It gives you an indication of how many death claims the life insurance company has approved. It is calculated by dividing the total number of claims approved by the insurer by the total number of claims received by them. This is quite an important factor and the insurers are really competitive about this! The best insurers in the industry have claim settlement ratios in the range of 98-100%. Its best to opt for an insurer with a claim settlement ratio of 97% and above. You can check this number on the insurer’s website.