Life Insurance policies have been part of Indian households for decades now. Individuals opt for such policies to secure the future of their families.
And since the arrival of the Covid pandemic in 2020, one is forced to take a relook at essentials, including life insurance, seriously.
If you are planning to buy a life insurance policy, check these key things that you must remember.
1. Track record of the insurer
Before choosing a life insurance policy, one should always check if the company give the claim amount on time or is there a bad customer service experience.
When comparing various insurance companies and their policies, it is important to conduct thorough research on the insurer’s reputation.
2. Claim Settlement Ratio (CSR)
You should also check the Claim Settlement Ratio (CSR) of the life insurance company. It is a ratio of the number of claims paid to customers by the insurance company to the total claims received by the company. The higher, the better.
The Insurance Regulatory and Development Authority of India (IRDA) publishes the CSR for life Insurance companies each year.
Claim Settlement Ratio = (Total claims approved and paid)/(Total claims received by the insurer)x 100
3. Company’s strength
According to the survey conducted by the Life Insurance Council, some of the key barriers to people investing in insurance are mistrust and unethical practices used for sales.
One should take feedback from financial savvy friends and also read online reviews to make an informed choice.
4. Consumer focus
Insurance companies provide several plans which sometimes confuse people. Therefore, a company should provide better communication to make them feel secure with their policy purchase.
It is crucial that the customer is able to differentiate between his/her real needs from the various offers by the insurance companies.
5. Service capability
Service capability includes explaining important steps in the claim process, providing the right policy for the consumer, giving out maximum information possible to assist the consumer, etc. As a consumer, it is crucial to evaluate these parameters to make an informed and unbiased decision.