The life insurance industry is growing each day. People have understood the need for availing life insurance and many are coming forward to avail it. Life insurance plan makes sure that your family is financially stable even in your absence. If you are a sole breadwinner of the family, you can't miss availing life insurance.
As many people are availing life insurance, people who sell insurance too are on the rise. There are many insurance companies in the market, which offer life insurance plans. Now, the challenge is from which insurer to buy the right life insurance plan. In this blog, we will discuss how to choose the right insurer for life insurance.
1. An insurer with low customer complaints
You must select the insurer which has a less number of consumer complaints. Lesser the consumer complaints better the company. You have to go through the complaints posted against the insurance company. Even though all the complaints may not be genuine, you will get some idea on the company. It is advisable to go through their website press releases, news, and so on.
2. Claim settlement ratio
Claim settlement ratio in the case of a life insurer refers to the number of claims the insurance company has settled following the death of the policyholder. If a company has a claim settlement ratio of 70%, the insurance company has settled 70 claims out of every 100 claims made. It is always advisable to opt for the insurer which has got a high claim settlement ratio, as the probability of the settling your claim is high.
3. Lesser the claim settlement time
You must opt for the insurance company whose claim settlement ratio is high. The insurer should have settled at least 80% of the claims within 30 days of receiving the intimation.
4. Lapse ratio
Lapse ratio symbolizes the policies which are terminated because of failure to pay the premium. If the insurance lapses before the policyholder has paid sufficient premium, the insurance company will not be in a position to recover the early expenses.
It is always advisable to choose the insurance company with the lower lapse ratio, because higher lapse ratio is the symbol of mis-selling or poor servicing by the insurers.
5. Quality of the service
It is very important to consider the quality of the service provided by the insurance company, before availing an insurance policy. Know how the insurance company treats its customers. Make sure they answer all your queries, patiently. Learn if they make any effort to understand your financial needs.
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