How to Get an Insurance – A Complete Insurance Buying Guide

Know Insurance Type

Insurance could be of various types. There are life insurances that
cover overall risks to your life while health insurance covers risk for life
and cost incurred on hospitalization. Likewise, car insurance covers the risks
involved with your car. With travel insurance, you can get a cover for your
travel. So, if anything goes wrong while you travel your loss would be covered
by your insurance company.

Choose the Right Provider

While life insurance is provided by most companies, there are certain
insurances like car insurance and property insurance that are not offered by a
life insurance company. So, you should make sure that whether your company is
offering the kind of life insurance you are looking for. The list of companies
offering such services can be found on the insurance regulatory authority
website.

Choose the Right Policy

As you are buying insurance that could be liable in the case of loss of
life, risk, and damage to property then you should choose the right policy.

If you are buying a property or car insurance, you should know whether
it is meeting your requirements or whether it can be upgraded depending on your
changing requirements.

If you are unmarried buying life insurance or health insurance you
should ask your insurance provider whether your spouse and kids can be added to
this policy later. 

You should go through the various policies available and compare them.
If you find it difficult to do it on your own then you can take guidance from
an insurance advisor. Most insurance providers have their in-house advisory
teams. These professionals have a deep understanding of various schemes their
company is offering.  

Compare the Costs

Cost is an important consideration while choosing the right insurance.
Make sure if the prices paid are really worth it. The best practice is to
invite quotes from different companies for the same type of insurance. This
will offer you several options. People take the decision to buy insurance based
on different considerations and not solely on the cost. But the cost is still
an important consideration.

Claim Settlement Ratio

While choosing a company for buying insurance,
you should also consider its claim settlement ratio. The claim settlement ratio
is expressed in percentage and it may be obtained from the regulatory authority
website. The higher the claim settlement ratio, the better it is. Imagine the
situations when something bad happens to you and your insurance provider is not
processing your claim or denying your claim. If it happens the entire purpose
of buying insurance will get defeated. Don’t ever compromise over claim
settlement ratio while buying insurance.