Best Practices – Evaluating The Needs And Choosing The Right Insurance

As you have seen, the insurance cove that we buy can be classified into general insurance and life insurance products. When investing in these policies, we need to find out some best practices about each. Let’s look at the best practices or the common norms of the life insurance policy and automobile insurance cover.

Let’s start with the life insurance policy. When buying a life insurance policy, you need to take into account:

– Your needs and financial goals: The life insurance policy you buy must be in sync with your financial needs. Any life insurance policy must provide a term plan at a low premium.

– The different policies offered by various companies: Do a market research on the similar insurance cover being offered by various insurance providers. The term insurance offered by different providers varies in the minimum sum assured, the premium amount and maximum tenure.

– Your Insurance Adviser: Your life insurance portfolio is designed by your insurance agent. They should be well-versed with different facets of financial planning. Also, they should be able to provide appropriate advice on which insurance policy to buy, assess when you need an additional insurance cover, and other such matters. It is therefore important to select your insurance adviser wisely.

Next let’s look at some guidelines for selecting the right auto insurance cover. To buy the right car insurance, you need to:

– Visit your state’s insurance department Web sites: Each state has an insurance department, which publish “consumer complaint ratios” of various insurance companies that fall under that state. In case, you are unable to find such report for or state, you can go through a similar report published by other states in your region. This report will help you screen prospective insurers.

– Listen to the body shop owner’s recommendations: Local Body shop owners come in regular contact with the insurance companies and can provide a valuable insight into working insurance companies. They know the companies having flawless insurance claim process, which ones use aftermarket parts, in place of genuine original equipment manufacturer (OEM) parts, to cut insurance claim costs.

– Check the J.D. power ratings. J.D Power Associates collect data from individual investors and rate them based on coverage options, price, claims handling, satisfaction with company representatives and the overall experience. These atings provide you an insight on the credibility of different insurance providers.

– Check the insurers’ financial strength ratings. As a final check, study the financial strength ratings of the insurance companies, provided by A.M. Best and Standard & Poor companies. These ratings will help you judge the ability of the companies to honor the insurance claims.

– Listen to your insurance agent: Many insurance companies these days offer you to buy an insurance cover online. However, you can also invest through an insurance agent. The insurance agent has a vested interest in your case and guides you towards a suitable insurance policy.

Posted on: April 17, 2019

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