Term insurance can protect the policyholder’s family from a financial burden. However, the individual must select the right term insurance for ensuring safety. Furthermore, in order to receive the sum assured, the claim should be settled by the insurance company.
In this article, we will discuss things to look for when selecting the best term insurance for your family and what you need to keep in mind while filing a claim.
A term insurance policy can provide financial protection to the policyholder’s family. In case the policyholder passes away during the tenure of the policy, then the insurer can provide the sum assured to the beneficiaries. This sum assured can be used to pay regular and future expenses.
But there are various term plans. Selecting one can be difficult for many people. Therefore, here are some tips on how to select the right term insurance-
1. Determine the Sum Assured
The first thing that a person needs to do is calculate the amount of money his/her dependants will require in case he/she meets with an untimely demise. Therefore, the individual should opt for this as the sum assured amount.
2. Assess Future Requirements
While determining the sum assured amount, a person needs to assess his/her family’s future requirements. Some additional expenses might arise in the future. If such needs aren’t considered, then the policyholder’s family might face financial difficulties.
3. Choose the Right Insurance Company
There are many insurance companies, and selecting the right one is crucial. There are a few factors that a person should consider while selecting the insurance company, such as the claim settlement ratio. The claim settlement ratio refers to the number of claims settled against the number of claims raised. The higher the claim settlement ratio, the higher the likelihood of getting the claim approved. Thus, it is recommended to opt for an insurance company that has a high claim settlement ratio.
Things to Keep in Mind to Ensure a Smooth Claim Settlement Ratio
- Inform the Insurer Immediately
In order to raise a claim, the beneficiary or the policyholder needs to inform the insurer immediately. They can inform the insurer by call or email.
- Submit all the Documents
After informing the insurer, the beneficiary or the policyholder will be required to provide some documents.
- Provide the Details
The beneficiary or the policyholder will have to submit all the necessary details while filing an insurance claim. Ensure the details are accurate in order to not get the claim rejected.
- Understand the Claim Settlement Process
Every policyholder needs to understand the claim settlement process. They should know the documents to submit and other requirements for filing a claim.
Why Term Insurance is Important
Term insurance is crucial in order to provide financial protection to the policyholder’s family. Therefore, it is important to purchase a term plan to reduce the financial burden. A term plan can ensure the safety of the insured person’s family.
Keep the aforementioned points in mind while selecting an insurer and filing a claim.