Best Term Insurance Plans

Most people often get into the misconception that the term insurance plans do not provide ample coverage as they do not provide any maturity benefit. However, contrary to this, various term insurance plans offer high insurance coverage at a very affordable premium rate. Moreover, a hassle-free process of premium payment guarantees safety with the convenience of the best term insurance plan. As the simplest form of life insurance product, there are wide ranges of best affordable term insurance plans available in the market. According to your requirement and suitability, you can compare the plans online and choose the most comprehensive one available in the market. This article will give you a better understanding of the best term insurance plans along with their respective claim settlement ratios. 

What is Term Insurance?

Term Insurance is amongst some of the best and the most cost-effective investment modes to financially secure the future of your loved ones, in times of uncertainty. The best term plan provides coverage to the insured and their families in the form of growing regular income and a lump sum amount. This insurance policy secures the financial future of their family in case of any eventuality. Additionally, different term plans offer different term plan benefits. The best term Plan with Return of Premium (TROP) offers a return of premium in case the policyholder survives the policy term.

Best Term Insurance Plans in India 2022

Below is a list of Best Term Insurance Plans in India from some of the top-rated term insurance companies.

Disclaimer: “Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.” 

**Note: The above plans require mandatory medical proofs. 

Best Term Insurance Plans in India

1. Aditya Birla Sun Life Protector Plus Plan

   This is a traditional protection plan which offers a higher sum assured amount at a nominal premium rate. The plan secures the financial future of the family of the insured against any type of eventuality. Moreover, the plan also takes care of the future liabilities and helps to maintain a good lifestyle even in the absence of the breadwinner of the family. Here are some of the salient features of the policy and the benefits offered by it.

   Features and Benefits

   Here is a list of the features and core benefits of Aditya Birla Sun Life Protector Plus Plan:

   • The plan provides complete financial protection at a minimum premium rate.
   • Protects against rising cost of living with the option of increasing the sum assured amount.
   • The plan comes with an inbuilt total and permanent disability cover to enhance the coverage of the policy.
   • The beneficiary can receive the death benefit as an annual income.
   • Policy rewards are offered for maintaining a healthy lifestyle.
   • The plan offers rider options to enhance the coverage of the policy.
   • The policyholder can save on tax under Section 80C of the Income Tax Act.

2. Aegon Life iTerm Plan

   Aegon Life iTerm Plan is a pure term insurance policy, which comes with an inbuilt terminal illness benefit. The plan provides life coverage until the age of 80 years.  As an online term insurance plan, the process of policy purchase is very simple and hassle-free. The plan also provides additional rider benefits like accidental death rider benefits and critical illness benefits to enhance the coverage of the policy.

   Features and Benefits

   Here is a list of the features and core benefits of the affordable term policy – Aegon Life iTerm Plan:

   • This plan can be purchased online in a simple and easy process.
   • The minimum entry age of the policy is 18 years, whereas the maximum entry age of the policy is 65 years.
   • The maximum maturity age of the policy is 80 years.
   • The insured can avail of tax benefits under section 80C of the Income Tax Act.
   • In case of demise of the insured, death benefit is paid to the beneficiary of the policy.
   • The plan offers flexibility on premium payment mode.
   • The plan offers a lower premium rate for non-smokers and female insurance buyers.
   

3. Ageas Federal iSurance Flexi Term Plan

   This is a non-participating non-linked term insurance plan that provides financial coverage to the family of the insured against death or eventuality. The plan is specifically designed to secure the financial future of your loved ones. As a comprehensive protection plan, this plan can be purchased online in an easy way.  Let’s take a look at the features and benefits of the policy.

   Features and Benefits

   iSurance Flexi Term plan comes packed with several features and benefits. Some of the key features and benefits are listed below:

   • Lump-sum with a conversion option
   • Fixed monthly income benefit
   • Lump-sum + fixed monthly income benefit
   • Lump-sum + increasing monthly income benefit.
   • The policyholder can opt for an accidental death benefit rider option to increase its coverage.
   • The policyholder can save on taxes under Section 80C of the Income Tax Act.
   • The policy offers a rebate on a higher sum assured amount and for the female policy buyers.

4. Aviva Life Shield Advantage Plan

   This is a non-linked non-participating protection plan, which secures the financial future of your loved ones in case of any eventuality. The plan not only provides a death benefit to the insured’s family in case of an eventuality but also provides survival benefit as the return of premium in case the policyholder survives the entire tenure of the policy.  As a term return of premium plan (TROP), this plan can be purchased online in a simple and hassle-free way. Let’s take a look at the features and benefits of the policy.

