Choosing the Right Insurance Policy

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Everybody wants to save, at some point in their lives. Some are able to do it sooner, and for some, it remains a lifelong goal; either way, it is good to have the intention. When you finally do, you will be faced with a lot of options from many an insurance company selling you various types of plans, all sounding too good and attractive, and you should not shy away from them. Insurance plans are good, if you just know which one is the right insurance plan for you, and if you choose the right company. Easier said than done, you might be thinking, but there are actually ways on how you can increase the probability of getting the right insurance plan from the right insurance company.

First, define how much you will be saving – this can be an annual amount, saved once a year (it can be a big bonus you receive once a year only), or a monthly amount (usually the case for the working force). Either way, you need to define how much you will be able to set aside so you do not end up with an insurance plan you can not afford, and which you might just end up losing in the near future, simply because you cannot afford the premiums. Then, consult the insurance professionals in your area, and it will always be advisable to look for an insurance company near where you live so that everything will be easier distance-wise. If you wanted to set up an appointment with your insurance agent, or you need to bring some pertinent documents, I am sure that you would rather walk (if possible) than drive for a long time just to get there.

Now here comes the crucial part – how do you choose which insurance company to engage with?

There are some indicators of a good insurance company, and one of which is the length of their existence. If an insurance company has been around for hundreds of years, they must be doing something right, right? It will also be a good idea to look at the insurance company’s financial figures such as annual income and revenues for the past years, assets and liabilities, number of active policies, and payouts made. This may sound like a lot but you can actually view all of this information from the insurance company’s website or from their annual report, usually downloadable from their website. Some insurance companies even publish sustainability reports which tell you their strategies and performance on the issue of environmental, social and economic sustainability. Sustainability reports also give you a glimpse on the values of any company. If you notice that their sustainability programs are focused on protecting the environment, then you can safely assume that this company values the environment a lot. It might be good to get an insurance company whose beliefs or values are not in clash with yours.

Of course, one good source of information when choosing an insurance company is a plan holder whose opinion you trust. A real-life plan holder can tell you this insurance company’s performance when it comes to customer service, how they deal with their customers. He or she might also have an idea or might have already had an experience in making a claim against a policy and of course you would want to know if this insurance company is easy to deal with or not. Many insurance companies who have been very friendly at the start may turn to be nasty or stubborn once you are making a claim. Remember that these are just friendly, precautionary advices, not usual occurrences.

Once you have thoroughly done your homework by researching everything properly, getting that insurance policy should be a walk in the park for you. After a couple of years, you can relax and enjoy while your investment works for you, and you can be assured knowing that your older years are already taken care of, and that of your loved ones, too.


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