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What is Term Insurance Scoring and Ranking Model?

13 January 2025 3 min read
What is Term Insurance Scoring and Ranking Model?
Term Insurance

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:

  1. 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.
  2. 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.
  3. Financial Ratios: Examines the insurance company’s financial stability through key metrics such as the solvency ratio, persistency ratio by number, and commission ratio.
  4. 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.
  5. 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:

  1. Visit the Platform: Access the Term Insurance Scoring and Ranking page on the 1 Finance website.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

Please note,

The views in the article /blog are personal and that of the author. The idea is to create awareness and not intended to provide any product recommendations.

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Term Insurance Scoring

Explore top-term insurance plans based on your research

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What is Term Insurance Scoring and Ranking Model?


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