😇How I selected Best Term Insurance for me? | कंपनी ने छुपाया, पर मुझे दिख गया - YouTube

I was researching term insurance for the last couple of days

Because I want to buy a term insurance before I will turn 26

But when I started to research about it There were a lot of options like

I have watched the ads of HDFC, ICICI, Max Life multiple times that

Now my mind has rote it due to repeated viewing

It creates a lot of confusion for a common man because

Because every company says that we are best So, Take term insurance from us

But I don't take it lightly Term insurance means that

My family should easily get the claim after me

There is no meaning in my insurance if my family will be not able to get claim easily

And My family's future will be also not secure in that condition

I want to share all the information which I collected through my research

I will tell everything in this video which you need to know about term insurance

I will also share some secrets with you which a company don't want you to know

But I don't work for companies I work for you

I have simplified the entire complex research in a 5 step process

Which will help you to find the best insurance company of any year

Every company reject some claims every year despite how good the company is

We will also know that how can you escape yourself from that rejection while taking policy

You will also get a bonus tip at last to save your thousands of money

[Intro Music]

It is very important for you to understand the meaning of the word TERM

TERM means you will get insurance till a certain age not for your entire life

But you shouldn't worry about it. Because Whole life insurance is a very illogical thing

Its premium is 6-7 times more than TERM insurance and even you don't need it

You should ask a question to yourself that can you define an age for yourself

After that age, there will be no dependent on you. Suppose 65 years

I am assuming that when you will be 65+ Your children will be near 30

And thus your children will be self-dependent at that age most probably

You don't need insurance after the age when no one will be dependent on you

Some people like Whole Life Insurance but it is illogical

You just need to define the age when no one will be dependent on you

So, for maximum people, 65 is a good number

But an interesting point here

If I check the difference between a premium of 65 years and 75 years

It can be a difference of only 10 rupees or it can be like 50-100 rupees

If you find such a little difference while taking policy then you can go for 75 years of insurance

Let's know that why term insurance is best when we talk about life insurance

Because you can get a very high cover in term insurance like up to 25X of your income

If you earn 5 lakh in a year then you can easily get 1 crore insurance

If your income increases in future then you can top-up it easily

The premium for this 1 crore insurance depends on your age

Like my age is 25. So, most companies charge 800-1000 per month premium

This is its most beneficial point. If you take it when you are young

Your premium will be accordingly low and it will never increase

My premium will be near 1500-1600 if I take 1-2 rider with it

Spending only 15,000 monthly for 1 crore insurance is a very good deal

You have to pay 6-7,000 premium for the same 1 crore insurance for Whole life which is illogical

If you have more disposable income then invest it instead of taking a whole life insurance

If you did some research about insurance then you know about ULIP and Endowment Plan

Don't get attracted to these plans. These are the worst investment options.

Because these are just the opposite of term insurance.

You have to pay a high premium and you get a very low cover

For example, You have to pay 50K per year for a 5 lakh cover

Is this 5 lakh enough for your family after you will have gone?

You get 1 crore cover in term insurance in only 15K annual premium

But you only get 5 lakh cover even after paying 50,000 per year as a premium

Agents have a good argument to fool people. They say that some portion of the money will be invested

And you will get 10-15 lakh after 10-15 years but that is completely wrong

You should stay away from these options because you can't compromise with cover

If you need 1 crore insurance then it is a must And ULIP and Endowment can't give you that

Secondly, if you are considering the investment part then ask a question to the agent

Then tell me the yearly return which I will get on my investment

They can't tell you because that rate can't even beat inflation

This is neither a good investment product nor a good insurance product

Hopefully, you have understood the importance of term insurance

Let's know that how can you choose the best insurance company

First of all, you have to see the claim settlement ratio

Suppose the company passed 98 claims out of 100 claims and rejected 2 claims

Then claim settlement ratio will be 98% which is a good number

But how will you check the claim settlement ratio or CSR

This data can be found in the IRDA report But some good companies have a good CSR

Like 97.55 or 98% or up to 99%. So, companies proudly show it on their website

Or you can check this data on an aggregator like Policy Bazaar

The data I am going to show you are taken from the IRDA website

These are the top 10 companies with the CSR more than or equal to 97

There are some big names like Kotak, ICICI, HDFC, MAX LIFE, etc

But every company keeps its CSR high because customer check it first of all

That's why you need to check the Amount Settlement Ratio

Again same example, the company passed 98 claims out of 100

Suppose the total value of those 100 claims were 10 crore rupees

And the value of each rejected claim was 50 lakh rupees

Thus company passed the claim of 9 crore rupees out of 10 crore rupees

Thus the amount settlement ratio is 98% here. This means that

Showing a high CSR is very easy for companies

They can pass small claims rejecting the big claims

This will show its CSR high but the amount settlement ratio will be still low

So, you should check the amount settlement ratio which can found in IRDA annual report

But this report consists of 200+ pages and there is a new report every year

So, you don't need to read 200+ pages report every year

I have prepared a simple EXCEL file which contains entire useful data from IRDA Report

I will keep updating that report every year You can download it from the description

