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7 Tips to choose the Right Insurance Provider

By PolicyBazaar

Buy a term plan and secure your family

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Published: 16 June 2020Last Updated On: 08 February 2021

AED 100,000 cover starting at just AED 7/month

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Purchasing life insurance is an absolute must for all groups as it is the key to safeguarding your loved ones and family members against strokes of uncertainties. Insurance seekers are stuck in the dilemma of choosing the right insurance provider amongst the plethora of options available in the market.

Very often definitions, inclusions, terms, conditions and use of complex language makes it difficult for users to understand and choose the right insurance plan in the UAE. Choosing the right insurance company is as important as choosing the right insurance plan.

If you are looking forwards to buying an insurance policy in the UAE, but stuck amid the confusion of choosing the provider, we will help you in that. In this thread we will shed light on some of the most important tips and points to ponder while purchasing the right insurance provider in the UAE.

Agent vs. Provider

It is quite a common scenario where people are unaware of their insurance provider and the single point of contact between them and the insurance provider is the insurance agent. Insurance buyers should learn and understand that purchasing insurance policies independently without the help of an insurance agent will get them the opportunity to explore and shortlist option outside of one particular company.

Furthermore, insurance agents usually have a commission associated with every plan they sell, therefore there is a possibility that the agent might push you a bit hard to go for a particular plan or provider. Contrary, to this when you get an insurance plan or choose a provider online there is a more diverse variety from which you can choose the best suited options in terms of budget and requirements.

Provider’s Reputation

The reputation and market value of the insurance provider are crucial factors to focus upon when choosing the right insurance provider or plan. Insurance buyers should indulge in research online by visiting the provider’s website which will provide detailed insight into the history and time frame from which the company is operating in the insurance industry. Moreover, online research also provides other vital information such as company’s vision, operational units, financial strength, states in which they render services.

Financial Strength of the Insurance Provider

Before choosing any insurance provider it is extremely vital to be aware about its financial strength as it gives an idea about the market hold and position of the company. Choosing the wrong insurance provider can land into disastrous situations where your company is unable to pay the claimed amount due to poor financial situations.

Along with thoroughly analyzing the insurance provider’s financial strength, insurance seekers should also lay emphasis on the online and customer reviews as they provide detailed information about how the company is functioning from a customer’s perspective.

Coverage

Insurance seekers should look for companies that are able to provide the required amount of insurance coverage. Very often, insurance providers have pre-defined limit of coverage that they offer, and therefore it is important to revisit the coverage aspect before choosing an insurance company in the UAE.

Pricing

Another important factor that comes into picture while choosing the best life insurance provider in the UAE is the pricing of a policy. There is a very prominent reason to why the prices of life insurance plans and providers changes. A lower price i.e. payable premium typically depicts that the coverage offered by this particular plan/ provider is low, on the other hand a higher price i.e. higher payable premium indicates that the coverage offered is high.

Sometimes insurance providers sell their plans at lower prices in order to build a market, this is especially valid for new providers that have recently entered the market.

Claim Settlement Ratio (CSR)

The claim settlement ratio refers to the ratio of total number of claims paid to the total number of cases registered. In some words, the claim settlement ratio indicates that the fraction of cases that are being paid by the insurance provider in comparison to the number of cases that are reported.

A higher claim settlement ratio indicates that out of all the cases registered to the insurance provider most are being processed and paid by the company. Therefore, insurance seekers should also lay emphasis on the claim settlement ratio while choosing the right insurance provider in the UAE.

Discounts

Last but definitely not the least insurance seekers should look for the best available discounts while choosing insurance providers in the UAE. A provider with higher discount should be preferred over one with a lower discount. It is not mandatory that the discounts will only be offered in terms of premium. Some insurance providers offer discounts by providing complimentary rider or add-on coverage over the basic plan.

In a Nutshell

As mentioned earlier, choosing the right insurance provider is as important as choosing the right plan. With these 7 tips it will become easier and more simpler for you to choose the right provider that offers the right coverage, fits into your budget and fulfils all the requirements.