How to Compare Insurance Plans
Choosing between insurance plans can be confusing with so many options available. Here's a systematic approach to comparing and selecting the right plan.
1. Claim Settlement Ratio (CSR)
The most important metric. CSR shows what percentage of claims an insurer actually pays. Look for CSR above 95% for life insurance and above 90% for health insurance. IRDAI publishes this data annually.
2. Coverage vs Premium
Don't just choose the cheapest plan. Compare what's covered — sub-limits, room rent caps, co-payment, disease-specific waiting periods. A slightly expensive plan with no sub-limits is often better value.
3. Exclusions & Waiting Periods
Every policy has exclusions. Read them carefully. Compare waiting periods for pre-existing diseases (1-4 years) and specific illnesses. Shorter is always better.
4. Network Hospitals
For health insurance, check how many network hospitals are in your city. More hospitals = easier cashless treatment.
5. Renewal Terms
Check if the policy is guaranteed renewable for life. Some plans can be discontinued after a certain age. Lifetime renewability is essential for health insurance.
Common Insurance Comparison Mistakes
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