How to choose an insurance term plan


How to choose an insurance term plan?




Life insurance is generally bought to take care of the financial needs of your dependents. Hence, it is important to choose your insurer with utmost care. Before selecting a policy, you should not only check the annual premium and the sum assured, but should also check for the claim settlement ratio of the insurance provider to know the past record of performance as to settlement of claims. So, let us understand the concept of Claim Settlement Ratio.

Claim Settlement ratio: The Claim settlement ratio indicates the proportion of claims that have been honored out of total claims that are outstanding. Higher claim settlements ratio, better it is because it indicates that a Life Insurance company is making the payments when they fall due.

So as to distinguish the contemporary Term Plan from the traditional pure risk cover plan, the insurance providers are offering several flexibilities to the Term Plan.

Some of the flexibilities and add-ons offered by the insurance providers are:

Flexibility to opt for a single life or joint life policy

The flexibility to choose the premium payment frequency i.e. quarterly/half-yearly/annual.

Choose your sum assured and plan option

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BB Expert