Key factors to look for in an insurance plan:
- Total coverage
- Claim settlement ratio
- Liabilities covered under the policy
- Availability of Riders
- Maximum age allowed under the policy
The purpose of getting insurance is to take care of financial needs that may arise due to some unforeseen circumstances. Insurance ensures financial security for your future.
But how does one choose the best insurance policy?
There are hundreds of insurance providers in India offering a plethora of insurance policies to suit every need. You can follow the below checklist while shopping for insurance to help you make a good decision:
1. What is the maximum sum assured offered by the insurer? In the case of term insurance or health insurance, we would like to have the highest possible sum insured so that we can have better security for the future.
2. What kind of riders are available with the policy? Most insurance policies are basic policies. If you want additional coverage, there are riders available, that can be added to your policy. So, what kind of riders are available with this insurer is something that you have to check.
3. Claim Settlement Ratio: Claim settlement ratio is the number of claims processed and settled by the insurer in any given year. The higher the claim settlement ratio, the easier it is for the insured to file and receive the benefits of the plan.
4. Up to what age is insurance offered? This is another important criterion. Many policies give lifetime renewability which is a very good feature. Check for this on your policy.
Insurance is an important financial decision. Most insurance policies come with a considerable premium amount and hence it is important to choose the best one that can give you the best returns. The above checklist is just a simple one to consider. You must consider your personal needs and your family’s future financial needs too before getting a policy.