   Features and Benefits

   These are some of the features and benefits offered by the policy.

   • The plan provides total protection to the family of the insured at a nominal cost.
   • As a TROP plan, the premium paid towards the policy is returned in case the insured survives the entire tenure of the policy.
   • The insurance holder can choose to pay the premium through a regular premium payment option or a single premium payment option.
   • The plan offers two different coverage options to choose from i.e.
   • Option A- Life Protection
   • Option B- Life cum disability protection along with the return of premium.
   • Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.
   

5. Bajaj Allianz eTouch Online Term Plan

   Bajaj Allianz eTouch Online Term Plan ranks amongst the term insurance plans from Bajaj Allianz Life Insurance. The plan provides financial protection to the family of the policyholder at a low premium rate. As a non-participating pure term insurance policy, Bajaj Allianz eTouch Online Term Plan offers 4 different life cover options to choose from. Apart from the death benefit, the plan also provides tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961.

   Features and Benefits

   Bajaj Allianz eTouch Online Term Plan comes packed with certain benefits and features, they are as follows:

   • This is one of the and affordable term plans, which can be purchased online in a simple and hassle-free way.
   • In case of demise of the insured, the policy offers a guaranteed annual pay-out to the family for 15years.
   • Tax benefit can be availed under sections 80C and 10(10D) of the Income Tax Act.
   • The plan offers two different options for pay-outs.
   • The maximum maturity age of the policy is 70 years.
   • The plan offers a free-look period of 15 days.

6. Bharti AXA Term Plan eProtect

   This is an online term insurance plan that provides comprehensive coverage to the family of the insured in case of any emergency. As an online term plan, it can be purchased online in an easy and hassle-free way. Along with the benefits of insurance coverage, the plan also helps to save on taxes. The following are some of the features and benefits of the policy.

   Features and Benefits

   These are some of the features and benefits offered by the policy.

   • The plan comes with unique family care benefits.
   • The plan offers the option to choose the insurance coverage amount and tenure of the policy as per one's requirement and suitability.
   • The policyholder can pay the premiums annually or semi-annually.
   • The policyholder can customize the plan as per their need.
   • Tax benefits can be availed under Section 80C of the Income Tax Act.

7. Canara HSBC iSelect+ Term Plan

   Canara HSBC iSelect+ term plan is a comprehensive protection plan which is specifically designed to provide financial security to the family of the insured and take care of the future financial needs of the family in the absence of its breadwinner. The plan offers multiple options like covering spouse in the same policy, whole life coverage, multiple premium payment options, etc. Here are some of the salient features and benefits offered by the policy.

   Features and Benefits

   The following are some of the features and benefits offered by the policy.

   • The plan provides different coverage options and benefits pay-outs to choose from.
   • The policyholder can pay the premium of the policy either by a single premium payment option or a limited premium payment option.

   Different cover options offered by the plan are:

   • Plan Options 
   • Life
   • Life with the return of premium
   • Life plus
   • Coverage Options (applicable only with the plan option life) 
   • Level
   • Increasing
   • Decreasing
   • Optional In-built Cover 
   • Accidental Death Benefit
   • Accidental Total & Permanent Disability-premium protection
   • Accidental Total & Permanent Disability – premium protection plus
   • Child support benefit
   • Tax benefits can be availed under Section 80C of the Income Tax Act.
   *All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

8. Edelweiss Tokio Life My Term Plan +

   This is a limited pay term insurance plan, which provides insurance coverage to the family of the insured in case of any eventuality. Moreover, the plan also provides an additional life cover to the spouse under the better half-benefit option. let’s take a look at some of the benefits offered by the policy and its salient features.

   Features and Benefits

   The following are some of the features and benefits of this policy.

   • The plan offers different coverage options to choose from.
   • The plan offers protection against critical illnesses.
   • The policyholder can choose the limited premium payment option to pay the premium of the policy.
   • The plan offers add-on rider benefits as a waiver of premium rider.
   • Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.
   • The death benefit can be availed either as lump-sum or monthly income benefit or a combination of both.

