Best Term Insurances: this article is all about giving the best of the best-term insurances available in the market and what would be the best for you. Term insurance is such insurance that has to be taken for a particular term or period. If the insured person dies during the said period, then the sum insured would be provided by the insurance company to the insured persons' family members.
Best Term InsurancesFactors involved while taking decision for the best term insurance:
Solvency factor2. The second factor comes from the solvency factor. The insurance's financial position should be very much powerful as there may be many claims that need to be paid off in case of low premiums also. Solvency Ratio here means that the Size of the Capital involved in the business is divided by the total risk involved in the business.
- The higher the solvency ratio, the better the organization is. The solvency ratio should be at least 1.5 as per the IRDA norms. Here LIC comes the last with nearly the minimum requirements. But the important thing to note is that solvency is to be checked, and the reputation would decide its business. So it is always advisable to be associated with those who have more credential reputation. For Example, LIC – It is having a very less Solvency rate, but the reputation of the LIC is the best, and so does the people trust the organization and invest in such schemes.
3. Policy Price:Now comes the factor, which would be called a monetary factor, which helps decide the plan to be adopted. The price matters, but the ultimate decision of what plan to choose should not be based on price. There are various other factors that need to be taken care of along with the price.
4. Time taken for claim settlement:IRDA every year provides the report on all the necessary matters for the decision-making, in which it distributes the time taken into three parts.
- Less than or Equal to 30 Days
- 31 to 90 Days
- More than 90 Days