So, you have decided to purchase your first-ever insurance policy. In fact, you have even made up your mind about the kind of policy you are looking for. All that is left to do now is to find the right insurance company. Keeping that in mind, here’s outlining the things to note when choosing an insurer.
#1 The charges and prices offered
The first thing you need to do is to check the prices and additional charges on offer. You must have set a budget in your mind regarding the total amount you are ready to spend every month as an insurance premium. Similarly, you have also decided on the type of insurance you want – HDFC Savings Plan or term plan. Now, go to the official website of the insurance company and use their insurance calculator to get an idea about what you will need to spend for a certain sum assured.
#2 The reviews about the services
Nowadays, you can find detailed online reviews about anything, including insurance companies. So, check out what others have to say about the services of the company. Pay attention to the trend of the reviews. Are most people talking about delays in getting the money or other such disputes? Or are the majority praising the promptness of services?
#3 Claim settlement ratio
It refers to the number of insurance claims made in a year to the number of claims settled by the insurance company. For a good insurer, this ratio will be pretty high. In general, a claim settlement ratio of about eighty percent is considered good enough. However, the top names in the business have ratios over ninety percent.
#4 The financial strength of the company
Time for some number crunching! You need to have a fair idea about how well the company performs in the market. Does it have a market performance that can make you depend on its services at ease? Take a look at their market share, total assets, and growth ratio to get a general idea about their financial stability.
#5 Available discounts on insurance premium
Based on the insurance policy you are opting for, companies have a host of discounts on their products. For instance, you might get a senior citizen discount on the premium. There might be special provisions for women. Therefore, be upfront and ask them if there are any discounts available.
#6 Going online vs. relying on an agent
Your experience with an insurance company also depends on whether you are buying the policy through an agent. While there is no harm in buying policies through agents, make sure that you know the agent, or he/she comes with solid references from people known to you. Otherwise, you can also apply for the policy online directly.
The bottom line
If the insurance company ticks all the boxes mentioned above, then you can be assured that you have made the right choice. In case you have any doubts about the products or services, get in touch with customer support to know more.