9. Exide Life Smart Term Plan

   This is a non-participating, non-linked individual protection plan, which provides financial security to the policyholder's family against any type of unfortunate event. The plan offers higher insurance coverage at a nominal premium rate. As a term return of the premium plan, the entire premium of the policy is returned to the insured if he/she survives the entire policy tenure. Here are some of the features and benefits offered by the policy.

   Features and Benefits

   Some of the key features and benefits of the Exide Life Smart Term plan are as follows:

   The policyholder can opt for critical illness rider and accidental rider benefits to enhance the coverage of the policy.

   • The return of the total premium is paid to the insured person on completion of the policy tenure.
   • The plan offers flexible premium payment options.

10. Future Generali Flexi Online Term Plan

    This is an individual non-participating non-linked pure protection plan. The plan is specifically designed to provide comprehensive coverage to the family of the insured and take care of their future liabilities in case of an unfortunate demise of the insured person during the policy tenure. The plan offers a flexible coverage option to choose from. Let’s take a look at the salient features and benefits offered by the policy.

    Features and Benefits

    Some of the key features and benefits of the Future Generali Flexi Online Term plan are as follows:

    • Basic life cover
    • Income protection
    • Fixed income protection
    • Increasing income protection
    • The plan offers a rebate for female policy buyers.
    • The death benefit can be availed either as a lump-sum amount or as a monthly pay-out.
    • Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.

11. HDFC Life Click 2 Protect 3D Plus

    HDFC Life Click 2 Protect 3D Plus is one of the online term plans, which provides comprehensive insurance coverage to the family of the life insured at an affordable premium rate. The 3D feature in the HDFC Life Click 2 Protects 3D Plus refers to the uncertainties of life i.e., death, disease, and disability. The plan provides financial security to the family of the life insured in case of any eventuality during the tenure of the policy. HDFC Life Click 2 Protect 3D plus offers the option of 9 plans to choose from.

    Features and Benefits

    Some of the key features and benefits of the HDFC Life Click 2 Protect 3D Plus plan are as follows:

    • This is the term insurance plan online, which can be purchased in a simple and hassle-free way.
    • The plan provides financial protection to the family of the insured in case of any eventualities.
    • The Insurance holders can choose from 9 different plan options, as per their requirement and suitability.
    • This is one of the affordable term plans with a free-look period of 30 days.
    • Tax benefit can be availed under sections 80C and 10(10D) of the Income Tax Act.
    • The plan offers a lower premium rate for non-smokers and female insurance buyers

12. ICICI Pru iProtect Smart

    ICICI Pru iProtect Smart Plan ranks amongst the term insurance plans and comes with different options of life cover to choose from. As a comprehensive term insurance plan, ICICI Pru iProtect Smart provides financial protection to the family of the insured at a very affordable premium rate. The plan also provides additional rider benefits as an accidental death rider benefit and critical illness benefit to enhance the coverage of the policy.

    Features and Benefits

    The salient features and core benefits of the ICICI Pru iProtect Smart plan are as follows:

    • This is amongst the term plans, which can be purchased online in a simple and hassle-free way.
    • The plan provides comprehensive coverage against terminal illness, death, and disability.
    • Offers the benefit of tax exemption U/S 80C of Income Tax Act.
    • The insured can choose from the three different payment options, which are monthly income, lump-sum, and increasing income.

13. India First Anytime Plan

    This is a pure protection plan that ensures that the policyholder’s loved ones are taken care of even in his/her absence. This plan can be purchased online in a simple and hassle-free way. Along with providing financial coverage to the family, the plan also takes care of the future liabilities of the family in case of the demise of the insured person during the policy term. The following are some of the features and benefits of the policy.

    Features and Benefits

    India First Anytime Plan comes packed with several features and benefits. Some of the key features and benefits are listed below:

    • The policy provides coverage of up to 30 years at a nominal premium rate.
    • In case of an unfortunate demise of the insured person during the policy term, the death benefit is paid as a lump sum to the beneficiary of the policy.
    • Tax benefits can be availed under section 80C of the Income Tax Act.
    • The policyholder can choose the option of single premium payment or regular premium payment to pay the premium of the policy.

14. Kotak e-Term Plan

    The Kotak e-Term plan is a complete risk cover plan that will protect your loved ones. It truly offers a high level of protection and is available at a special premium cost for women and non-tobacco users.

    Features and Benefits

    Listed below are the key features and benefits offered by Kotak e-Term plan:

    • It is a low-cost insurance policy, which offers high cover at a pocket-friendly price.
    • Through the step-up option, the cover can be enhanced at special life events.
    • Offers three pay-out options to choose from and three plan options.
    • Choose rider benefit options such as accidental death benefit, total permanent disability, and critical illness.

