1. The insurance company must outlive you. The company must be in a position to settle your death claim to your survivors. If you have the slightest doubt in this, a the insurance company, irrespective of how cheap the cover is. 
2. The company should have a good image, one that demonstrates that they are in it for the long haul. Their image should convey honesty and efficiency; not that of a lion hungry for prey and increasing their business at the cost of long-term sustainability.  
3. It should be able to give you the cover you wish for at cheaper rates. The company should be able to provide better rates to the customers.  
4. It should have efficient and experienced people who can invest your money better. Unit linked policies are a rage today. Insurance thus involves active management and growth of your funds as well. Performance of Asset Management Company (mutual fund schemes) offered by the parent company could give you some leads.  
5. Their attitude towards sales - are they only concerned with selling their products to meet their targets or do they train their employees and agents well?  
6. The quality of their advisors – are they genuinely interested in giving the right solution? The advisor is ultimately the interface between you and the company. He should come across as both honest and competent, and keen to understand your needs before providing an appropriate solution.  
7. Issues with rate up - any person whom the insurance company feels is not a standard risk could be dealt with in any of the following manner:

a)       Charged extra premium

b)       Given a cover lower than what was asked for

c)        Postponement of the decision

d)       Declined cover

While the emotional angst of not being a ‘standard’ risk exists, one must recognize that the insurance company must act in the larger interest of all its policyholders. Ensuring a lower claim ratio improves the final maturity values of the policies and is ultimately beneficial for you.

Now that you know what you need to look for, go ahead and select the ‘right’ partner for your life insurance – or should one say, insurance for life?

Money Matters Mantras:

The author, Lovaii Navlakhi is a Certified Financial Planner and the Managing Director of International Money Matters Pvt. Ltd. He can be contacted on lovaii@internationalmoneymatters.com