For decades, life insurance policies have been a mainstay of Indian households. Individuals purchase such plans in order to protect their families' future.
And, with the onset of the Covid epidemic in 2020, one is compelled to rethink fundamentals, such as life insurance.
If you're thinking of buying a life insurance policy, keep these crucial points in mind.
1. The insurer's track record
Before purchasing a life insurance policy, always check to see if the company pays claims on time or has a poor customer service record.
When evaluating different insurance companies and their policies, it's crucial to do your homework on the insurer's track record.
2. The Ratio of Claim Settlement (CSR)
You should also look into the life insurance company's Claim Settlement Ratio (CSR). It's a proportion of the number of claims paid to consumers by an insurance company to the total number of claims received by the company. The higher the number, the better.
Every year, the Insurance Regulatory and Development Authority of India (IRDA) releases the CSR report for life insurance businesses.
(Total claims authorised and paid)/(Total claims received by the insurer)x 100 = Claim Settlement Ratio
3. The firm's capabilities
According to a poll performed by the Life Insurance Council, mistrust and unethical sales techniques are two of the most significant barriers to consumers investing in insurance.
To make an informed decision, one should seek advice from financially aware friends and read online evaluations.
4. A focus on the customer
Insurance companies provide a variety of policies, which can be confusing to consumers. As a result, a business should improve its communication with customers in order to make them feel more safe about their insurance purchase.
It is critical for the customer to be able to distinguish between his or her true demands and the numerous insurance company offers.
5. The ability to provide service
Explaining crucial steps in the claim process, offering the correct policy for the consumer, providing as much information as possible to assist the consumer, and so on are all examples of service competence. It is critical for you to assess these parameters as a customer in order to make an informed and fair selection.
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