15. LIC e-Term Insurance Plan

    As one of the affordable LIC's online term insurance plans, that provides financial security to the family of the insured at a very affordable premium rate.  It is an online term plan, the process of purchase of LIC e-term plan is very simple and hassle-free. The policy provides a death benefit to the beneficiary of the policy in the event of the demise of the insured during the policy tenure.

    Features and Benefits

    LIC e-Term Insurance Plan comes packed with several features and benefits. Some of the key features and benefits are listed below:

    • This is a traditional non-participating term insurance plan in India.
    • The plan only offers a death benefit.
    • The plan can be purchased online in a simple and hassle-free way.
    • Offers insured the flexibility to choose the tenure of policy ranging from a minimum of 10 years to a maximum of 35 years.
    • Offers the benefit of tax exemption u/s 80C of Income Tax Act.
    • The maximum maturity age of the policy is 75 years.

16. Max Online Term Plan Plus

    Another suitable term insurance plan is Max Online Term Plan Plus. As a non-participating pure term insurance policy, Max Online Term Plan Plus offers the 3 different life cover options to choose from. The plan also provides additional rider benefits like accidental death rider benefits to enhance the coverage of the policy. It also offers, waiver of premium rider benefit, wherein the policy continues in case the life insured is not able to pay the premium due to illness or dismemberment.

    Features and Benefits

    Max Online Term Plan Plus comes loaded with certain features and benefits. Some of these features and benefits are listed below:

    • This is an affordable term plan, which can be purchased online simply and easily.
    • The plan offers 3 different variants of pay-out options to choose from.
    • The plan comes with extra rider benefits, to enhance the coverage of the policy.
    • The plan offers flexibility on premium payment mode.
    • Tax benefit can be availed under sections 80C, 80D, 80DD, and 10(10D) of the IT Act.
    • This is the term plan as it offers a free-look period of 30 days.
    • The plan offers a lower premium rate for non-smokers and female insurance buyers.

17. PNB Metlife Mera Term Plan 

    Marking its place amongst the term insurance plans, PNB Metlife Mera Term Plan offers protection to the family of the insured at a low premium rate. PNB Metlife Mera Term Plan also offers the option of increasing monthly cover by 12% per annum. Moreover, the policy also provides coverage for a spouse. Apart from death benefits the plan also provides tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961.

    Features and Benefits

    Let's dig into some of the core benefits and key features of the PNB Metlife Mera Term Plan:

    • This is a comprehensive term insurance plan, which can be purchased online.
    • The policy offers individual coverage to the spouse under the same plan.
    • The plan provides the flexibility to enhance the coverage of the policy.
    • The plan comes with a maximum maturity age of 75 years.
    • Lower premium rates are offered for non-smokers and female policy buyers.
    • The policyholder can avail of tax benefits under section 80C of the IT Act.
    Types of Term Plan

    

    Term Plan for Senior Citizens

    

    Term Plan for Spouse

    

    Term Plan for Family

    

    Term Plan for NRI’s

    View Plans

18. Sahara Kavach

    The Sahara Kavach term insurance plan is suitable for those who have limited savings, however, are keen to secure their families against any uncertainty of life. This plan is an ideal solution wherein a large risk cover can be bought by simply paying a low premium amount. In case of an unfortunate demise, the sum assured will be payable.

    Features and Benefits

    Listed below are the key features and benefits offered by Sahara Kavach:

    • The minimum sum assured within the plan is Rs.5 lakh
    • In case the plan lapses, the customers get five years to revive the equivalent.
    • The individuals can claim tax benefits within Section 80C and Section 10 (10D).
    • A certain rebate is offered for yearly and semi-yearly payment of the premium.

19. SBI Life eSheild

    SBI Life eShield is amongst the affordable term insurance plans and is known to provide different plan options to meet various needs of its customers. The best part of the plan is that the customers who follow a healthy lifestyle get more affordable premium rates. The plan has several benefit structures, such as level cover and increasing cover. The product also offers in-built Accidental Death cover as well as tax benefits to the policyholders.

