Things to check for Term Insurance Company before buying Term Insurance

POSTED BY puneetrawal ON April 10, 2014 11:45 am COMMENTS (13)

Hi all,

I am sure, this question must have been asked many times in this forum but I am unable to find the link to the discussion.

What are key points to check on the insurer’s company before buying a Term Insurance other than Claim Ratio?

Please advise.

13 replies on this article “Things to check for Term Insurance Company before buying Term Insurance”

  1. puneetrawal says:

    Thanks Ashal. Will. Insider this before buying.

  2. ashalanshu says:

    Dear Puneet, the basic sum assured and mly income ‘ll come to family only if the claim is sanctioned post your death. I’m not saying, Max ‘ll not pay claim. I’m merely suggesting a possibility. Now what is the prem. you w’d have to pay in basic sum assured and add on mly income cover? We can reach to a conclusion mathematically. 🙂

    Thanks

    Ashal

  3. puneetrawal says:

    Spot on 🙂 !! Thanks for valuable input.

    Puneet

  4. SIVA PRASAD RAVIRALA says:

    Dear Puneet,

    You will get nominal return in insurance plans, say 5-7%, whereas you will get minimum 15% in mutual funds in long term, if you invest same amount. Dont forget to take term insurance plan before starting investing in mutual funds.

  5. puneetrawal says:

    Thanks Siva! for your active involvement in this. I completely agree your point.

    Out of curiosity, are you feeling any smell into these kinds of plans? What problem do you foresee if one opt this kind of insurance cum return plan?

    Thanks, Puneet

  6. SIVA PRASAD RAVIRALA says:

    If you are getting some thing in return means it is not pure insurance. It is investment cum insurance plan. These type of plans neither suit for insurance nor for investment. Please think what is the purpose of insurance? In investment point of view, do not think how much money I am getting back, instead think how much return (%) I am getting. If you calculate return, you will realise that you will get very less in Insurance cum Investment plans. So invest in pure Investment plans and buy pure Insurance plan.
    Hope I am clear.

    SIVA

  7. puneetrawal says:

    Hi Ashal,

    Why I shall not opt for it if the nominee gets 40k per month for another 10 years even after sum assured is paid at a nominal premium? I am not able to find out any reasons fir not opting for it. If you have any specific finding, pl do advise.

    Thanks for your help.

    Thanks, Puneet

  8. ashalanshu says:

    Dear Punnet, why are you opting Mly Income option policy? why are you not opting plain vanilla term cover?

    Thanks

    Ashal

  9. puneetrawal says:

    Thanks Ashal, you are awesome! I am planning to take Max Life’s online Term Plan “Life Cover Plus Monthly Income”.

    Pl suggest if it is okay to buy since their Claim Ratio is approx 94% and they have good reputation as well. I am not sure about their JV partner’s reputation.

    Please advise.

    Thanks
    Puneet

  10. ashalanshu says:

    Dear Puneet, the points of selection by you are good. Please go ahead and select the insurer of your choice.

    Thanks

    Ashal

  11. ashalanshu says:

    Dear Puneet, as per your own understanding, what can be those key points?

    Thanks

    Ashal

    1. puneetrawal says:

      My checklist says:

      1. Claim Ratio
      2. Company’s Joint venture and their background
      3. Nature of complaint against insurer in IRDA
      4. Medical Test
      5. TPA Status (Internal/External)
      6. Claim process
      7. Premium annually
      8. Any additional benefit with Sum assured like Max life is claiming to provide on a nominal increase in premium, claim is to provide 40k per month for another 10 years along with SA.

      This is what I could list down, was checking if I am missing anything.

  12. manikambh says:

    Trust and brand factor.

    Personally My feeling is all the insurance providers are backed by IRDA. And the money invested is not coming back to me so I see who is providing the same cover with less premium.

    If you declare correctly while taking up policy and get your medicals done then it should not be a problem for anybody to claim the amount. Also if claim comes before 1-3 years then there might be some reluctance shown but otherwise it should be cool.

    Thanks

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