Term Insurance Companies

As in India, the life insurance market is flooded with multiple insurance companies that have come up with a sack full of term insurance products with different variants to cater to the needs of its customers, it has become difficult for a policy-seeker to find a good life insurance company that can suit his purposes well. But while selecting a company, if you keep in mind certain parameters, you won’t be facing problems. To know about these potential useful parameters, have a look at the below mentioned. 

Claim Settlement Ratio – We buy a term insurance plan so that it can stand beside us in our most needed time. For that, the claim settlement ratio of the company plays a pivotal role as it depicts the credibility of the company. Usually, the higher the claim settlement ratio is, the more reliable the company is. Apart from the selected company’s official website, you can also get the claim settlement ratio of the company for that particular financial year in the Annual Report of IRDAI. 

Solvency Ratio – A solvency ratio is a key metric that is used to measure a company’s ability to meet its long-term debt obligations. The solvency ratio of an insurance company is the size of its capital relative to all risks it has taken. Usually, if the solvency ratio of a company is on the higher side, it highlights the fact that the company has the ability to handle any financial crisis and it can pay off the lump sum claim amount of its consumers. 

Background of the Company – It is very important to know in detail the background of the insurance company, its history, and the shareholders of the company. If the company shares a rich and reputed background, it is likely that it has the capacity to hold on to any catastrophic situation. Then, the policy-seekers can also rely on the insurer without any anxiety.

Market Share – The IRDAI Annual Report depicts the premium underwritten by an insurance company for that particular financial year and this premium amount symbolizes the company’s share in the market and it also explicitly talks about in which sector the company has invested what amount of money. The higher the amount is, the stronger the insurer is. 

Number of Plans – If your selected company has matched all the criteria but it does not have enough term plans, then that insurer would be of no use. A bunch of variants always indicates that you can have multiple options to choose from according to your convenience. So, select that life insurer that has enough term plans to offer.

Distribution Network – It is one of the important factors while choosing a suitable life insurance company for term plans. The company should have a good distribution network including official branches, agents, partner banks, etc. so that it would be easily reachable.

Customer Service – The customer service portal of the insurance company must be well-connected with its consumers. So that, whenever you need any kind of services, you can smoothly reach out to the company.

Easy Claim Process – The claim process is of the basic criteria for selecting a life insurer because in case of an unfortunate incident you should not and cannot avail of a complex and long claim settlement process. It should be customer-friendly and smooth.

Transparent Policies – The company needs to have transparent and easy-to-understand insurance products that will not have any hidden costs. The product brochure must be written in easy, placid, and lucid language so that anyone can understand it without any trouble. Otherwise, you may fall into an unwanted situation in the future.