Top 5 Term Insurance Plans in India

As the term insurance is a plain insurance policy without any embellishments, it is very important to know the yardstick to measure one policy over the other. There are two basic standards that can help you to cherry-pick the best insurance company:

1.       Compare the Claim Settlement Ratio of the insurance provider

2.       Compare the premium offered

My previous editorial on Term Insurance- A necessity!, can help you to understand the fundamentals of Term Insurance policy and how it is better than other insurance plans. In this article, I present you 5 famous term insurance plans offered by different insurance providers in India. Let us first understand the meaning and significance of Claim Settlement Ratio before you zero in a term insurance plan.

Claim Settlement Ratio: As we all know, insurance is a life protection tool. In case of unfortunate demise of the policy holder, the family members/ nominee approach the insurance company to claim the sum assured. As an expectation, the insurance company, after completing the pre-requisites, should hand over the claim to the family of the deceased. But it does not happen always. Insurance regulator IRDA’s annual reports for 2012-13 reveal that of the total 23 private life insurers, only five have a claim-settlement ratio of over 90% (in terms of number of policies). The figure tells you that many insurers are stingy when it comes to passing on the benefits to nominees.

The claim settlements ratio of an insurance company indicates the percentage of claims that have been approved out of total claims that are unsettled. Higher claim settlements ratio indicates that a life insurance company is making the payments when they are outstanding, in this case a premature death.

It is very important for the insurance buyers especially for those who are availing the term plans to verify the claim settlement ratio of a company before the commencement of their policy.

Let us now explore the Term insurance plans offered by different insurance providers. Let us assume that Mr. Arun Grover, a 30 years old healthy male who needs a life cover of Rs.1 crore is looking for a policy. Let us look into the policy offered by each insurance company and compare the annual premiums that Arun Grover needs to pay for a life cover of Rs.1 crores. Please refer to my article on Term Insurance-A necessity to know the perfect life cover that you need. 

You always strive to give your family the best in life and have ensured they fulfill their dreams. However, in your heart, you always feel insecure about their future in your absence. Will your family be able to sustain the same lifestyle even in your absence? Please think and opt for the best term plan today. It is never too late!