Buying a term plan? Buy from the green list
Claims settlement rate in FY18 is higher by policy count compared to the sum assured, perhaps because big-ticket early claims get rejected more often
In case of pure protection plans looking at the sum assured is important because a higher death claim settlement rate using this metric indicates that the insurer doesn’t discriminate between small- and big-value claims
We have always advised our readers to buy a term plan for their life insurance needs. A term plan is the cheapest form of life insurance as it only charges the cost of insurance and keeps out any investment benefits. While the basic filter of cost is important to see while sifting through the plans available in the market, it’s not sufficient. It is equally important to filter out insurers on the basis of their record of settling death claims.