5 Things to Consider while Choosing an Insurance Plan

When it comes to selecting an insurance provider, it is all about placing your trust in the insurer with your hard-earned money. In a country without social security, the insurance firm you choose is critical in safeguarding your financial future and that of your family. It is critical, therefore, that you make an informed and cautious choice when selecting an insurer.

Unfortunately, in India, the process of purchasing insurance is still not accorded the respect it deserves and is viewed as just another routine financial transaction. To help you avoid making a critical error when selecting an insurer, here is a list of five things to look for when searching for the ideal insurance firm.

The cost

While you cannot place a price on your life, when it comes to choosing an insurance company, you must perform some math. A smart suggestion is to evaluate the costs and various charges associated with the policy or policies you are interested in using the web aggregators that are readily available today. Ascertain that the insurance business you choose offers a pricing structure that fits your financial situation and does not exceed your budget.

Also Read: Factors which Affect Your Home Loan Eligibility


While an insurance company may use fancy advertising, you must be a careful investor and determine the company’s longevity in operation. When selecting an insurance company, you must seek for a firm with a proven track record. Consider factors such as the claim settlement ratio, which is available on the Insurance Regulatory and Development Authority (IRDA) website, and insurer ratings, which are available on the websites of the respective companies, the efficacy of the online platform (if you wish to purchase your policy online), the company’s network, and its reach.

If you are considering an investment plan such as a Unit Linked Plan or ULIP, it is critical to conduct an online performance check on the fund. Keep an eye out for companies that offer ULIPs that have a consistent track record of giving consistent returns.

Size does matter.

When it comes to picking an insurance carrier, it all comes down to

the brass stacks. Examine critical metrics such as total assets, market share, and growth ratios in new business premiums to determine the insurer’s financial ability to pay claims, if any are necessary.

Superiority of service

This is also a critical issue to consider while selecting an insurance company. You must make a decision based on the insurers’ approach toward potential clients like yourself. Are they available to respond to your questions through the phone or in-person? Are they patient in their approach, or do they appear to be too preoccupied to make a sales presentation without first gaining a grasp of your financial situation? These are only a few of the considerations you should make before making a final decision.

Complaints and testimonials

While this factor is sometimes overlooked, it makes sense to keep an eye out for the number of complaints or negative reviews a business may have. While some of it may be fabricated and manufactured by competitors, a flurry of comparable complaints about the same organization should not be dismissed. This should provide you with a good notion of which companies to consider and which to avoid like the plague.

Choosing an insurance company today may not be the simplest undertaking, given the abundance of insurers available. If you’re having difficulty selecting an insurance provider on your own, enlist the assistance of a trustworthy family member or friend who you know has the financial acumen to make the best option for you.

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About the Author: brad

Brad is lead editor and content writer at HubCrave, and has invested in online properties since 2021. Brad holds an MBA from the University of Dundee and an MSc from the University of Edinburgh.

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