The increasing prevalence of illnesses, along with the rising costs of medical treatment, has underscored the essential nature of health insurance plans. In India, there are numerous companies providing a wide range of excellent health insurance options. Each of these plans boasts its own set of unique selling points that distinguish it from the others. Given this situation, if you are in the market for a health insurance plan, the sheer number of choices available can be overwhelming. In this blog, we are going to embark on a journey to explore 10 factors to consider when choosing an insurance company.
1. The company’s reputation
Thoroughly researching a company before committing to its services is of paramount importance. The internet has greatly facilitated access to information about any company. By searching for online reviews and feedback, individuals can acquire valuable insights into the company’s performance and reputation.
The primary objective in researching a company should not be limited to identifying those with exclusively positive reviews. Instead, it is crucial to pay close attention to negative feedback and gain an understanding of the specific issues that dissatisfied customers may have encountered with the insurance company. It is indeed one of the 10 factors to consider when choosing an insurance company.
2. Legal Accreditation
One of the 10 factors to consider when choosing an insurance company is legal accreditation. Opting for an insurance company with government accreditation and recognition is of paramount significance. Accredited firms typically demonstrate a stronger commitment to adhering to established rules, regulations, policies, and guidelines in contrast to their non-accredited counterparts.
Government acknowledgement signifies a heightened level of accountability and adherence to industry standards, instilling greater confidence in policyholders regarding the company’s reliability and unwavering dedication to upholding these norms. Consequently, this solidifies the overall trustworthiness and credibility of the insurer.
3. Financial stability
Evaluating the financial stability of an insurance company is one of the 10 factors to consider when choosing an insurance company, given past instances of insurers facing difficulties, which can place policyholders in precarious positions.
- Such scenarios can have severe repercussions for businesses. Therefore, conducting a comprehensive financial assessment of an insurance provider before investing in their insurance products is imperative.
- A reliable approach entails acquiring a copy of the company’s current financial statement and closely examining key indicators, including profitability and growth rates over the years.
- Moreover, there exists a wealth of online resources and rating services that offer valuable insights into an insurance company’s financial strength and stability. These resources aid in making well-informed decisions and serve as a protective measure against potential risks.
4. The best time to get life insurance
The best time to start a life insurance policy is during one’s youth and good health, as this typically results in more affordable premiums compared to when one is older. Purchasing insurance at a young age ensures that premiums will remain at their minimum level.
It’s a well-established practice that men often face higher premium rates than women in life insurance due to the risk-based nature of insurance assessments, with men generally having shorter life expectancies. Therefore, initiating a life insurance policy early is a prudent choice, as it helps prevent the prospect of paying higher annual premiums in the future. Selecting the right time to get life insurance is indeed one of the 10 factors to consider when choosing an insurance company.
5. Policy premium and sum insured
When you invest in a health insurance policy, you are essentially paying a premium in exchange for a specified level of coverage. It’s crucial to acknowledge that the scope and comprehensiveness of this coverage directly impacts the premium amount you are charged.
Therefore, it becomes imperative to thoroughly comprehend the specifics related to both the coverage offered and the associated premium when making the decision to purchase a health insurance policy. This comprehensive understanding ensures that you are making an informed decision that effectively aligns with your healthcare needs and financial constraints.
6. Specific treatments and diseases
Many medical insurance plans include a list of specific illnesses and treatments, and coverage for these conditions typically starts after a specified waiting period. For example, in numerous policies, ailments like piles, fistula, hernia, and others are eligible for coverage only after the initial 2 policy years.
These conditions are commonly referred to as specific diseases. If you have any uncertainty or require clarification about the inclusion of such coverage in your policy, it is advisable to directly contact the insurance company.
Taking this proactive approach ensures that you have a complete understanding of your policy’s terms and conditions, including provisions for specific diseases.
7. Coverage for new-age treatments
One of the 10 factors to consider when choosing an insurance company is exploring the coverage for new-age treatments. Many medical insurance plans include a list of specific illnesses and treatments, and coverage for these conditions typically starts after a specified waiting period. For example, in numerous policies, ailments like piles, fistula, hernia, and others are eligible for coverage only after the initial 2 policy years.
These conditions are commonly referred to as specific diseases. If you have any uncertainty or require clarification about the inclusion of such coverage in your policy, it is advisable to directly contact the insurance company. Taking this proactive approach ensures that you have a complete understanding of your policy’s terms and conditions, including provisions for specific diseases.
8. Find the claim settlement ratio of the company
The claim settlement ratio is a crucial factor to consider when purchasing term insurance plans. This ratio reflects the proportion of cases in which the insurance company has disbursed the sum assured, out of the total number of claims submitted.
For instance, if an insurance company boasts a claim settlement ratio of 95 per cent, it signifies that they have approved and fulfilled 95 out of 100 claims filed. Consequently, it becomes imperative to factor in this ratio when evaluating an insurance company’s capacity to offer financial security to your family in the event of your absence. A higher claim settlement ratio typically serves as an indicator of a more dependable and trustworthy insurance provider.
9. Brand Reputation
When assessing various health insurance providers, it’s crucial not to base your decision solely on premium quotes. The overall reputation of these insurance companies plays a significant role, especially in times of medical emergencies. Therefore, it’s wise to consider both premium costs and the company’s reputation when making an informed choice. Brand reputation is indeed one of the 10 factors to consider when choosing an insurance company.
10. Select IRDAI Approved Health Insurance Company
The IRDAI, also known as the Insurance Regulatory and Development Authority of India, operates as the regulatory authority responsible for supervising the insurance sector in India. Its primary mission is to promote growth and regulate the activities of insurance companies within the country.
Conclusion
Life insurance is a crucial financial tool, and by keeping these principles in mind and conducting diligent research, you can confidently navigate the process of selecting the most suitable life insurance policy tailored to your individual needs, ensuring it provides adequate coverage.