Natural as well as man-made catastrophes can take place at any time. That is why there are 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. Insurance policies help all the while - upon death, when one meets an accident, when there is accidental disability and in many other situations. 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.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. What are you really getting - 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 muscle of the policy issuing company - 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. Do not compare apples and oranges if both the price as well as the cover is different. 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. Most of the well known names would probably not have this issue, but if you are buying from a lesser known entity, make sure that it is full accredited. If not their policy will not hold good.