It is important to pick an insurance plan that fulfills an individual’s insurance requirements as well as fits in the budget. However, one should not be influenced by low premiums while buying the insurance plan he/she should thoroughly research the insurance company and must identify their insurance requirements before buying a life insurance plan.
There are a lot of life insurance companies to opt for here are some factors you should consider before choosing a particular insurance company:
1. Claim Settlement Ratio: The Claim Settlement Ratio or CSR of an insurance company depicts its effectiveness and reliability. The claim settlement ratio of an insurance company represents the number of claims settled in the financial year against the total number of claims. This ratio helps in finding out the activeness of an insurance company in terms of claim settlement. The high claim settlement ratio of the insurance company depicts the dedication of the insurance company in terms of claim settlement. This represents the loyalty of the insurance company towards its customers. An insurance company’s claim settlement ratio is reviewed by the Insurance Regulatory and Development Authority (IRDA).
2. Customer Care Service: Customer Care Service is an important factor to be considered while purchasing an insurance plan. A person should always choose an insurance company that provides good quality customer care service. While purchasing a life insurance policy, a customer should always keep in mind that there is the availability of 24×7 customer care service to resolve all of their queries and provide assistance when needed.
3. Availability of Riders: Riders are additional benefits that an insurance company offers at the time of purchasing the life insurance plans. They are purchased with the plan increasing the premium and they enhance the life cover as well. A person should always ensure the insurance company offers riders or offer an option to add riders to the insurance policy. Some of the common riders offered by the insurance companies are Critical Illness Rider, Accidental Death Benefit Rider, Accidental Total or Permanent Disability Rider, and Waiver of Premium Rider. With these optional additional riders being offered a person can make better decisions by choosing the best plan and rider offered with it.
4. Persistency Ratio of the Company: The persistency ratio of the company depicts the number of policyholders who have renewed their life insurance policy with the same insurance company. It is the ratio of the total number of policyholders to the number of policyholders who renewed their policies. The persistency ratio of the company represents the satisfaction of the consumers with the insurance provider. An insurance company’s persistency ratio is kept under observation by the Insurance Regulatory and Development Authority (IRDA).
5. Feedbacks and Reviews: Generally an applicant does not pay attention to the feedback and reviews that an insurance company receives from the consumers. One should always go through the feedback/reviews of the company and look out for the complaints/bad reviews. This should give the applicant an idea of which insurance company is better than others and if the insurance company should be opted for or not.