Insurance is the preferred mode of risk reduction by corporations and individuals alike. This is where the loss is transferred to a third party who bears the brunt. There are two parties involved in this agreement, the insurer and the insurance company where the policy has been taken. Insurance policies help all the while - upon death, when one meets an accident, when there is accidental disability and in many other situations. An insurance policy could be for any of these purposes -- health, life, medical, vehicle or general insurance. The duration is decided upon while signing the agreement.
But there are many choices and an astute customer must exercise wisdopm and discretion before choosing a policy. The policy needs to satisfy all the customer's needs and serve the purpose when the time comes. Some of the points that one needs to keep in mind are as follows:
1. What are you really getting - You must analyze the various insurance companies that are available, go through their policies and choose the one that offers the products and services that match your needs, in terms of duration, risk coverage and time taken to reimburse payment.
2. Is the policy writing company financially capable? - The company you choose must have a sound credit standing in the market and should have the ability to cover all the clauses mentioned in the policy on time. If not you will end up spending out of your pocket.
3. How much would the insurance cost - Premium is an amount that the insurer pays to the insurance company at regular intervals during the year till the policy matures. Depending on the policy taken, the premium payable will vary. So compare the options available based on age, term of the policy, the type of policy and the value of the same. Do not compare apples and oranges if both the price as well as the cover is different. Pay attention to details to protect yourself from misleading policies.
4. Reputation and License - One major factor that you must note is whether the company has a good reputation in the market. You can gather this information by talking to friends or colleagues who have policies with the company. It goes without saying that any insurance you buy must be from an approved and licensed company. If the policy is not fully approved by the regulator, you will not have anyone to turn to in case of any problem.