurance company:
- Get quotes from multiple companies. This will help you compare prices and coverage options. For Better Comparsion Of All Companies You Can Visit Policy Bazar Website
- Read the policy details carefully before you sign it. Make sure you understand the terms and conditions of the policy.
- Ask questions. If you have any questions about the policy, don’t hesitate to ask the insurance agent.
Conclusion:
Claim settlement ratios are misleading and should not be the only factor you consider when choosing an insurance company. Focus on the financial strength, claims experience, and price of an insurance company when making your decision.