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In the event of any unexpected accident or loss, in order to be able to tide over the same, individuals and companies opt for insurance policies. This is where the loss is transferred to a third party who bears the brunt. There are two parties involved in this agreement, the insurer and the insurance company where the policy has been taken. When a person dies, meets with an accident and becomes handicapped, or if the vehicle meets with an accident, are some cases where insurance comes in as a safety net. An insurance policy could be for any of these purposes -- health, life, medical, vehicle or general insurance. The duration is decided upon while signing the agreement.

Ultimately insurance is a protection against unwarranted and unexpected events. The payoff of an insurance policy takes place only when a bad event takes place. It could be sudden death, personal or vehicular accidents, injury, illness or disability. For these purposes, insurance is something that must be taken seriously. It is like that ad we grew up watching, Insurance truly is a "Don't leave home without it." At the same time, you must consider all options before you actually get a policy. Smart customers choose, compare and only then buy. Make sure that you are a smart customer.

Since there are many companies offering insurance policies, one must do some research and ground work before buying a policy. The policy needs to satisfy all the customer's needs and serve the purpose when the time comes. Some of the points that one needs to keep in mind are as follows:

1. Services offered - You must analyze the various insurance companies that are available, go through their policies and choose the one that offers the products and services that match your needs, in terms of duration, risk coverage and time taken to reimburse payment.

2. Financial stability - The company you choose must have a sound credit standing in the market and should have the ability to cover all the clauses mentioned in the policy on time. If not you will end up spending out of your pocket.

3. Premiums - Premium is an amount that the insurer pays to the insurance company at regular intervals during the year till the policy matures. Depending on the policy taken, the premium payable will vary. So compare the options available based on age, term of the policy, the type of policy and the value of the same. Sometimes the premium amount might seem very high, but the company will offer extra. Pay attention to details to protect yourself from misleading policies.

4. Reputation and License - One major factor that you must note is whether the company has a good reputation in the market. You can gather this information by talking to friends or colleagues who have policies with the company. Also the company needs to have a valid license and authorization from the Government to practice and issue policies. If not their policy will not hold good.