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Term Insurance 28180 views January 3, 2020
A term insurance plan is bought as an assurance that if anything happens to you, your loved ones will remain financially safe. As a result, you need to choose the best term insurance plan with the best claim settlement ratio. If you do not buy your cover from an insurance company that has a high claim settlement ratio, your family may not receive the death benefit after your demise, and the entire purpose of buying term life insurance would lie defeated. In this article, we tell why it is important to choose a good term life policy from an insurer who has a high and healthy claim settlement ratio. Read on to get more information on this very crucial topic.
Table of Contents
A claim settlement ratio is the ratio of claims a life insurance company pays out for every 100 claim requests received. A good and well-functioning insurance provider will have a high claim settlement ratio while an insurer who struggles will have a lower ration. As a prospective term insurance buyer, you must always consider this figure before choosing your term life cover. A mistake here can cost your family dearly later on.
Issues faced when you don’t buy the best term insurance plan with best claim settlement ratio
When you buy a term life insurance plan from an insurance provider who has a low claim settlement ratio, the following issues may crop up:
The biggest and most obvious risk of buying a term plan from an insurer who has a low claim settlement ratio is the rejection of a claim. If the claim is not paid out, your family will struggle. To ensure no such thing happens, get the best term insurance plan with the best claim settlement ratio to be assured of giving your family the financial security you promised.
If the claim is rejected, your family may face tremendous financial hardships after you are gone. If you are the sole breadwinner of the family, they will have no source of income. You may have planned for the death benefit to clear your loans, pay for your child’s education, etc. In the absence of the death benefit, your family will not know where to get the money from. And you will not be around to help the situation either!
A term insurance claim will only be made after your death. If the claim is rejected, your family members may not know what to do and how to follow it up. You may have been able to do the running around, but sadly, you won’t be there to do any such job. This is why you should make all the arrangements to ensure no such thing happens and the claim is smoothly paid out to your nominees.
As you can see, these are some very pertinent problems that your young children, non-earning spouse or elderly parents can face if you die suddenly. So be aware of these and only get the best term insurance plan with best claim settlement ratio.
Here are some very good life insurance companies that have the highest claim records in the country and some of the term plans they offer:
Choose any of these good term insurance plans and be assured of giving your family the financial assurance they need. This holds true for the online as well as the offline term insurance plans.
The Final Word
Choosing a good life insurance company is important when buying a term plan. That is the first and most crucial step to ensure protection for your loved ones after you are gone. However, you also need to be honest and alert when buying the plan. Do not lie on the application form about your health or lifestyle habits. If you do so, even a good insurer with a high claim settlement ratio will reject the claim. Also, pay your premiums on time as no claim can be made on a lapsed policy. Do your bit, find the best term insurance plan with best claim settlement ratio and cover your life properly.