Comparing Life Insurance Online
It is always considered prudent to get several quotes before making a purchase. In the case of personal insurance there is more to just comparing the cost of a few different polices from various companies. In the case of health, income and mortgage protection and trauma there are significant differences in how a policy pays out and what it will pay out for.
There are three important factors to consider with comparing quotes of personal insurance policies.
Features and Benefits of Income Protection
Not all polices are created equal, some offer basic cover with limited features and benefits while others are more comprehensive. Naturally you would expect a basic insurance policy to cost less, and in the event of a claim it may not pay out or pay out less. For that reason it is important to compare not only the price but how a policy rates against another. The reason why one policy may cost more is because it offers better cover so it is important to compare not only quotes but what the policy offers.
Insurance is just like any other product and service - you get what you pay for.
Insurance is unique in the sense it is not a one off payment that you make once in a lifetime. Personal Insurance is a series of regular payments made over several years to protect you in the event of a claim. Be careful of discounts offered in the first year in order to get business as in the second year the cost can increase significantly. Every year an insurance company can review their premiums and increase the cost, a policy that may cost the least for your age group could become the most expensive in the market in ten or fifteen years’ time.
An insurance policy is a promise to pay, so the reputation, approach to paying claims and financial strength of a company are important factors that should be taken into account. Attributes such as reputation, claims approach are subjective attributes however they are important aspects to consider. Not all claims are black and white; inevitably there are occasions when a successful claim could come down to the discretion of the insurance company. How a company chooses to apply their policy wording might make the difference to a claim being paid so their reputation to meeting not only their obligations their attitude to claims is crucial.
All New Zealand all insurance companies are required to disclosure their financial strength rating to existing and potential clients and report to the Reserve Bank. Ratings reflect the financial stability of a company expressed as an alphabetical rating, the higher rating e.g. ‘AA’, being superior, to a lower rating e.g. ‘C’ (a higher risk of default).
No one wants to spend all their money on insurance but it is important to find out what an insurance policy covers and who stands behind that promise to pay. There is more to getting the best deal on an insurance policy than getting a few quotes, you need to take into account what a policy offers and what it pays out for.
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