Things To Keep In Mind Before Buying A Policy
Decided To Buy Life Insurance. Also Choose Insurance From A Reputable Company That Will Suit Your Needs. But Just At This Time A Neighbor Of Yours Came Forward As An Advocate. He said, “Why Are You Taking It? Such And Such Company’s Insurance Will Give You The Same Benefits But The Premiums Are Much Lower!” Hearing This, Your Eyes Lit Up. He Ran To That Company. And Then The Tragic Tragedy Happened.
The Neighbor Died Suddenly. And You Can Feel That The Less Money Is The Lure Of The Premium And Now Running To Recover The Money From The Insurance Company, How The Shoes Are Deteriorating!
Just What? It Is Also Important To Verify The Financial Status Of The Organization. We Buy Insurance And Stay Safe, But if The Insurance Company Goes Bad, We Don’t Have To Go Down The Road of Buying Life Insurance And Then Buying Another Insurance To Save That Money!
Yes There May Be Variation In The Premiums Of Different Companies For The Same Insurance. So You Must See It. But First See-
Claim Settlement Ratio
Before Buying Insurance From The Company, See How Willing The Company Is To Settle Your Claim. It Is Very Important. Because Not All Organizations Are Equally interested in Making Money. And this is why the Claim Settlement Ratio Varies. It Is Calculated In Percentage. This Figure Calculates The Percentage Of Claims an Insurance Company Accepts. It Is Advisable To Buy Insurance From The Company Which Has A Higher Ratio. This Account Can Be Found By Searching The Net. Or Go To Irda.gov.in To Find This Ratio By Organization.
Keep One More Thing In Mind. Deciding On This Ratio Is A Bit Difficult For New Companies. The Claim Of The New Company Should Not Be So Much. So Taking Decisions Based On This Ratio May Not Be Reasonable For New Firms.
Read More – Different types of life insurance
See Solvency Ratio
You Bought Insurance, But The Company’s Situation Was Such That They Couldn’t Refund Your Money If Needed. In The Case of Banks Too, We Used To Think There is No Problem In Keeping Money In Banks. But in our Recent Experience, Banks Are Facing Problems In Face Of Withdrawal Demand. In Our Country, However, In Almost Every Case, Banks Have Merged With Other Banks Due To Government Intervention. Savers Survived But In Some Cases Had To Wait Several Days To Get The Money.
Insurance Companies Are Also Not Exempt From This Risk. Although the Regulatory Agency IRDA And The Finance Ministry Are Keeping a close Eye On These Companies, There Is No Semblance Of Caution. Solvency Ratio Will Tell You About The Financial Health Of The Companies. Imagine a Situation Where A Natural Calamity Causes Many People To File Claims At The Same Time. If The Company Is Not Financially Sound, It Will Not Be Able To Take This Huge Pressure To Pay The Insurance. This Ratio Tells You How Solvent A Company Is. As Per IRD Norms, Every Insurance Company Must Maintain A Solvency Ratio Of At Least 1.5. So You Have To Keep In Mind, Among Other Things, That The Company You Are Buying Insurance From Compares To Others!
Also Read – 5 Tips Health Insurance