42% of people DON’T TRUST their insurance provider
Because of rampant misinformation and mis-selling of insurance products
The crazy part? Term Insurance is one of the most essential insurance, yet only 3.2% Indians have it
THREAD: How to choose the right insurance provider🧵
Because of rampant misinformation and mis-selling of insurance products
The crazy part? Term Insurance is one of the most essential insurance, yet only 3.2% Indians have it
THREAD: How to choose the right insurance provider🧵
Term Insurance is a legal agreement between a person and an insurance company,
guaranteeing that in the unfortunate event of the insured’s passing during the policy's term, the insurer will pay a death benefit to the insured's family.
guaranteeing that in the unfortunate event of the insured’s passing during the policy's term, the insurer will pay a death benefit to the insured's family.
Before buying a term insurance plan, it's not only important to know how to choose the right plan but also how to filter the right insurance provider.
Reputable providers ensure a smooth claims process & good customer service, providing peace of mind in difficult circumstances.
Reputable providers ensure a smooth claims process & good customer service, providing peace of mind in difficult circumstances.
1️⃣ Claim Settlement Ratio (CSR):
It is the % of claims settled out of the total number of claims received by the insurance provider.
When you’re buying a term plan you want to make sure that the insurer is paying out your claims in a time bound manner.
It is the % of claims settled out of the total number of claims received by the insurance provider.
When you’re buying a term plan you want to make sure that the insurer is paying out your claims in a time bound manner.
To do this, you need to check the CSR averaged over 3 years as well as the proportion of claims paid out in under 30 days.
If both numbers are above 97%, then you have a winner on your hands.
You can check this CSR from the IRDAI website or from the company's official website.
If both numbers are above 97%, then you have a winner on your hands.
You can check this CSR from the IRDAI website or from the company's official website.
2️⃣ Amount Settlement Ratio (ASR):
In addition to the Claim Settlement Ratio, do not forget to check the Amount Settlement Ratio.
Some insurers pay out the smaller claims while declining to pay out the few higher-value claims in a bid to improve the CSR.
In addition to the Claim Settlement Ratio, do not forget to check the Amount Settlement Ratio.
Some insurers pay out the smaller claims while declining to pay out the few higher-value claims in a bid to improve the CSR.
Suppose 100 claims made by the insurance holders amounted to 20,00,00,000. From which 97% claims settled amounted to 15,00,00,000.
This means the ASR is just 75% and only considering CSR can be misleading sometimes.
An ASR above 90% should be good enough.
This means the ASR is just 75% and only considering CSR can be misleading sometimes.
An ASR above 90% should be good enough.
3️⃣ Volume of Complaints:
If the total complaints received (per 1000 claims registered) is higher than 20, then it’s time to reconsider your insurance provider.
You can find these figures in public disclosures as companies are liable to report this on their website.
If the total complaints received (per 1000 claims registered) is higher than 20, then it’s time to reconsider your insurance provider.
You can find these figures in public disclosures as companies are liable to report this on their website.
4️⃣ Annual Business:
It’s the business made in a year in premiums or policy sold. For example, if a company sells 50000 policies, each worth 20000 then the annual business would be 1 billion.
An insurance provider with good business indicates that people put their trust in them.
It’s the business made in a year in premiums or policy sold. For example, if a company sells 50000 policies, each worth 20000 then the annual business would be 1 billion.
An insurance provider with good business indicates that people put their trust in them.
5️⃣ Solvency Ratio:
Whenever you get life insurance coverage, the insurer guarantees to pay a specified sum to your beneficiary in the event of an unanticipated occurrence.
Consider the example of natural disasters such as earthquakes, floods, and tsunamis.
Whenever you get life insurance coverage, the insurer guarantees to pay a specified sum to your beneficiary in the event of an unanticipated occurrence.
Consider the example of natural disasters such as earthquakes, floods, and tsunamis.
As a consequence of such an occurrence, the corporation may confront a greater number of insurance claims than expected.
In this case, the insurance provider's ability to satisfy claims is determined by its solvency, i.e., its financial ability to pay its commitments.
In this case, the insurance provider's ability to satisfy claims is determined by its solvency, i.e., its financial ability to pay its commitments.
The financial status of insurance firms may thus be determined by looking at their current solvency ratio.
A high ratio indicates that the firm is financially strong and has sufficient resources to settle any valid insurance claims.
A high ratio indicates that the firm is financially strong and has sufficient resources to settle any valid insurance claims.
This was a simple checklist to help you pick an insurer you can rely entirely upon before you get a term insurance policy.
We know it’s a crucial decision to make and that’s why we have partnered with the expert team @joinditto to provide you with a spam-free consultation call.
We know it’s a crucial decision to make and that’s why we have partnered with the expert team @joinditto to provide you with a spam-free consultation call.
Here’s how you can book your call:
1. Go to Ditto’s website: bit.ly
2. Click on “Book a free call”
3. Select “Term Life Insurance”
4. Choose the date & time as per your convenience and RELAX!
Ditto's advisors will take it from there! LIMITED SLOTS!
1. Go to Ditto’s website: bit.ly
2. Click on “Book a free call”
3. Select “Term Life Insurance”
4. Choose the date & time as per your convenience and RELAX!
Ditto's advisors will take it from there! LIMITED SLOTS!
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