Selecting the right term insurance plan is a critical step in securing your family’s financial future. To assist individuals in making informed decisions, 1 Finance has developed a comprehensive term insurance scoring and ranking system. This system evaluates various term insurance plans based on key parameters, providing a clear and unbiased assessment to help you choose the most suitable policy.
Understanding the 1 Finance Score
The 1 Finance Score is a composite score out of 100 assigned to each term insurance plan. This score is derived from a weighted average of several critical parameters, each encompassing specific sub-parameters with designated weights. The primary parameters considered in the evaluation include:
- Claims Experience: This parameter assesses the insurer’s claim payout history, considering factors such as the Claims Settlement Ratio (CSR), average claim settlement time, and the number of complaints per 10,000 claims registered.
- Product Features: Evaluates the value and benefits you can derive from the policy and how these align with your requirements. Sub-parameters include the length of the policy term, the amount of coverage, additional riders, and flexible payment options.
- Financial Ratios: Examines the insurance company’s financial stability through key metrics such as the solvency ratio, persistency ratio by number, and commission ratio.
- Price: Considers the affordability of the policy premium, aiming to offer value for money. A relative pricing method is used, where the most expensive product is scored 0 and the lowest priced is scored 100.
- Brand Existence: Evaluates the insurance company’s longevity or presence in the market as a measure of its brand strength, stability, and reputation.
By analysing these parameters, the 1 Finance Score offers a holistic view of each term insurance plan’s strengths and potential drawbacks, enabling consumers to make well-informed choices.
How to Use the Scoring and Ranking System
To explore and compare term insurance plans using the 1 Finance Scoring and Ranking system, follow these steps:
- Visit the Platform: Access the Term Insurance Scoring and Ranking page on the 1 Finance website.
- Input Your Details: Enter relevant personal information such as gender, age group, and desired sum assured to tailor the search results to your specific needs.
- Review the Scores: Examine the 1 Finance Score assigned to various term insurance plans. Plans with higher scores indicate better performance across the evaluated parameters.
- Compare Plans: Utilise the platform’s comparison tools to assess multiple plans side by side, focusing on aspects that matter most to you, such as coverage benefits, exclusions, and premium costs.
- Make an Informed Decision: Based on the comprehensive analysis provided, select a term insurance plan that aligns with your financial protection needs and budget considerations.
By leveraging the 1 Finance Term Insurance Scoring and Ranking system, you can navigate the complex landscape of term insurance with confidence, ensuring that you choose a plan that offers optimal protection and value.
For more detailed information and to explore the scoring system, you can visit the 1 Finance Term Insurance Scoring and Ranking page.