Don’t buy a term plan before watching this video | CA Rachana Ranade

"Thumb rule is lower the better. Lower waiting period better it is going to be for us."

"Ideally lower the survival waiting period better it is going to be."

"If it is this type of policy and this type of rider then what will happen is that 1 CR is the basic amount but 10 lakh will be an additional amount so 10 lakhs will be paid right away and in our example if the person were to die after 2 years how much will be paid out entire one CR will be paid out"

"In case of a terminal benefit as the name itself suggests terminal there are great chances that the person may not survive for a longer term, in that case the insurance company says anyways you may not survive for a longer term we are ready to to pay out immediately whatever is your claim amount"

"The only biggest catch here is that insurance company says that we will pay out this claim only if the doctor gives us a certificate that the person will die within next 180 days and generally the do I mean generally very few doctors would give out certain such certificates and that is the reason why chances that these claims will be settled are comparatively lower"

"If the number of complaints is greater than 20 greater than 20 what 20 per 10,000 claims settled then ideally it is time to reconsider your insurer"

"Overall size of the insurer overall activity level of the insurer obviously if it is higher I can say that more more and more people are trusting that insurer"

"Higher the better. Now let's take another example for ASR or the amount settlement ratio so assume that in the whole year just for simplicity of calculation only 1 lakh rupees worth claims were submitted same in this case one lakh one lakh with insurers A and B. Now out of one lakh let's say 70,000 rupees was settled here and here 90,000 claims worth so 90,000 worth the claim was settled so obviously which company is better this insurance company is better because they are settling more amount as compared to the previous company, so here also what is the thumb rule higher higher the better"

"Ideally people should top up their insurance policies with what nominal amount with at least the amount of inflation right every single year inflation your expenses are basically going to increase by the inflation percentage typically you can say somewhere around 5 to 6%"

"Possibility number two there could be certain insurance policies which may say that every single year we will top up your overall policy amount your some insured amount, if you have comparatively less time if you don't want to get into intricacies the second option is always better."