4 crucial factors to consider before choosing insurance policy

However flashy your lifestyle might look today, however healthy and rejuvenated your family, business and home are, an unexpected event can see it all unravel very quickly, leaving you in a state of despair.

The best solution to such trying moments is to have a better, comprehensive insurance policy cover.

According to Investopedia dictionary, insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from damage or injury caused to the third party.

Most insurance policies, whether they cover homes, cars, life, health or other risks, share similar elements in their construction. This has often posed a challenge to many since they find it challenging to fully comprehend the insurance language and whether their hard-earned cash is going to the policies they need most. 

According to Ms Jane Muinde, the head of branch network at Jubilee Insurance, the following factors are very crucial when shopping for a better insurance policy cover;

1. Reputation of the company

It is important  to know in detail the reputation of your preferred insurance policy provider before making commitments. 

To satisfactorily know your preferred provider, try and have proper information on the company profile, brand reputation, financial position, customer service and how first their services are. Find out how they have in the recent past handled claims from other clients and their product flexibility among others.

For instance, if you were to go for a medical cover, ask hospitals and clinics what sort of relationship they have with the medical insurer. Find out their level of relationship whether smooth or worrying. You can also consult friends and other referrals to get their views on the services provided by that medical services provider. 

Market reputation of a provider is a reflection of how well the company provides services to its customers, and is usually a good point of reference when making decisions.

If you realise that the provider has good market reputation, then its obvious it can be trusted in all its dealings.

2. Provider accessibility 

A good insurance policy is one that offer clients peace of mind by saving time and offering solution not when available but when needed. 

It might turn so frustrating to clients when you cannot access your insurance provider at the time you need them most i.e during emergencies.

Before you come up with a deal, find out how your provider will act when you are in such situations that demand their intervention. Investigate which medium of communication attracts best response. 

It is important to gather information individually from sources that have interacted with the policy provider before rather than taking short cuts like reading the company website alone and lying to yourself that you are satisfied with the information displayed. Go beyond this because some company’s may not after all update the publicly available information when their relationships change.

3. Costs and Services

The dictum ‘cut your coat according to your shirt’ is very much applicable here. Other than considering the flexible features like, terms of policy to mature, mode of payment, any discounts for being of standard life or good health, age and sex, it is very crucial to satisfy yourself that the cover you are about to take best fits your lifestyle in-terms of cost and services offered. 

Sometimes, a company may give you an inferior cover at a low cost, which fails to meet your needs. On the other hand, a high cost cover is also not the same as a high quality cover.Take your time and ensure that you are getting the most value for your money. 

Dont go for what you will not pay for or what you feel will not fully satisfy your needs. 

4. Geographical coverage of the company

However minor this might look, it is equally imperative to consider the geographical reach of your provider.

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You need to ask yourself these simple questions; does the company  have a network that cover your areas of operation. this is likely to be to your advantage because what it simply mean is that you will be able to get helped faster and in a more convenient way.

It will be a waste of time to seek for a policy cover with a provider that might cost you excess time and resources to access.