7. Providing information

You must provide the correct information about you and your family in the insurance application form. This declaration form becomes the proof of your good physical and financial condition. If not so the case and if you conceal any improper health condition or hide about any other insurance of yours then you may have to face severe consequences to get back your insurance cover. An SBI appointed Actuary says, Sanjeev Pujari says, “There are agencies that can dig out information by talking to neighbours, colleagues, acquaintances, even family members of the decreased.”

8. Claim settlement ratio

This is a ratio of the number of claims settled with respect to claims received. This claim settlement ratio is an important factor to consider before opting a life insurance because every insurer will love to collect premiums but few insurers will feel the same about claim payments.