Monday 20 January 2014

// // Leave a Comment

Term Insurance Plans - Best way to channelize your Investments

Ever heard of “Life is too short to have any regrets”. Well it is so true with investments. If not well planned and not well pondered upon can be a terrible decision made with no time for regrets. So it is always better to have your investments well planned and channelized.



There are no best financial products be it mutual funds or insurance. They may be best today but not yield the same results when you need of it. A few pointers for a smooth sail in term insurance plan.

·         Claim Settlement Ratio: The most important factor for selecting any insurance policy including term plan is claim settlement ratio. The main purpose of buying a life insurance is to secure our family financially with as an assured amount is expected. But for some reason if it gets denied then the whole purpose is in vain. So it is always better to have a thorough check then be sorry.

How to reduce chances of claim rejection?
There are 90% chances that you have called the agent for buying your term plan. But allow the agent to play the checker alone. Do double-check to each and every form that you fill. Do not hide about your vices, be open about the fact that you drink or smoke. Also disclose your medical history if any, even if you feel it’s small. Mention about your other insurance policies with other companies.

If you take care of the following points there is very less possibility that your claim may get denied.

·         Reputation of the company: There is no defined pattern as to decide over the reputation of a company. However it all depends on two factors being the financial health and your past experience. Therefore it is a very subjective agenda and changes time to time but still can be considered to increase your confidence. Or the other way round to think of it can be, that you have 12 companies offering good insurance policies but you aren’t sure of two of them, so you can eliminate two from your list of preference.


·         Low Premium: A lot of people think this criterion of least importance however it is of utmost importance. This should be considered once you have shortlisted policies based on the above two mentioned pointers. Online term plan have become a huge hit with insurance buyers in the past two years, with an easy access to many finance tools such as term insurancepremium calculator. It seems that every 18 minutes an online term plan is bought in the country. The seven life insurance companies that offer such term plans have issued more than 14,500 policies with a combined cover of roughly Rs 9,100 crore, over a span of six months. For an underinsured country like India the large cover offered by online plans is good news. 


0 comments:

Post a Comment