Life Insurance

Home » Insurance » Life Insurance

What is Life Insurance?

Life insurance is a provision to provide financial assistance to the beneficiary of a covered individual in case of the death of the individual. A coverage makes sure that the family of the deceased has some form of financial stability after his demise. The individual must purchase an insurance cover for the same with monthly or yearly premium payments or with an upfront lump sum. Various companies provide insurance coverage options.

Get the Best Insurance Deals in New ZealandChoosing the Right Insurance Company

There are plenty of companies in the market with each claiming to be the best insurance company. Choosing the right life insurance company comes down to a few major factors:

Strength and Stability of the company

A life insurance company has to be still in business when a policy holder wants to get a claim settled. To check out these insurance companies, there are various independent agencies that rate their performance and adjudge the best insurance companies on a variety of parameters. Consulting their reports may lead to finding out how the companies are doing financially. Compare the return their policy holders are getting on their insurances if eligible for any. Opt only for the best.

Claim Settlement History

The primary purpose of a company is to settle the insurance claims of the individuals insured by it. Check the track record of the company and find out what is the settlement percentage of the company. A company with a high percentage of settled claims implies it is accountable for what it promises. Ask around and find the reviews regarding the company.

Products Offered

Different companies offer different types of products across the same category. Compare the products and find out which one suits your needs the most. Learn to read into the fine print. There may be some conditions that are present in an insurance policy of one company but are absent in the insurance policy of another. The less conditional the product the better. Also check if the company allows upgrading, downgrading, and migrating between the policies.

Services and Support

Find out how you can reach the company for queries and questions. Check if they have any offices in local area or in your vicinity. Check if the company has dedicated agents providing services or only third party tie ups. The best insurance companies offer support via phone, email, live chat and video conferencing. Make sure the company has at least a couple of these. Enquire if the company provides a counselling on the right insurance policy for you and if they are willing to entertain you queries.

Specialty and Niche

Some companies offer special policies catering to a specific category of people. Some offer policy covers at less premium costs than their competitors to people suffering from diseases like diabetes. If you have any such related disorder, find out the company that has special insurance policies for the same. Check if they offer you discount for having different insurances from the same company such as car insurance, house insurance etc.

Who should opt for life plans?

Life insurance should be purchased by everyone above eighteen years of age. The objective for buying a life plan might be different across the age groups, but there are different plans available from the best life insurance companies that fulfil the need of all individuals. The life insurance should be purchased by:

  • Singles and young people: They should opt for life plan, as diagnosing a medical condition later in life might make the purchase of insurance difficult. The term plans are most optimum for them.
  • Families: Parents with young children must opt for the term plan, as it secures both the spouse’s as well as the children’s future.
  • Business Owners: Business owners must insure their assets as well as opt for business life plans to secure their business’ future.
  • Senior Citizens: If the senior citizens do not have a secure financial condition, they must have insurance coverage. There are specific insurance plans that cater to their needs.

All individuals belonging to different sphere of life need life plans. It is important to employ services of the best life insurance companies. Some people might have the provision of being insured by their employers. They should consult their offices for the same. Life Insurance helps financially secure the future of a family.

Posted on