When most people look at choosing a term insurance plan, the first thing they would want to compare is the price. Yes,
1. Claim Settlement Ratio:
This ratio shows the percentage of claims paid out of the total filed in the year. The higher the ratio, the easier it’ll be for your dependents to claim the insurance in your absence and continue their lives comfortably.
The purpose of term life insurance is to secure your dependents’ future. The higher the claims settlement ratio, the better your chances of ensuring your family’s future is secure.
While claims settlement ratio is important, what’s equally important is to check the total number of claims that were settled by the insurer. Only if a substantial number of claims are settled does the Claim Settlement Ratio acquire
Fact: ICICI Prudential Life has settled 10,938 claims out of the 11,034 claims received in the last financial year.
2. Solvency Ratio:
Solvency ratio tells you whether the insurer you choose will be financially capable of settling your claim if the need arises. IRDAI mandates that every life insurer should maintain a solvency ratio of at least 1.5.
Fact: ICICI Prudential Life has a solvency ratio of 2.15^
In case of a natural disaster, a life insurer will receive a large number of claims in a very short span of time. Since
3. Critical Illness Cover:
A term insurance plan secures your family’s financial future in case of an unfortunate event. But
Fact: Critical illness covers with term insurance plans are very popular. One in three of our customers also
4. Additional Covers Available:
All term insurance plans will provide a basic life cover. If financial security of your family is your goal then you must make sure that you choose a term insurance plan with comprehensive
- Waiver of Premium: Life insurance cover will continue without the need to pay the premium in case of permanent disability.
- Accidental Death: This benefit increases the sum assured to be paid to your family members in case death occurs due to an accident. Most good term insurance plans will offer you an accidental death cover equal to the base sum assured.
- Income Benefit: Some term insurance plans allow your family members to receive a regular income from the plan rather than a lump sum amount. This benefit comes in handy if you want your term insurance plan to provide monthly income to your family in your absence.
Some other benefits you can look at are terminal illness benefit, flexibility to increase sum assured at major milestones & increasing monthly income benefit.
Fact: When comparing term insurance plans, check how many of the above features are available within the base plan itself.
Once you have evaluated term insurance plans based on the above parameters and narrowed your choices down to a few, then you can look at
Fact: If cost is a major area of concern, then you can always select
|Points to remember about our Term Plan|
|Claim Settlement Ratio of 98.6%*|
|Solvency Ratio of 2.15^|
|Critical Illness Cover for 34 critical illnesses|
|Accidental Death Cover up to
100% of base sum assured
|Waiver of Premium on physical disability|
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*Claim statistics are for FY 2017-18 and is computed basis individual claims settled over total individual claims for the financial year. For details, refer to Public Disclosures in our Website.
^As per IRDAI Annual Report 2018-19.