Thread by @joinditto

The ULTIMATE GUIDE to select a TERM LIFE INSURANCE plan

(Don’t forget to hit❤️ before you proceed)

Thread🧵

1) Policy duration👉

See, your term plan is meant to cover your family’s money needs in case you pass away untimely.

That is, you need it only till your kids are financially dependent on you.

So, why take an unnecessarily long & costly life insurance plan for 99 years or so?

We recommend going for a term plan that covers your family until your kids are well-settled & capable of sustaining themselves & your spouse;

They’re much cheaper too!

Note that the average life expectancy in India is 70.

So, the premiums shoot up drastically after that.

2) Policy Cover👉

A term plan is meant to replace you financially.

So, you’ve got to consider some things:

✔️Your annual income
✔️EMIs & loans
✔️Daily expenses such as rent, bills, groceries, health & other insurance premiums etc.

✔️Kids' school fees (1L+ in metro cities) & college fees (20L+ for MBA colleges).

✔️Existing life insurance policies (if any).

And most importantly, keep in mind 6% inflation–

That means that your 1CR cover will be equivalent to 4.5L in the next 50 years.

3) Riders👉

You can make your term plan more comprehensive by getting these add-ons a.k.a riders:

3.1) Life Stage–

It allows you to increase your cover by a certain amount during life-changing events like marriage or kids.

3.2) Waiver of Premiums–

This allows you to keep your policy without having to pay premiums in case you get disabled in an accident.

3.3) Critical Illness–

The insurer will pay you some amount early to battle a critical illness.

Now that you've picked the right cover & duration, how do you pick the insurer?

1) Claim Settlement Ratio (CSR)👉

The ratio of the no. of claims the insurer settled & the no. of claims they received.

You’re going to want an insurer with higher chances of claim settlement.

✅If the CSR >= 99%, you’ve got a winner;

✔️If CSR >=90%, it’s pretty good.

⛔But if it’s less than 70%, it’s definitely a no-go.

2) Amount Settlement Ratio (ASR)👉

Similarly, you’ve got the ASR i.e. amount settled by the insurer/amount claimed.

You’re going to want an insurer that mostly settles your claim in full.

✔️Any ASR above 90% is good enough;
✅Above 98% is a hit!

3) Complaint Volume👉

If the total number of complaints per 1000 claims is higher than 20, you might have to re-evaluate your options.

Now, that's most of what we consider while picking a term plan for you.

But..

There are many things that depend on your needs.

BTW, some of India’s top insurers are about to hike their term insurance prices⚠️

So, if you’re considering getting term insurance

✅Schedule a FREE call with us to find the best plans at low rates- bit.ly/45bj2JJ