Could Your Life Insurance Company Fail?

Life insurance policies provide your family the much needed financial stability in case of your sudden demise. This becomes all the more essential when the breadwinner of the family is gone suddenly. Your family can still meet their vital needs and maintain the same standard of living that was available that they had earlier. However, what if the insurance company goes bust?

Like in case of a bank, your insurance company could also go bankrupt. However, this does not mean that all your hard earned money is gone forever and you are left penniless. This is because every insurer is monitored by IRDA (Insurance Regulatory and Development Authority) on a regular basis. The insurer is also supposed to maintain a solvency margin for recovery in case of an unfortunate incident.
What are the Safety Measures

There are various measures and regulations undertaken by the government and IRDA so that your money is always safe, even if the insurer goes bust. There are various strict guidelines and regulations that ensure that one or two serious incidents or financial loss doesn’t result in the company going down. The two main acts that cover all these regulations and are the foundations of various activities that are carried out in the field of insurance are:

• The Insurance Act 1938

• The Insurance Regulatory and Development Act 1999

The various guidelines and regulations are the following:

• Every insurance company has to be registered and needs a license from the relevant authorities. This will prevent fraud companies from carrying out their illegal operations and duping investors.

• The process of registration and renewal has to be strictly followed by every insurance company.

• A solvency amount of Rs 150 crores has to be submitted with RBI, under IRDA. This is safety deposit money that is kept for compensation to customers in case the company goes bankrupt.

• Every insurance company is required to be attached to a re-insurance company. The re-insurance company will take up the legal responsibility of reimbursement of insurance claims of customers, in case the insurer goes bankrupt.

• There are strict regulations regarding the minimum capital requirements, funds, accounts and management of the companies.

• There are also strict guidelines regarding the amount of cash companies can invest in stock markets, individual stocks etc.

What Else Can You Do?

On the other hand, to be doubly sure, you might invest your money with different insurers in different policies. This reduces the risk of losing all your insurance cover in case one of the insurers goes bust. However, it has a downside that you will be paying a policy fee for multiple policies to different insurers. Also, you will be missing out on the discounts and other benefits that one insurer gives on a single bulk policy. Also, when you get life insurance, you must go for online life insurance that will enable you to choose the best and most reliable insurance company.

With the strict guidelines and regulations, it is almost impossible for any insurance company to go bankrupt in India. You can therefore be confident and fully assured that your hard earned money will be safe with the insurance companies. If at all anything unfortunate happens, IRDA and the Finance ministry in the Central government will ensure that your and other customers’ issues are addressed and your money recovered.

What Does a Life Insurance Company Rating Mean?

Most people, comfortable with their own sense of immortality, might look to a Life Insurance Company rating as an indication of the lowest premiums for x amount of Life Insurance. A bit more important is the Company’s financial stability and its ability to pay its claims.

When you are shopping for Life Insurance and feel all proud of yourself for being responsible and taking care of the risk management portion of your long term financial planning process, it is easy to concentrate solely on the cost of premiums. After all, most people are expecting to lost their wager with the Insurance Company and are getting Insurance for the “what if” and not the “when.”

Yet, although comparative premiums play a part in the Life Insurance Company rating, financial stability is a more important consideration. If an Insurance Agent offered you a million dollar term policy for a couple of cents a year, it might seem like a very, very good deal. Yet, if the Company has folded up shop and moved to Central America when your beneficiaries come looking for their payout, it was really a wasted couple of cents.

In the world of permanent Life Insurance and the combination of Life Insurance with savings and investment, financial stability and a good track record in selecting and managing your investment are the factors that constitute a good Insurance Company Rating. The ratings and evaluations of any single Company are subject to change during the life of your policy. The need to understand ratings and to follow them closely does not end when the policy is purchased.

There are several reputable Rating services and they present their ratings online, so it is easy to obtain them. In addition, the Insurance regulatory agencies of most States can provide additional information on Company performance. The Insurance Marketplace Standards Association (IMSA) provides a Seal of Approval to Companies with ethical standards and a good performance records.

Remember, the Life Insurance Company Rating is a combination of a number of factors. These include competitive rate comparisons, but more important are the ratings that indicate long term financial stability and a good performance and investment track record. The ratings are tools that can be used to make the important choices involved in the selection of the best Company for your Insurance needs. Make sure you use them and do not be afraid to discuss them and their meaning with your Insurance Agent.

Auto Insurance Company – Free Online Car Insurance Company

Today it is very easy to find an auto insurance company free online car insurance quote. In fact, just about every company today offers these quotes online, in order to help you to find out whether not their the right company for you. So what is the best company for you? If it was this easy to determine this, everybody would go the same company.

The truth is, the best car insurance company will vary from person to person, depending on their personal situation. For instance, some companies might offer discounts for good driving records, even good grades, etc. It all depends on you and your situation. One company might be cheaper for your neighbor and may actually be more expensive for you.

So what are some for things to look for an auto insurance company? First of all, this is an obvious one, but it still is one of the central points: the price. The price of a policy will go a long ways to determining which is the right company for you is.

Of course, price certainly isn’t the only factor. Customer service is extremely important as well.

Quite simply, the insurance company industry, for better or worse, has developed the reputation of poor customer service. Many people report nightmare experience of having to wait hours before they get to talk with a representative.

Therefore, always make sure that the customer service is good before going with a particular company. Quite simply, some companies don’t have nearly the amount of current experience the other companies do. Therefore, it is imperative to look at the experience factor when deciding the right insurance company for you.

So how do you find out this information? Again, as with just about any information you want to find out in today’s world, the Internet has an abundance of info; by simply doing a quick Google search you will find literally millions of results to help you find out the right auto insurance company for you. Hopefully is important information help you quickly and easily find the right car insurance company for you with your individual situation.