Must have Features

• Claim Settlement Ratio

• When you’re buying a term policy 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 claim settlement ratio averaged over 3 years and the proportion of claims paid out in under 30 days.
• If both numbers are above 97%, then you have a winner on your hands.

• Number of Complaints

• If the total complaints received (per 10,000 claims registered) is higher than 20, then it’s time to reconsider your insurer.
• You can find these figures in public disclosures as companies are liable to report this on their website.
• Policies that do not feature copayments or deductibles might be expensive; however, they offer the advantage of medical coverage during emergencies. It is better to select a plan that does not come with any limitations so that you get the maximum during claims.

• High 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 claim settlement ratio.
• So you will need to look at the total amount settled as a percentage of the total value claimed.
• A number above 90% should be good enough. You can find this information in IRDAI’s annual reports.

• Critical Illness Benefit

• If you’re diagnosed with a debilitating disease, you might be at risk of losing your job and your family will have to make do without your income.
• However, if you opt for the critical illness benefit, the term policy will make a payout to deal with the crisis.
• Just remember that not all critical illness benefits are the same and you have to dig a little deeper.

• Accidental Death Benefit

• Some policies offer you the option of adding extra protection for accidental deaths.
• And while we recommend customers choose a comprehensive cover without worrying about the specifics of death precisely, it’s nice to have this option on top.

• Terminal Illness Benefit

• Some policies will disburse the entire cover amount the moment you are diagnosed with a terminal illness.
• So even in the absence of death, you can still get the money and use it any way you wish. This is another benefit that’s nice to have.

• Increasing Cover Benefit

• Some policies automatically increase your cover by a certain amount (usually inflation) to always provide you with the necessary protection as you grow older.




Good to hav Features



• Zero Cost Option
• Some insurers will return all your premiums if you forego your policy before maturity, during a period specified by the insurer.
• So in essence, you get all your premiums back, while also being protected under the term plan during this time.
• Waiver of Premium
• Some policies waive all future premium payments if you are ever disabled or diagnosed with a critical illness. Ideally, you’d want a policy that does this for both events.
• So if you are looking to make sure you’re always in tip-top shape, these health checkups might come in handy.
• Top - Up
• Some policies extend the option of increasing your cover at a later date, subject to a medical evaluation. And you definitely want a policy that extends this benefit.