When one thinks of marriage, his/her parents look for a few basic qualifications in the match.

1. A good family background and their reputation in the society.
2. The individual’s traits - honesty, intelligence, professional qualifications and future job prospects/ earning capacity.

Buying an insurance policy too is truly a lifelong relationship. There are a few characteristics that are a must when one chooses an insurance company.

Some of these are hard facts; and some are softer issues. I have tried enumerating them, though cannot really guarantee how easy it is to get down to the details – just as it is possible for the potential groom to camouflage his true nature.

1. The insurance company must outlive you. The company must be in a position to settle your death claim to your survivors. If you have the slightest doubt in this, a the insurance company, irrespective of how cheap the cover is.
2. The company should have a good image, one that demonstrates that they are in it for the long haul. Their image should convey honesty and efficiency; not that of a lion hungry for prey and increasing their business at the cost of long-term sustainability.
3. It should be able to give you the cover you wish for at cheaper rates. The company should be able to provide better rates to the customers.
4. It should have efficient and experienced people who can invest your money better. Unit linked policies are a rage today. Insurance thus involves active management and growth of your funds as well. Performance of Asset Management Company (mutual fund schemes) offered by the parent company could give you some leads.
5. Their attitude towards sales - are they only concerned with selling their products to meet their targets or do they train their employees and agents well?
6. The quality of their advisors – are they genuinely interested in giving the right solution? The advisor is ultimately the interface between you and the company. He should come across as both honest and competent, and keen to understand your needs before providing an appropriate solution.
7. Issues with rate up - any person whom the insurance company feels is not a standard risk could be dealt with in any of the following manner:
a) Charged extra premium
b) Given a cover lower than what was asked for
c) Postponement of the decision
d) Declined cover

While the emotional angst of not being a ‘standard’ risk exists, one must recognize that the insurance company must act in the larger interest of all its policyholders. Ensuring a lower claim ratio improves the final maturity values of the policies and is ultimately beneficial for you.

Now that you know what you need to look for, go ahead and select the ‘right’ partner for your life insurance – or should one say, insurance for life?

Money Matters Mantras:
1. The Insurance company must outlast you
2. Their product must meet your specific needs
3. It should be come at a cheaper cost
4. Investment track record too plays a role
5. Honest and knowledgeable consultants will provide much comfort
6. A lower claim ratio is more vital than no rate-ups

Thanks to Author: Lovaii Navlakhi