It will be latest updated whenever you will download it

On basis of the amount settlement ratio, these are some good companies

There are some big names like KOTAK, HDFC, ICICI, MAX LIFE, etc

I have only selected companies with 90% or more than 90% amount settlement ratio

TATA has topped the list with the 96% amount settlement ratio

I will check all details only for these top 10 companies now rejecting the rest of all

Now you have to check the claim rejection ratio

When companies get a lot of claims, there are claims which are under process

Those claims are not shown in the settlement ratio

This is equally important to know that how many claims are rejected by the company out of 100

I will only select the companies with claim rejection ratio below 1%

When I checked the claim rejection ratio for these 10 companies

Then I rejected BHARTI, AEGON, AVVA, MAX LIFE, ICICI, KOTAK and ADITYA BIRLA

Because these companies have more than 1% claim rejection ratio

Now, we have LIC, HDFC, and TATA AIA I will also check their AUM

AUM means Asset Under Management. That means how much money is managed by a company

Because a company with high AUM is much capable in passing the claims in time of crisis

If I check the AUM of these companies

Then LIC has more than 20 lakh crore which is equal to Pakistan's GDP

[Remember World Cup 2019]

HDFC has 37 thousand crore rupees and TATA AIA has 16 thousand crore rupees

So, all three companies have a good AUM So, we don't need to worry

Now, you have to check the Solvency Ratio

It means that how many times assets the company has compared to its liabilities

This should be 150% minimum according to the rules

So, every company has to manage at least the ratio of 1.5

So that the company would have enough money to pay in any future crisis

This ratio changes every quarter and this is not much important

As they have to follow the rule of maintaining the ratio of 1.5

But a higher ratio is much better. IF we see the solvency ratio of these companies

Then LIC has 1.6, TATA has 2.68 and HDFC has 1.88

All three companies have good solvency ratios but still TATA topped the list

Now, we have LIC, TATA, and HDFC as top 3 companies

Let's talk about LIC which is India's biggest insurer whose AUM is equal to Pakistan's GDP

Public trust on LIC. But when it is about the trust

Public sector companies have also built trust among people

Because companies know that people are becoming more educated with time

So, they maintain their ratios to attract more customers

Companies keep themselves away from unethical practices and pass more claims as possible

Secondly, our pick HDFC and TATA are trusted names. HDFC itself is a big brand.

Although TATA is new in the insurance sector but TATA itself is a trustworthy group

I am rejecting LIC only because its premium is more than double of HDFC and TATA

When it is up to trust, we don't need to worry about HDFC and TATA

Among the HDFC and TATA, I will pick TATA 0:10:57.001,0:11:03.000 Because TATA has a 96% amount settlement ratio but HDFC has a 91%

You will have two options of riders while taking the term insurance

The first rider is Critical Illness in which you take some extra insurance

You will get it only when you will face any critical illness diagnosis

People take it with health insurance but you should take it with term insurance

Because term insurance premium will never increase after you once take it

But health insurance premium increases with your age

That's why you should take the Critical Illness Rider here

Premium will increase depending upon your rider. So, don't be greedy

Avoid the rider like 50 lakh as you already have a health insurance

The second rider is the Accidental Disability Suppose a person had an accident

And he is not able to go to work So, his income will stop in that case

As his family needs support so you can take this rider

You can choose the amount as you wish but your premium will also increase with rider

So, use the logic while taking rider instead of being greedy.

Always ask for T&C of riders while taking any policy from anywhere

As every company has different terms and you should be aware of it

I will suggest you take an online policy which will be cost-friendly

Although agents say you that your claim will not passed in online but it makes no sense

Now, let's discuss why your claims get rejected even after research

The first reason is improper disclosures As you have to answer some questions

Like do you smoke, do you drink, your medical history

People answer wrong to save the little amount of premium

But at the time of claim, companies investigate every small detail

The company can reject your claim if it finds that you gave improper disclosures

As they have the right to reject your claim

So, don't give wrong information to save the premium

If you smoke then tick YES If you drink then tick YES

You should disclose even a little medical condition if you have

The second reason can be your inaccurate documents

Suppose you submitted young age then your actual age to save the premium

The company can reject your claim in that case.

So, all documents submitted by you should be correct.

These were the two noticeable points so that you don't face claim rejection in future

Let's talk about the bonus tip which companies don't want you to know

We have 2 options while taking policy Limited Pay and Return of Premiums

Limited Pay means you have to pay the double premium for the next 10 years

After 10 years, you don't need to pay any premium for your entire policy period

Return of premium means you have to pay a double premium every month

If you are still alive after policy ends, you will get the entire premium back

Due to two factors - Fear and Greed, you take wrong decisions many times

Insurance is just a single part of your personal finance. You also have to invest in

Other options like mutual funds, stock market, FD, PPF, etc

While taking the insurance, we just focus on our death

Like what benefit we get in case of death or if we don't die

That's why we pay the double premium than what we should actually pay

Instead, we should invest our extra money to create wealth

We just think about our death while taking insurance

But we should also focus that should we need wealth or not if we don't die

so, you should ignore these two options as my opinion

The company will invest the double premium charged by you but you will not get the return

So, you should invest that extra money at your own and create wealth

I hope you will like this video Please share the video

Especially share it with the new salaried employees so that they can choose the best insurance

Let's meet in a new video Thanks for watching,,,,,,,,By