Since childhood when we were being grown we use to do things freely and with full of efforts. What is the reason for that? Well, there may be several reasons for that but one of the major reason is security. Yes, security to the life and any miss happening. When we were small we use to be secured by our parents. Each step used to monitored by them and by chance if there is an alert of any wrong happening, they use to make us secure.
As time passed, when we put our feet in the young hood, the burden of responsibility pondered over us and one of the biggest fears is the insecurity. Insecurity is that thing which makes you uncertain of future and if something bad happens what will happen to your peers sitting behind. Conditions are worst when you are the only sole earner of the family. But, to protect all these things the concept of insurance came into the origin. The method of ensuring lives was incepted long ago by Chinese. Since then it has grown immensely. Insurance is basically insuring one’s life by giving money to those who are left behind after the death of the person.
The whole concept of insurance runs on premium. Premium is the basic amount paid by the insurer to the insuring company either monthly or yearly which gets accumulated and gets refunded wither after the death of the person or the term he has subscribed for. This type of insurance is called the term insurance. Term insurance is also known as life insurance. This basically deals with the matter related to life and death. It is being considered as one of the smart and long-term investments by the persons. The amount that gets refunded after the term carries a good amount of interest to it which is a very good thing. The amount of interest on term insurance is more than any bank FD.
These days there are dozens of companies selling their insurances. Some companies are fraudulent in nature. They try to baffle people by giving lucrative deals that don’t exist later. Before buying any insurance, you should be aware of these important factors to buy any term insurance.
- Claim settling ratio: This is all about the claims that are given by the company. It tells about the claims that have been given till now of the total insurances done. It’s a very good method to check the companies’ viability. Usually, a company which has claim settling ratio of more than 90% is preferred more.
- Solvency ratio: It is about if the insurer is able to pay you the amount directly after the incident. Many companies are not strong enough to pay the amount quickly. Also, RBI has a mandate the guidelines to make the solvency ratio to 1.5.
- Additional Covers Available:A term insurance is an additional cover for your family. It is always good to have additional security in a long run. It keeps you and your family safe.
Hence, it is very important to be prude and carefully analyze all the factors before signing up for
any term insurance policy.