If we conduct a debate between people who are in favor of LIC and people who in favor of private insurance companies, I am sure it will go on and on. Both have their own pros and cons. When it comes to pure term insurance, one want to be 100 per cent assured that their claim do not get rejected in any worst scenario. After all life insurance is not about money, it’s about a peace of mind that our loved ones are safe and secured incase we are not here to look after them.
One might be in dilemma which one to select for their life insurance? Whether to go for LIC or to go with private insurer. Various forums / blogs gives different suggestions hence it becomes more difficult to take a decision.
LIC:
Pros
- LIC is having 52 years of experience and a govt of India enterprise, fully trustable all over India.
- High claim settlement ratio.
Cons
- Mostly promoting only traditional plans (investment cum insurance plan) and not term insurances.
- Online term insurance is not yet available.
- Term insurances are more costly (almost double) compare to private insurer.
Private insurer:
Pros
- Online term insurance is easily available.
- Provide high risk cover with nominal premium.
Cons
- Though private insurers are just 10 years old in market, they have occupied 31% of the market shares and rapidly growing.
- Claim settlement ratio is less than LIC, Normally claim settlement ratio greater than 90% is considered as good.
You don’t have to worry for taking insurance from LIC or any private companies because all are regulated by IRDA. Just be honest and provide all information’s correctly. Go for any company that you trust, more or less all are same.
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