When it comes to choosing an insurance company, it's about trusting an insurer with your hard-earned money. In a country where there is no social security coverage, the insurance company you choose plays a vital role in securing your financial future and that of your family. It is therefore imperative that you make an informed and prudent choice while selecting the right insurer.
Buying insurance can be overwhelming. Definitions, conditions, coverages, exclusions, and endorsements can undoubtedly be confusing and possibly give you a headache. And purchase insurance isn't exactly exciting or fun. When I ask people who their insurance company is, they usually say "I don't know," or they give me the name of their local agent.
Therefore, in this blog, we will discuss all the essential points you should take care of when deciding on the insurance company.
1. Independent Agent vs. Insurance Company
As I mentioned, people are not always sure who their insurance company is and their agent. The task of an independent agent is to find the insurance company that best suits your insurance needs. The insurance company cooperates with an independent agent before and after the sale of the insurance.
2. Price Tag
Of course, you cannot put a value on your life, but you have got to do some number crunching when it comes to choosing an insurance company. The good idea is to use web aggregators that are easily accessible today to compare the prices and the various charges involved in the policy or policies you are interested in. Make sure that the insurance company you choose offers pricing that complements your financial plan and you do not overshoot your budget.
3. History & Reputation of Company
Take a look at things like the claims settlement ratio available on the website of the Indian Insurance Regulatory Authority, the Insurance Regulatory and Development Authority and the insurers' ratings available on the websites of the respective companies, the effectiveness of the online platform, the network and the company's reach.
4. Understand Company's Financial Strength
If there is a challenging claims situation, you don't want to hear that your insurance company can't pay your claim because of its poor financial performance. Therefore, the company's financial strength should be your priority.
5. Complaints and Reviews
One does not pay much heed to this factor, but it does make sense to look out for the number of complaints or bad reviews a company may have. Although some of it may be fake and generated by competition, a volley of complaints of a similar nature against the same company should not be ignored. This should give you a fair idea about which companies to consider and which not to touch with a barge pole.
Choosing an insurance company today may not be the easiest of tasks today, given the plethora of insurers that are there today. If you are having trouble choosing out an insurance company by yourself, take the help of a trusted family member or a friend who you know has the financial insight to make the right choice on your behalf.
Hence, these are the five things you should look after when you have to decide on the Insurance Company for you.
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