The cost factor: Remember to check upon the prices, the hidden or extra costs involved in buying any insurances. The other costs include premium charges, administration fees, mortality charges, fund management charges or rider charges if applicable. Check all the costs covered and ask before hand, as Insurance Regulatory and Development Authority (IRDA) recently has revised the rates of such charges, making insurance policies customer friendly and a good investing option. Check whether policies can be bought online directly rather than buying through agents and saving some amount of money; but make sure you don’t opt for an insurance policy just because it’s available cheap.

Know the insurer: This step involves research. Just the same you do with your clothes and buy from the best brand, buying a policy should be done through a good insurance company. Before approaching check the company for its liability, trust factor, and especially the settlement ratio. The claim settlement ratio is the percentage of claims settled by the insurance companies against the number of claims submitted. Check the company with higher settlement ratio, and don’t be misguided upon attractive offers and low price. To know the company better discuss it with your friends, relatives, colleagues, and people on several social sites and view their experiences with various insurance companies.

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