Many of you make this mistake. These mistakes become a cause for concern later when buying life insurance (Life Insurance Buying Tips). Find out what things should be kept in mind when buying this type of insurance.

This insurance helps you and your family financially in times of danger. It also gives you peace of mind. Especially life insurance reduces the worries of the future to a great extent. Insurance protects you from unexpected emergencies. However, many people suffer from confusion when buying insurance. The biggest question on their mind is which company to buy insurance from.

With so many options available, people often get confused. Let’s find out the key things to consider before choosing an insurance company here.

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1. Solvency Ratio

When choosing an insurance company, one should consider its solvency ratio. Solvency ratio indicates whether the company has sufficient funds to pay its customers’ claims. The stronger the solvency ratio, the better the company’s financial condition. Solvency ratio indicates that the company does not take long to settle claims.

2. Claim Settlement Ratio

Claim Settlement Ratio refers to how many claims a company has paid out of the claims it has received. It indicates a company’s performance in settling claims. Claim Settlement Ratio should be considered while buying insurance.

3. Persistence Ratio

Persistence Ratio indicates what percentage of an insurance company’s existing customers are paying their premiums on time. It indicates whether the company is providing quality service to its policyholders. It is important to understand the persistence ratio before buying an insurance policy.

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4. Ratio of Resolving Complaints

The Grievance Redressal Ratio assesses how many customer issues are received by a business and how many are resolved in an appropriate amount of time. The Grievance Redressal Ratio represents a measure of the quality of the Customer Services provided by businesses. Therefore, fewer complaints relative to the number of resolved complaints indicate that the company views its customers’ issues with seriousness and has clearly managed them effectively.

( Note: The information provided here is for informational purposes only. It is important to note that investing in the market is risky. As an investor, always consult an expert before investing money. Timesbull.com never advises anyone to invest money here. This share market-related news is provided here for educational purposes only. We do not give calls or tips about any shares. )