Buying
a Life Insurance Policy: The Search for a Satisfied Customer
For most people in this world, buying life insurance policy is the last thing on their mind. And if and when they do
it is mostly for the wrong reasons! Let me list down, in no particular order,
some of the main reasons why people do buy.
It is near the end of the tax filing period.
It is near the end of the tax filing period.
·
Some agent has finally worn
down our consistent efforts to stay away from him.
·
We are impressed by the
advertisement efforts of the insurance companies, swayed by the wonderful
people who live in wonderful houses and generally do little except think of
buying insurance.
·
Some of us buy because it is as
a result of a quid pro quo: for example the bank relationship manager will help
us pass a loan, or swing a deal.
This list could go on - but here is the
killer: the policies that are bought are almost always investment oriented
policies. With little exception the person who has sold it to us has promised
astronomical returns and in the bargain also tugged at our heart strings,
reminding us of our duty to our family and our responsibility for educating our
children, or marrying them off, or what not. Months after purchase, those
promised returns are a mirage and the agent has vanished. Unfortunately for all
of us, the policy contract comes many days after we have parted with our
money. Little wonder that Insurance customers are a dis-satisfied lot.
What then is the solution?
First of all, look at your need. Before you
buy any investment oriented policy, make sure you have enough term insurance. Term
insurance policies have no survival benefit, and are therefore extremely cost
effective. Any person who earns an income and has dependents must have term
insurance. The thumb rule is that the cover should be at least 10 times your
annual income. If you still have spare funds, only then should you consider
investment oriented policies.
No matter what policy you buy, it is
important to beforehand know what you are getting into. If it is a term policy,
price is important, and so is the Insurer’s customer satisfaction score and his
ability and willingness to pay claims on time. If you are looking for
investment oriented policies, in addition to ability and willingness to pay
claims, his past performance, history of bonuses declared, and so on are also
important. You may also want to know if he has a reasonable presence in your
area, and if he is known for sound business practices.
The next step is to look for a good agent
or buy online if that is possible. In another article you will find information
on what to look for in a good agent.
Do a little research, find out all the policies in the market that fit your need, Compare Life Insurance Polices and buy the one that suits you the best. If you know what to
expect, you will not be disappointed.
