by manish pandye
Published Fri, May 5th 2017, 18:05 | Advertising
Life insurance policy is one of the best forms of financial security for you and your family members in case you meet an unfortunate incidence. The market offers different types of life insurance plans such as whole life insurance, term insurance plan, money back policies, unit-linked insurance plans, etc. Each policy is unique in its own way and there are several factors to determine while purchasing the policy. Some of these would be your premium costs, maturity benefits, financial goals, age, etc. But one of the most important factors that help choose a sound and effective policy would be the claim settlement ratio of a company. For common man, it’s a daunting task to understand the term as they are not so used to with insurance products in everyday life.
The article will help you understand claim settlements in a better way so that you can choose the most ideal insurance policy.
Claim settlement ratio is the number of settled claims done made by the insurance companies in a given year and expressed in the form of a percentage of total claims filed. For instance, if the firm files a hundred claims in a year and settles ninety-five cases, the claim settlement ratio will be 95%. A low claim settlement hints that there is a low probability of claim settlements on time, which will delay the very purpose of owning an insurance policy. Life insurance being a long-term commitment, a cover with a low claim settlement ratio will be at a risk of compromising the family’s future security. Although, it’s almost difficult to expect cent percent ratio, but buyer should eye upon insurance companies that have the best claim settlement ratios.
In life, we all face the test of time and it becomes difficult to deal with situations. There are some leading insurance companies who commit to help you in every possible way they can with a simpler, easier and faster claim process, so your policy stands strong by your side when you’re in dire needs. Some companies offer claim settlement as high as 98.1% where all claims get settled, via electronic transfer, so claim money reaches where it’s needed faster.
Claim settlement ratio provides a glimpse into the insurance provider’s reliability for settling down claims. It helps you understand how willingly the insurer is making funds available to you during times of crisis in the future. It indicates the company’s efficiency during the tough times, the mentorship and hassle-free way to reach the necessary financial security to the beneficiaries in time.
There are some companies who offer flimsy excuses by stating it’s not genuine or the personal data isn’t right. So, explore the different plans and make queries about each provider’s claim settlement ratio. A lot of reputed insurance providers settle claim within 30 days. So, you should also give importance to consistency ratio at which issues are being resolved. The ratios vary from year-to-year. Make sure you study different ratios before purchasing a policy. Only, then you’ll be able to safeguard you and your loved one's future and give financial solace when there is an unfortunate incidence or accident.