FAQs 179 views October 21, 2018

All the term insurance plans available in the market cater to customers irrespective of their nature and source of incomes provided they are guaranteed and fixed. This is important because term insurance acts as income replacement tool to make up for the loss of income in the event of the sudden demise of the customer, thus, financially securing the lives of his or her loved ones.

Many people buy those term insurance plans that come with lower premium rates. However, one must not consider only premium rates while buying term insurance. Factors like Claim Settlement Ratio (CSR) of the various insurance companies must not be ignored. Higher CSR indicates a greater probability of the insurer paying off death benefits to the nominee(s) of the insured. With employment in the defense sector being a risk profile, it is advisable to consider essential factors including CSR, amount of life cover available, premium rates, the extent of the policy period and the premium paying term so that the purpose of buying term insurance to secure your dependent(s) is not defeated.