How to choose life insurance?

How to choose life insurance company and its policy?

There are various life insurance companies operating in India, every day a new company is planning to set up its operations in India. India is the 2nd largest country in the world population wise (1,210,193,422 as on March 31, 2011) and only 30% of the population is insured.

There are 23 life insurance companies operation in India as on March 31, 2011, including LIC OF INDIA . All 22 pvt. life insurance companies started their operation after year 2000. IRDA is the insurance regulator came into existence in the year 2000.

There is always confusion among new life insurance customers about their plans as mentioned above there are 23 insurance companies operating in India with more than 200 life insurance products.

In the busy life, people have very less time to do research and analysis about these life insurance products and they buy life insurance policies blindly as suggested by the company representatives or life insurance advisors near them.

There are various points to be considered while buying life insurance products, some of them are listed below:

• What is the claim ratio of the life insurance company?  You are buying life insurance policy to cover your family for unforeseen unfavorable  future financial circumstances, but what if after buying life insurance policy your goal does not meet. LIC OF INDIA is settling maximum claims 99% , average of rest 22 life insurance companies are settling only less 72%.
• What is the bonus rates declared by the company in last financial year? Life insurance companies declare their bonus every year, before buying the product please do consider the bonus how much maturity will come to you and ask your advisor to calculate it as per bonus declared by the company in last year. LIC OF INDIA has maximum bonus rates in entire life insurance industry.
• What is the profit of the life insurance company? Life insurance Companies are going and coming, this process continues but you and your family has to stay. What is the guarantee that at the time of maturity the company will stay . Please do consider its profit and its balance sheet for better security to your family and its future. LIC OF INDIA has declared total profit of Rs 17,000 crores last year, whereas hardly any pvt. insurer company exits which have declared profit even 1000 crores. 

for more details you can visit http://www.lichelpline.com and for the facts and figures mentioned above, please consult IRDA report 2008-2009.