- Date : 04/05/2017
- Read: 2 mins
When planning to buy a policy, it is important you know your options, and compare the policies on parameters like premium payable, sum assured, tenure and riders so that you can zero-in on the policy that best matches your requirements.
In a world, where people research and compare modest purchases like baby diapers, committingto a long-term financial product like insurance without sufficient research is rather foolhardy.
This is because insurance does not follow the one-size-fits-all approach. Your needs as a life assured will be very different from someone else’s. In order to meet these needs, insurance companies offer various plans with useful features and benefits. When planning to buy a policy, it is important you know your options, and compare the policies on parameters like premium payable, sum assured, tenure and riders so that you can zero-in on the policy that best matches your requirements.
Here are a few tips to evaluate the life insurance policy you might be considering:
- Cost: Being cost effective is good, however, cheapest does not mean the best.
- Convenience: The ease of buying is very important. The facility to learn, compare and pay online is an added advantage.
- Coverage: A healthy base sum assured and the availability of popular riders is desirable.
- Customer Service: This is the key differentiator between erstwhile life insurance companies and some of the private insurance providers in India. A highly resourceful website, a 24x7 helpline, a relationship manager and comprehensive email support are the key touch points you should look for.
- Claim Settlement Record: This is a key indicator about the insurance company’s efficiency while processing claims. The Insurance Regulatory and Development Authority of India (IRDAI) has stipulated that for cases where investigation is not required, insurers are expected to settle a claim within 30 days of submission of complete documents. However, with increasing instances of frauds, insurance companies have become extra cautious while examining each claim.
- Company Credentials: The insurer’s ability to honor a claim is based on its financial position. Do your research about the fundamentals of the insurance provider before buying a policy. The IRDAI has enough safeguards to ensure that the insurers are adequately funded. Rating agencies like ICRA and CRISIL also rate insurance companies on factors like claim-settlement ratio, financials, etc.
Click here to learn more about the different types of policies and to compare features and benefits.