    Features and Benefits

    • This is the term insurance plan in India, which comes with regular premium paying options.
    • SBI Life eSheild is the term plan that provides comprehensive coverage at an affordable premium rate.
    • The insured can choose from three different options of coverage.
    • The premiums paid towards the policy are applicable for tax exemption U/S 80C of Income Tax Act. The maturity proceeds are applicable for tax exemption U/S 10(10D) of the IT Act.
    • The plan comes with a minimum entry age of 18 years, whereas the maximum entry age of the policy is 65 years.
    • The maximum maturity age of the policy is 70 years.

20. SBI Smart Shield

    SBI Smart Shield is another term insurance plan by SBI that provides financial protection to the family of the life insured at an affordable premium rate. As a non-participating pure term insurance policy, SBI Smart Shield offers 4 different life cover options to choose from. The plan also provides additional rider benefits like accidental death rider benefits and critical illness benefits to enhance the coverage of the policy.

    Features and Benefits

    Here are some of the best features and benefits of SBI Smart Shield:

    • This is a traditional non-linked pure term insurance plan.
    • The plan comes with extra rider benefits, to enhance the coverage of the policy.
    • SBI Smart Shield is an affordable term plan that offers a free-look period of 15 days.
    • In case of demise of the insured, death benefit is paid to the beneficiary of the policy.
    • The insured can avail of tax benefits under section 80C of the Income Tax Act.
    • The maximum maturity age of the policy is 70 years.
    • The plan offers 4 different options for pay-out.

21. Shriram Life Cash Back Term Plan

    The Shriram Life Cash Back Term Plan is one pocket-friendly and easy-to-get financial protection plan that you can get for yourself and your loved ones. This plan also offers a lump sum pay-out option in case of an untimely demise of the policyholder for helping the family to reduce the debts and secure them financially. The premiums that are paid towards the plan will be returned on maturity.

    Features and Benefits

    Listed below are the key features and benefits offered by Shriram Life Cash Back Term Plan:

    • The return of premiums upon maturity.
    • Flexibility to pay the premium payment and choose accordingly.
    • Hassle-free and almost negligible paperwork.
    • Option to enhance the policy cover and make it more secured with rider benefit options.
    • The affordable premium rate does not create a hole in the pocket and provides good cover.

22. SUD Life Abhay

    The SUD Life Abhay is one non-participating term plan, which offers protection for your close ones in case of an untimely demise. One can choose between accessing a life cover along with the return of a premium alternative or just availing of a life cover. This plan also provides three various types of pay-out alternatives that you might select on the premise of the needs.

    Features and Benefits

    Listed below are the key features and benefits offered by SUD Life Abhay:

    • The plan offers flexibility to choose between options of premium payment terms and multiple policy terms.
    • It offers coverage up to forty years of age and a maximum life cover of Rs.100 crores.
    • Offers three pay-out options that are monthly income, pay in a lump sum, or monthly income + lump-sum.
    • Tax benefits are offered within Section 10 (10D) and Section 80C of the IT Act.

23. TATA AIA Maha Raksha Supreme

    The TATA AIA Maha Raksha Supreme is a plan that ensures that the family members are never short regarding financial resources and lead their lives without any financial stress after the demise of the breadwinner. This non-linked insurance product also ensures that the burden of debts or loans, if any, does not impact the family’s living and their happiness. This Maha Rakshak Supreme plan offers an array of choices to fulfill the certain financial necessities of the family and secure their future accordingly.

    Features and Benefits

    Listed below are the key features and benefits offered by TATA AIA Maha Raksha Supreme:

    • Offers a life cover of up to 85 years of age or alternative whole life coverage is until the age of 100 years.
    • An alternative to enhance the policy and make it more secured through rider benefit options.
    • For customers who opt for a high level of protection, the premium is available at a special price.
    • For non-smokers or females, a standard premium at a special price.
    • Increase the cover at prospective milestones of life without undergoing any medical underwriting.
    • The policy provides the option to pay the premium only once or throughout the term of the policy or for a limited period.
    • Avail tax benefits as per the existing laws.

What is Claim Settlement Ratio?

The claim settlement ratio of an insurance provider is the number of claims that are settled versus the number of claims filed by its policyholders or their nominees. In this way, at the time of choosing a term insurance provider, you must also check the claim settlement ratio and prefer the one that has good CSR. Claim Settlement Ratio can help you find the best term plan.

Claim Settlement Ratio of Term Insurance Companies

Let us look at the claim settlement ratio of term insurance providers according to IRDA in the year 2017-18. The table is updated according to the latest data available. The insurance provider with the highest claim settlement ratio would offer the best term plan.

