As an adult, it is essential that you have some form of financial security, not only for you but your family as well. Life insurance is by far, the easiest and the most comprehensive financial security cover you can have. When you have a life cover, you will not lose sleep worrying about the financial safety of your loved ones in case of your unexpected demise. Moreover, you can also reduce your tax liability with the policy.
As curtains draw on 2018; therefore, it is crucial that you buy a life insurance cover in order to save taxes for the current financial year. With an array of online insurance plans available today, it is possible for you to compare them and make a well-informed decision. To help, here are certain factors you need to consider before making the final decision.
Claim Settlement Ratio
The CSR is a crucial insurance-related term that you need to review and understand before purchasing an insurance plan carefully. It is the ratio at which insurance companies settle the claims filed by the dependents of the insured. For example, if an insurer has a claim settlement ratio of 88%, it means that it settles 88 claims out of every 100 claims received. Therefore, the higher the claim settlement ratio, better it is for the insured.
Premium Waiver options
Reputable insurers including Max Life Insurance offer the Premium Waiver benefit, under which all future premium payments are renounced. This happens in cases where a policyholder suffers an accident, death or disability and is not able to pay further premiums due to loss of income.
If you meet with an accident and suffer disability due to the same, the disability benefit of the insurance plan will provide for the loss of income caused because of your injury. In such a case, you will not only receive payments to cover the actual expense but will also get a certain amount to cover the loss of income. With the disability benefit; therefore, you can meet the financial obligations and maintain your lifestyle.
Policyholders often have doubts or grievances regarding the policy they have purchased. When the insured convey their grievances to the insurance company, the latter is obliged to offer a solution to the same. This functionality can be expressed as a ratio of the grievances solved and in turn, speak volumes about the company’s efficiency in handling customer queries. For example, if the ratio is 98%, it implies that the company has resolved 98 complaints out of every 100 received.
It is the maximum coverage that the insurance company would provide for a specific period. Therefore, the higher the maximum coverage, the better it is for you. As your life goals change, you can also increase the cover amount beyond the maximum coverage provided by the insurer, albeit with an additional cost.
Every policyholder is expected to pay the premium amount on time. In case the payment is delayed, the insurance companies offer an additional time period to the insured to pay the premium without incurring any extra charge. Even if you pay the premium within the grace period, your policy benefits will continue to function normally.
Understanding the terms and conditions of an insurance plan is the first step towards choosing the right policy. To do that, you can go for an online insurance comparison, which will help you evaluate the merits of an insurance plan hassle-free. While a high claim settlement ratio is desirable, the insurers with a high grievance redressal ratio too become an obvious choice. Further, the additional rider options make the insurance plan more comprehensive and customised according to your goals.