What to keep in mind while getting a Whole Life Insurance Plan?

Compare premium amounts

Compare premium amounts

A Premium is the amount you pay monthly or yearly to the insurance company for your Insurance Policy.

Compare the premium amount of different insurance companies before buying a policy.

Think about the Sum Assured

Think about the Sum Assured

How much money we get from the insurance company at the end of the policy term, or in the case of death of the policyholder is the Sum Assured. Decide how much you will need.

Read customer reviews on company websites

Read customer reviews on company websites

Look for Persistency Ratio, negative comments, negative experiences, etc. in customer reviews on the company website.

 

Pro Tip:

The number of Life Insurance policies being renewed with the company by their customers through timely payments is called Persistency Ratio.

It is usually not revealed by companies as it is non-public data, however we can look for customer reviews on company websites.

Check the Claim Settlement Ratio of company

Check the Claim Settlement Ratio of company

The Claim Settlement Ratio shows the number of claims which were settled by the insurance company out of all the claims which were raised in the year. The Claim Settlement Ratio is published every year by insurance companies on their website.

Compare Additional Coverage

Compare Additional Coverage

These are the extra benefits, other than the Sum Assured, which the insurance company provides.

Example: Waiver of premium in case of disability, waiver of premium in case of critical illness, etc

Policy Tenure

Policy Tenure

Hold a longer term policy to attain full benefits of the Whole Life Insurance plan.

Cost of buying Additional Riders

Cost of buying Additional Riders

Riders are extra benefits that you can buy and add to your basic Whole Life Insurance plan. The cost of these riders should be considered.

Read more about Additional Riders here.

Points to remember

Points to remember

Think about these points before buying an insurance policy:

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    What is the monthly/ yearly premium you can afford to pay

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    How much Sum Assured will you need

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    How is the customer review and experience of the insurance company

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    What is the insurance company’s persistency ratio and claim settlement ratio

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    What policy term will best suit you

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    What are the Additional Coverage benefits of the plan

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    What is the cost of buying Additional Riders

To know how to settle a claim for a Whole Life Insurance Plan, read on

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