Whatever insurance policy that you buy, you have to pay a premium for the same. Premium is the consideration that is paid for the insurance contract. It is like the cost of securing the coverage. The premium for insurance policies is not the same across insurance companies. Every company has its own pricing policy determined by its actuarial department. As such, similar coverage benefits are available under different plans at different rates. That is why it becomes important to compare insurance quotes before selecting a plan.
Thanks to the online marketplace, this comparison has become simpler and more convenient.
There are different insurance platforms that help you compare insurance quotes before buying the policy. SecureNow is one such example. In these plans, you can check the insurance quotes, coverage details and other aspects of the plan. Thereafter, you can see which insurer is offering the best deal and pick the plan.
Additional Read: Get to know about Tax implications of Group Health Insurance
Comparing, however, is an art. There are different factors that you should keep in mind when you compare insurance quotes to find the right plan. One must follow the below procedure before finalizing an insurance plan –
Compare the coverage features in the insurance
Simply comparing the insurance is not wise. Plans that have lower coverage benefits would have lower premiums. Does that mean that such plans are ideal?
Always compare the coverage features together with the insurance price. Choose a plan that offers the required coverage benefits, the more the merrier, at the most competitive premium rates. Such plans would be the best and the most suitable plan for your needs.
Compare the coverage restrictions within the insurance
There might be coverage restrictions, limits, sub-limits and deductibles under the plan. Such restrictions are applicable to different coverage benefits and they restrict the claim. Find out such coverage limitations. Plans with higher limitations would mean higher out-of-pocket expenses. Even if such plans have lower premiums, they would not be ideal.
Choose a policy that has minimal restrictions and allows a wider scope of coverage. Even if the premium is a little higher for such plans, it would be lower than the out-of-pocket expenses that you might incur at the time of claims.
Compare the level of coverage
The next parameter to assess is the level of coverage, also called the sum insured for general insurance policies and the sum assured for life insurance plans.
The premium is directly proportional to the coverage level. Higher the level higher would be the premium and vice-versa. However, this does not mean that you should skimp on the coverage. A low coverage means the possibility of out-of-pocket expenses and limited financial protection.
So, check the level of coverage offered by a plan at a given level of premium. Choose a policy that allows optimal coverage at affordable premiums.
Comparison of CSR (claim settlement ratio) of the insurance company
The claim settlement ratio, also known as CSR, is the total percentage of claims that the insurance company has settled against the total claims made on it in one financial year. The CSR is published by the Insurance Regulatory and Development Authority of India (IRDAI) every year. Check this ratio because it depicts the claim settlement policy of the insurance company.
A company with a high CSR is a better choice as it shows that the company settles most of its insurance claims. If the insurer with a high CSR has a higher premium, the additional premium is justified given the higher probability of claim settlement that you can get in exchange.
Compare the claim settlement process under different insurance companies
While there is a standard claim settlement process under different insurance plans, insurance companies seek to simplify the same. They might offer quick turnaround times, handholding, dedicated claims management, an AI-enabled claim process, etc. so that you can get your claims settled quickly and without hassles.
Check the claim settlement process of the insurance company when comparing insurance premiums. Choose an insurer that offers the easiest process so that you don’t have to fret at the time of claims.
Comparison of insurer’s reputation
Checking the insurer’s reputation can also help you in choosing the right insurance provider for your needs. A company that enjoys good reviews and customer satisfaction is preferable because the company is said to have good customer service. The company can help you with your policy, its servicing, claims and renewals whenever needed. Also, check the financial stability of the insurer so that you can pick a stable company for your needs.
Comparison of discounts
Almost all types of insurance policies offer different types of discounts that help in lowering the insurance price. Hunt for these discounts. When comparing premiums, also compare the discounts that the plan offers. Higher discounts mean higher savings and it would ultimately reduce the premium outgo.
Many policyholders tend to compare only the insurance premium without considering the aforementioned factors. This can prove counterproductive because a low premium might not necessarily guarantee the best plan and the best coverage. To find the best policy, you need to factor in the aforementioned points as well.
Compare insurance plans on the basis of all these points along with their premium quotes. Then choose a justified policy on all these parameters and charge a competitive premium. If all the aforementioned boxes are ticked off, a higher premium is also justified. It would mean that you are buying the most suitable plan which offers the best coverage benefits as well as the most efficient claim process. If you have to pay a little higher premium for these benefits, so be it.
So, when buying an insurance plan, don’t be in a hurry. Do your homework, take your time and then compare. Choose the right platform which has a tie-up with all leading insurance companies so that you can check out the best insurance plans on the market.
SecureNow is one such platform that allows you to compare the leading insurance policies, whether you want life insurance or general insurance. So, visit the platform, choose the type of insurance that you want to buy, enter your coverage requirements and check out the different plans and their premiums. Compare to find a suitable policy and then buy the plan online.
Comparing can be fun and cost-effective but only if you know how to do it right.