Best Term Insurance Plans
One of the most common query from my readers is regarding Best Term Insurance India. In past i wrote an article on 5 Points to consider while buying Insurance Policy. In continuation of this post, recently i bought online term insurance plans for myself and thought of sharing my list of best term insurance plans based on my research, analysis & study. I will try to keep this post very simple and easy to understand. Before you buy term insurance plans it is important to do basic groundwork. I adopted theory of exclusion rather theory of inclusion for selection. I feel that theory of exclusion is more critical and analytical for selection. Its like evaluation of shortlisted plans on critical parameters in order of priority and reject the plans which does not fulfill the criterion or score low on critical parameters. This method is more scientific and widely accepted. I considered following criterion’s for shortlisting to select the best term insurance plans in same order of priority.
- Claim Settlement Ratio
My first & most critical criterion for shortlisting was Claim Settlement Ratio. I was not able to thought of any other criterion for selection of best term insurance plans. Based on the data released by IRDA, i shortlisted following 6 Term Insurance Providers with claim settlement ratio of more than 90% which is considered to be very good. Claim Settlement Ratio for each insurance provider is mentioned in the bracket.
- Online vs Offline Term Insurance Plans
Online term insurance plans are much cheaper compared to offline term insurance plans. Its a biggest misconception that online term insurance India lack in features and benefits. Let me assure you that features and benefits of both online and offline term insurance plans are same therefore i prefer online term insurance plan because of lower cost & convenience. As insurance provider incur low cost on online term insurance India therefore pass the benefit of low premium to customers. As all six shortlisted insurance providers offer online term insurance plans therefore there was no exclusion on 2nd parameter.
- Market Share of Insurance Provider
In my opinion, Market Share shows the confidence level of a customer in particular company. Same holds true for Life Insurance. India Brand Equity Foundation release Market Share of major insurance providers based on total life insurance premium collected.
- Premium of Term Insurance Plans
In term insurance India, the Return on Investment is NIL and it is purely a life cover therefore premium is one of the critical consideration before you buy term insurance plans. I will not quote any no’s because premium is variable and is dependent on the age & other lifestyle habits of a person. I am a non-smoker and follow healthy lifestyle habits therefore i will conclude based on premium quote received by me. Any arbitrary example may bias the readers. On this parameter i dropped LIC’s e-Term Plan and ICICI Pru iProtect Term Insurance Plan from my list as these are 2 costliest online term insurance plans.
Source: http://www.nitinbhatia.in/personal-finance/term-insurance-plans/
