Claim Settlement Ratios for Top Term Insurance in India
A term insurance plan is the simplest form of life insurance. It gives you the promise of payment of a fixed benefit in case of death during the term of the plan. Term insurance provides coverage for premature death of the breadwinner of the family.
When you invest in a term insurance plan, you are secured that if anything happens to you, your family will not suffer financially as the plan would give them a financial corpus to tide over the difficulties. Given the security that term plans give, they are considered to be the most important investment which you can do for your family’s security.
Features of term insurance plans:
Term insurance plans are quite different from other types of life insurance plans. They have some unique features which include the following –
- Since term plans are the cheapest, you can choose high levels of coverage without worrying about the premium
- There is no limit on the sum assured amount that you can choose.
- Term plans offer long coverage durations
- There is usually no maturity benefit under term plans
- You can opt for different types of term insurance plans as the plans are available in the following variants-
- Increasing term insurance – under this variant the sum assured increases every year
- Decreasing term insurance – under this variant the sum assured decreases every year
- Return of premium plans – under this variant the premiums paid are returned back if the plan matures
- Level term insurance – under this variant the sum assured remains the same throughout the policy period
- Term insurance plans do not earn a bonus. You get the sum assured only as a death benefit.
Term insurance claim settlement ratio
Before buying a plan you should always check the term insurance claim settlement ratio. The ratio shows the percentage of claims that the insurance company has paid vis-à-vis the total claims which were made upon it. It is calculated as follows –
Claim settlement ratio = Number of claims settled / total number of claims made * 100
The ratio is represented as a percentage and the higher the term insurance claim settlement ratio is, the better would be the plan. This is because a high ratio improves the chances of your term insurance claims being settled. Different insurance companies have different term insurance claim settlement ratios. You should, therefore, compare the ratios when comparing term insurance plans so that you can increase the chances of your claim settlements.
Best term insurance plans in India
There are a number of Term Insurance Plans available in the market and choosing the best plan whose term insurance claim settlement ratio is also high might prove difficult. So, to make your work easier, here is a list of some of the best term insurance plans available in the market which also boast of having a high claim settlement ratio –
- LIC’s Jeevan Amar Plan:
LIC boasts of having the highest claim settlement ratio in the industry and its term insurance plans are among the best. Here are the salient features of Jeevan Amar plan –
- Aegon Life iTerm Insurance Plan
This is an online term plan which is offered by Aegon. The plan has the following salient features –
- HDFC Life Click 2 Protect 3D Plus Plan
This is quite a comprehensive term insurance plan which has the following salient features –
- TATA AIA Life Sampoorna Raksha Plan
This plan also offers you flexibility in choosing your coverage. It has the following features –
- ICICI Pru iProtect Smart Plan
You can buy this plan online and the plan has the below-mentioned features–
- The premiums are extremely affordable
- You can enjoy coverage till 99 years of age
- Optional critical illness rider is available which covers you against 34 major illnesses
Important parameters of ICICI Pru iProtect Smart Plan
||18 to 65 years
||5 years to whole life
||Depends on the minimum premium which is INR 2400
|Term insurance claim settlement ratio for Financial Year 2017-18
Here is a complete list of life insurance companies currently operating in India along with their published Claim Settlement Ratios for the financial year 2017-18 –
|Name of the life insurer
||Claim Settlement Ratio
|Life Insurance Corporation of India
|HDFC Life Insurance Company Limited
|Max Life Insurance Company Limited
|ICICI Prudential Life Insurance Company Limited
|Kotak Mahindra Life Insurance Company Limited
|Aditya Birla SunLife Insurance Company Limited
|TATA AIA Life Insurance Company Limited
|SBI Life Insurance Company Limited
|Exide Life Insurance Company Limited
|Bajaj Allianz Life Insurance Company Limited
|PNB MetLife India Insurance Company Limited
|Reliance Nippon Life Insurance Company Limited
|Aviva Life Insurance Company Limited
|Sahara India Life Insurance Company Limited
|Shriram Life Insurance Company Limited
|Bharti AXA Life Insurance Company Limited
|Future Generali India Life Insurance Company Limited
|IDBI Federal Life Insurance Company Limited
|Canara HSBC OBC Life Insurance Company Limited
|Aegon Life Insurance Company Limited
|DHFL Pramerica Life Insurance Company Limited
|Star Union Dai-ichi Life Insurance Company Limited
|IndiaFirst Life Insurance Company Limited
|Edelweiss Tokio Life Insurance Company Limited
You can choose any of the above-mentioned term insurance plans and you would be assured of high claim settlement ratios. While the plan would give you a comprehensive scope of coverage, the high term plan claim settlement ratio would ensure that the claims are settled easily. So, invest in the best term insurance plan and gift financial security to your family.
Frequently Asked Questions:
- Is there any benefit that I can get if I surrender my policy?
No, there is no surrender benefit under term insurance plans.
- How can I buy the best term insurance plan?
To buy the best term insurance plan, you can visit www.turtlemint.com. Turtlemint is an online platform which is tied up with all the leading life insurance companies. You can visit Turtlemint to compare and find the best term insurance plan for your coverage needs which also has a high claim settlement ratio. To buy a term plan through Turtlemint, follow these steps –
- Visit the website and choose ‘Life’
- Then choose ‘Term Life Plans’
- You would then have to provide your details like your gender, marital status, birth date, annual income, smoking preference, the sum assured that you want and your contact details
- You would then be shown a list of the best term plans
- You can compare the plans and buy the best one.
- What type of premium discounts are allowed under term insurance plans?
Term plans offer premium discounts if you don’t smoke and if you choose a high sum assured level. Some plans also allow a discount for paying the premiums annually.