Life vs Term Insurance: Claim Settlement Depends on Company, Not Policy Type

• Claim settlement ratio indicates approved claims out of total received; a higher percentage is better.
• The type of policy (traditional life vs. term life) does not significantly impact claim settlement ratios; it's the insurance company that matters.
• Most major insurers show claim settlement ratios between 95-99% for both traditional and term policies, with minimal differences.
• Common reasons for claim rejection include hidden medical conditions, wrong information, unpaid premiums, death during waiting periods, and suicide within the first year.
• Honesty during application, timely premium payments, organized documentation, and informing nominees are crucial for smooth claim settlement.