With so many insurance types and companies out there, buying life insurance can be confusing for beginners. Usually, people look at the insurance plans offered by the company and check customer reviews to make a final decision. But this only depicts a minor part of the picture and is not a recommended way to determine which insurance company is best to purchase a policy.
In this article, we will cover the basic and most important things to consider while choosing the right insurance company so you can make an informed decision based on facts. Whether you need to buy life insurance, funeral insurance, or auto insurance policy, the following factors can help you choose the right company.
Independent insurance agent vs. Agency
Insurance companies, brokers, and agents have their own processes and methods of insurance sales. Sometimes consumers are not sure who the insurance company is and who is the independent agent selling insurance plans. Insurance agents market and sell products of different insurance companies and help their clients find the insurance companies and plans that fit their individual needs. Building good relations with an agent can be a great idea to seek help in the future whenever needed.
Size of the Company
Before you sign an insurance agreement, make sure to check the size and other numbers of the company like total assets, growth ratio and market share, etc. This will help you determine whether the company is financially able to process a claim easily or not. Only choose a company with a large market share that pays claims well and offers an easier claim process.
Don’t just be impressed by the flashy advertisement, but check how long the insurance company has been in the industry. For this purpose, you should consider things like claim settlement ratio, customer ratings on local directories and financial stability of the company, etc. You can also check their mission and vision statement on their website to get a clear idea of what they are committed to providing.
Plans and Coverage
It is all about what you will pay to the company and what you will get in return. With so many options available these days, consumers believe that insurance products offered by different companies are the same in nature. But the fact is that each company has its own method of risk evaluation. This means each insurance company offers a different range of plans, prices, and coverage based on individual details and the personal circumstances of the customers. So, check and understand the plans and coverage carefully before you consider a company for buying an insurance plan.
Quality of Services
Service quality is another important thing to consider when it comes to choose an insurance agency. You can contact a representative to check the attitude of the insurer towards new customers like you. Do they listen to and understand the insurance needs of customers via call or in-person? Are they flexible and patient in their approach or do they just try to make a sales pitch without understanding the needs and requirements of customers? Make sure to ask the right questions before you make a final choice.
Customer Reviews and Complaints
Just like we check online reviews before purchasing a smartphone, the same should be done when buying an insurance plan. You can check the official website of the company or social media profiles to read customer reviews. Along with checking reviews with five-star ratings, check the company for negative reviews and complaints as well. Going through the reviews carefully will give you an idea about the insurance products and services of the company you consider. Online insurance comparison platforms are also available that can be used to compare insurance companies and plans to make the right choice.
The Bottom Line
Buying insurance is a significant investment and you should do proper research to choose the right company to shake hands with. Buying a plan just on a price basis could end up hurting you in terms of less coverage than your needs. This is the reason, you should consider all the above-mentioned things and factors to make the right company for purchasing an insurance plan.