The reason why you should purchase life insurance like the way you would purchase gold
For ages, gold has been one of the greatest sources of financial protection during uncertain times due to its ability to evade against inflation and volatility in currency and equity markets. Life insurance too, much like gold, is a financial tool of last resort. It will stand with your loved ones in the most desperate of times. When it comes to financial planning, indications are the sheen of gold may dull a little, but a whole life insurance policy will always be of considerable value to one’s portfolio.
When buying gold, buyers like you and I are mindful of numerous factors—cost per gram, level of purity, certification of quality and BIS hallmark. To ensure that we get the best return in exchange for our money, it is imperative to adopt a similar approach to purchasing life insurance. Here are some parameters that will help you prequalify a life insurance policy with as much correctness as you show when buying gold.
Claims Paid Ratio: The latest hallmark of credibility
Just like hallmarks symbolize the fineness of gold, claims paid ratios to indicate the trustworthiness of a life insurance company. Claims paid ratio shows the number of death claims settled by a life insurance organization as a percentage of the total claims received over a selective period of time. For instance, if a life insurance company receives 1,000 death claims and settles 970, the claims paid ratio of the corporation will be 97%. The bigger the claims paid ratio of a life insurance company, the higher are the chances of a claim being settled by it. It also reflects the quality of underwriting and sales processes adopted by the company. In general, the industry regards companies with higher claims paid ratio as comparatively more effective because it speaks volumes about the company’s degree of responsibility to serve the customer.
Net Promoter Score: Level of consumer centricity and authenticity
Net promoter score is to life insurance what caratage is to gold. Just like caratage helps identify the level of purity of gold, Net Promoter Score helps determine the overall degree of customer delight by calculating how likely the customer is to advise the life insurer’s products/ offerings to peers. In the life insurance industry, this metric is considered a cornerstone to assessing the overall performance of an organization on custom parameters. One must take it into account when purchasing a policy as it is a broad indicator of the kind of service a customer can anticipate from his/her life insurer.
Testimonials and customer reviews: Certification of quality
We frequently analyze the jeweler’s validation of the quality of gold to ensure that we are buying only the soundest. Likewise, when buying a life insurance policy, it is crucial to check the reports provided by genuine customers. This will allow you to steer clear of companies with bad online reviews and loads of unresolved consumer complaints. While some of the reviews might not be genuine, an overwhelming number of complaints should be a clear impediment against accepting that particular insurer.
Ultimately, while you can definitely tell a lot about the life insurer from its history of settling claims, net promoter score, and testimonials, these shouldn’t be the only parameters to go by when buying a life insurance policy. Besides the above-mentioned metrics, you must consciously opt for a life insurance company that is on the top of the frequently digital ecosystem, provides you the ease of access to insurance answers, reaches you on a medium and time of your choice and concentrates on promoting the need for financial stability, among other things.