UNDERSTANDING LIFE INSURANCE

Comparison of life insurance companies

Most people know insurance is the best financial safety net to protect your family and loved me ones in the event that you die prematurely. Life insurance companies vary in many ways. However, we think it will be too expensive or compacted. Before you decide to opt for any, try and find out the various types and the pure comparison of all the types of life insurance Companies.

Here, we compare life insurance companies with certain plans.

  1. Term life insurance vs. Whole
  2. How much to buy
  3. How long it should last

Term life insurance vs Whole

Most assurers always ask the question “what type of life insurance policies should I choose?” Term life insurance or Whole insurance? The biggest difference between the two is that the whole life last for your entire life while Term life lasts for a specific amount of time. Term life insurance is frequently called “pure” life insurance.

Most people think about it when they imagine how a life insurance policy works. You pay a monthly premium, typically about one fourth the cost of whole life premiums in exchange for the promise that your life insurer will pay out a pre-set death benefit (also known as your “coverage” or “face amount”) to your survivors (also known as “beneficiaries”). That’s pretty much it. If you’ve bought other insurance products like auto insurance or homeowners insurance, it’s basically the structured the same way.

Whole life insurance has a large coverage and also a high amount of beneficiaries. It also has a savings component called the “cash value.” This savings component changes how whole life insurance functions and is the reason whole life insurance can last your entire life.

Remember that term life insurance is specially designed to combat against emergency of your family, to help them deal with debts and to replace lost income.

How much to buy

  1. The amount of money you put into this category is totally up to you, and may change depending on how much you can afford. Complete college fund for every child (remember to adjust for increasing college costs)
  2. Complete retirement fund for spouse
  3. Lost income (for either one to two years or longer)

How long it should last

Your life insurance should cover your longest financial obligation. Most term life insurance companies provide terms in five year increments that is 10 year term, 15 year term, up until 30 years. If your doesn’t fit exactly into one of those term lengths, your best bet is to round up.

For instance, if it lasts for another 31 years, pick a 35 year term. If your financial obligation ends before your term life insurance policy expires, you can cancel your term life insurance policy. This us because you don’t have to pay for extra years coverage you don’t need.

The following seven steps are necessary to be followed when you choose a life.

  1. Get your quotes( compare with other companies to see what they are offering)
  2. Pick a policy
  3. Fill out the application( read all the terms and conditions)
  4. Get your free medical exam
  5. Have a phone interview( clear all your doubts)
  6. Wait for approval & final rates
  7. Sign the policy

Here are a few life insurance companies in India that you could choose from.

List of Life Insurance Companies in India

Claim Settlement Ratio

Founded

AEGON Life Insurance

95.76%

2008

Aviva Life Insurance

94.45%

2002

Bajaj Allianz Life Insurance

92.04%

2001

Bharti AXA Life Insurance

96.85%

2008

Birla Sun Life Insurance

94.69%

2000

Canara HSBC OBC Life Insurance

95.22%

2008

DHFL Pramerica Life Insurance

96.62%

2008

Edelweiss Tokio Life Insurance

96.81%

2011

Exide Life Insurance

96.81%

2001

HDFC Standard Life Insurance

97.80%

2000

ICICI Prudential Life Insurance

97.88%

2000

IndiaFirst Life Insurance Company Ltd – India First

89.83%

2009

Life Insurance Corporation of India

98.04%

1956

Star Union Dai-ichi Life Insurance

92.26%

2008

Tata AIA Life Insurance

98%

2001