Life insurance plans are now an investment choice that you cannot skip. With our lives becoming hectic and the stress increasing, it is wise to have a life insurance plan as it can help alleviate some pressure off your family if you meet with an unfortunate incident. Life insurance plans provide you with a plethora of benefits and if you are someone, who is young and earning a decent income, then you can make the most out of the life insurance plans as you have an added benefit of time on your side and lower rates of premium as well.
Here are some of the parameters that you can use to evaluate the best life insurance plans in India:
- Claim settlement ratio: This is an important factor as it indicates how willing the company is in settling the claims raised and how much it cares about its customer base. Any company with a settlement ratio of more than 95% is ideal for you. This will help filter out the companies that have low settlement ratios in the first comparison itself.
- Reliability of the company: Life insurance plans are an important deal. You should not make choices that you may regret later on. Therefore, you should check when the company was established, read customer feedback, read about their mechanisms that deal with grievances, the number of branches that they have across the country, awards they have won, etc.
- Ease of buying: Insurance companies in India usually offer their policies via offline and online mediums. In addition to this, most consumers of life insurance plans prefer purchasing the policies online because of the convenience that it provides. One important point to note is that remember to check that your insurance service provider is in the capacity to provide you with an option to renew your policy online.
- Ease of premium payment: With the use of technology, the premium payments have been moved to an online medium rather than the traditional methods wherein the insured person or their agent had to visit the insurer’s branch in order to pay the premium. It is imperative that you check the various payment channels the insurance service provider is offering to you.
- Average time taken by the company to settle its claims: The basic process for claims is that, once the nominee raises the claim and submits the relevant documents, it takes a couple of days for verification and later on the once the claim is approved, the funds are transferred to your bank account quickly.
- Payouts offered and the terms and conditions attached: Various life insurance companies offer several plans that are catered to people with different needs. It is important to understand your needs before you invest your money in a life insurance policy or any such policy. It is also imperative for you to read the various terms and conditions that are attached to the policy in order to learn and compare the policy alternatives and choose the best alternative for you.
Hence, you can use the above mentioned parameters as a reference and extract the best policy for you.