Saturday, September 5, 2009
Guideline for choosing insurance companies
Various risks come on the way in an individual’s lifetime. The risk can be avoided or minimized by taking proper insurance policies. The insurance policies protect a person from the unavoidable and accidental risk that may come unpredictably in future. A question comes at this point, which insurance company to choose. There are many insurance provider companies in US. One needs to know properly the pros and cons of the different companies and choose the right one from those that suits the individual’s needs.
The insurance companies can be divided in two heads. The life and non-life insurance companies. The life insurance companies are meant for securing life. They sell insurance for life, pension items and annuities. The non life insurance companies are the general insurance providers. Insurance for property/casualty and general products falls under this category.
The above categories are divided in such a way because the life insurance and pensions products have long term coverage’s. The non-life insurance companies can be divided into
- Standard Lines and
- Excess Lines
The main stream insurers in USA are known as the standard line insurance companies. They companies provides insurance to the autos, home or businesses. The insurances from these companies can be sold directly to the individuals. The premium amounts of these companies insurances are comparatively lower. These companies are also regulated by state laws.
The insurances that are not covered by the standard line insurance companies are covered by the excess line insurance companies. These insurances are generally having higher premiums than the standard line insurance companies.
Looking at the above insurance company one may feel that it is very hard to choose a proper insurance company. But one can also take the help of insurance agents to get a guideline and get advised on which insurance provider to choose.
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