*Disclaimer: “Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.”

How to Calculate Claim Settlement Ratio of a Term Insurance Provider?

While looking for a term insurance policy, one of the major points to consider is the term insurance claim settlement ratio. The Claim Settlement Ratio of a company informs you about the number of the best term insurance plans that are settled by paying back the claims in case of death.

For most people, even the best term insurance plans become quite tricky to understand as the facts & figures used in these products are not easy to relate to. This is one of the major reasons that IRDA has made its mandate to use simple calculation methods to help users calculate the Claim Settlement Ratio.

The calculation of the Claim Settlement Ratio is based on the total number of claims received by the insurance company against the total number of claims settled by it.

To further simplify, the formula used for it is:

**Total Numbers of Claims Settled /Total number of Claims Made

Let's say, for example, an insurance company has received 5000 claims in a financial year and it settled 4800 claims amongst those 5000 claims in the same financial year.

**Thus, the CSR comes to be 4800/5000 = 96 percent

**Claim Rejection Ratio = (5000-4800) * 100/5000 = 4 per cent

Let us suppose 100 claims are still waiting to be processed by the company. In that case, the pending ratio will be: 100/5000*100 = 2 percent

The reason behind keeping these calculations simpler is to make the buyers understand them easily, which eventually enables them to make a fair decision after looking into CSR details.

Claim settlement ratio has been chosen to rate the insurance companies because it is the only ratio, which could be of use to customers while they select the policy. The high claim settlement ratio shows the insurer is reliable and could be trusted for taking best term insurance plans whereas the low ratio indicates that the credibility of the insurer is less and therefore they won't attract many customers because of their inability to settle claims.

Looking at the Claim Settlement Ratios of various companies it is clear that Life Insurance Corporation of India (LIC), Aditya Birla Sunlife, Bharti Axa, Aegon Life, and Edelweiss Tokio are the top 5 insurance companies that have fared well in terms of settling their claims and hence stand a good chance of gaining customers' attention for a Term Insurance Plan.

It is a suggestion to all the customers that they make their choices wisely depending on the past performance of the insurers evaluated through their Claim Settlement ratios. Besides that, age, health, and income of the individual are of ample importance because depending on that only would the insurer decide on the sum insured, premium, term, etc. Rest, the provided list is good enough to choose the best term insurance plan.

Term Insurance Riders

Return of premium option

Critical Illness cover

Accidental Death Cover

Limited pay

View Plans

Reasons Why Your Term Insurance Claim Could be Rejected? 

However, some factors might lead to the rejection of your claim. A few of them include:

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

1. Misrepresentation of Data

   Sometimes, the lack of information or wrong information shared by the insured in the application form (provided by the insurance company) can lead to claim rejection. If the person buying the insurance hasn't answered the questions or provided the data & information clearly at the time of buying insurance, it might also lead to a lapse of the claim. Therefore, you must provide relevant information and avail the claim for the best term plan for you.

2. Fraud

   There have been many cases where the customers have tried to fool the company and make extra money by making fraud claims. For instance, many times the customers quote a much higher value of the insured product than the real damage cost incurred, to extract more money from the insurer. Thus, insurance companies follow a thorough procedure to check the authenticity of the claims made, to avoid any losses.

3. Contracts

   It is a very common phenomenon amongst the term insurance policy buyers to ignore those teeny-weeny terms & conditions printed on the contract while signing it. For us, going through the list of terms & conditions has always been an unimportant task; however, that is where we get trapped, and then we have to pay its price later on. That is why it is advisable to take your time and thoroughly analyze the contract before signing it. In case, you get stuck at any point get it clear from the agent to avoid any confusion later on.

4. Nominee

   Every year, many claims are rejected by the insurer because the nominee was not present at the time of claim settlement. Therefore, a nominee needs to be present for claim settlement; otherwise, the claim can be rejected. Furthermore, if there is an ongoing dispute between two parties that have got the involvement of the legal heir or the nominee of the insurance, it needs to be settled before claiming the insurance as the insurance companies don't entertain such cases to avoid any involvement in such disputes in future.

   Before we conclude this topic, it is important to mention that you should not make your decision solely based on the Claim Settlement Ratio of an insurance company.  This is because, though you get a fair idea with CSR about the number of claims settled by an insurer in one particular year, it still does not give you any clear idea on why other claims were rejected.