How To Choose The Best Life Insurance Company?

When it comes to choosing an insurance company, it is about trusting an insurer with your hard earned money. In a country where there is no social security blanket, the insurance company you choose plays an important role in securing your own and your family's financial future. It is therefore imperative that you make an informed and prudent choice while picking the right insurer.

Things To Consider Before Selecting An Insurance Company

Unfortunately, in India, the act of buying insurance is still not given the importance it deserves and it is looked at as just another run of the mill financial action one must take. So that you do not make a crucial mistake in choosing your insurer, here is a list of five things you should watch out for when you are on the hunt for the perfect insurance company.

1. The Price Tag

Of course you cannot put a value on your life, but when it comes to choosing an insurance company you have got to do some number crunching. A good idea is to use the 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 a pricing that complements your financial plan and you do not overshoot your budget.

2. History

An insurance company may put out flashy advertising, but you have to be a discerning investor and see how long the company has been in the business. An established track record is something that you must look for when choosing an insurance company. Look at things like claim settlement ratio that is available on the site of the Indian insurance regulator, Insurance Regulatory and Development Authority (IRDA) and insurer ratings that are available on the websites of the respective companies, efficacy of the online platform (in case you want to buy your policy online), network and reach of the company.

If you are considering an investment product such as a Unit Linked Plan or ULIP make sure you check out the performance of the fund online. Look out for companies providing ULIPs that have a steady performance and are not erratic in their returns.

3. Size Matters

It all boils down to the brass stacks when it comes to choosing an insurance company. Check out the crucial numbers such as total assets, market share and growth ratio in new business premiums to assess whether it has the financial ability to meet your claims, if you need to make one.

4. Service Quality

This is also an important factor while choosing an insurance company. You must take a call based on the kind of attitude the insurers have towards potential customers like yourself. Are they available to answer your queries whether on the phone or in person? Are they patient in their approach or do they seem too busy to make a sales pitch without understanding your financial needs? These are some of the questions you must ask yourself before you make a final choice.

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 a 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.

Conclusion

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 acumen to make a right choice on your behalf.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.