Things to know when buying insurance policies
Premium- Though it may not always be possible for you to understand all the intricacies of an insurance policy, you must ponder the following factors while zeroing in on an insurance plan.
There are numerous occasions in our lives when we often wonder if we have taken the right decision. Some of these decisions may concern personal lives, while others are financial in nature. While the primary purpose of buying insurance is either protecting life, health or property, there are secondary aspects to it as well.
Though it may not be always possible to understand all the finer details of an insurance policy, one must look these factors while zeroing in on an insurance plan:
Life Insurance
Life insurance is perhaps the best way to compensate for the inevitable financial consequences which follows a loss of a life. It helps dependents plan educational and other expenses and also takes care lost income.
Sajja Praveen Chowdary, head-term insurance, Policybazaar.com, said, “While buying a life insurance policy, make sure you purchase what you expect. Double-check some key policy benefits, including total sum, assured, policy term, premium amount, claim ration, and payout. To make your policy more effective and comprehensive, you can even add riders like critical illness cover, accidental health benefit, disability cover, etc."
Health insurance
A suitable health insurance policy helps get complete coverage at the time of emergencies. Primarily, the health insurance policy must have the maximum entry age and lifetime renewal to have uninterrupted medical assistance.
"The method to select a health policy is to go for comprehensive health insurance that can cover pre-existing health (PEDs) conditions and acute diseases. The health policy should offer a low waiting period and the lowest sub-limits/co-payment to avoid expenses from own pockets. As they may require constant checkups and treatments, the policy should have outpatient disease (OPD) and domiciliary benefits as inbuilt for continuous medical support," said Naval Goel, Founder and CEO, PolicyX.com.
Motor insurance
Generally, motor (two-wheeler and car) insurance seekers buy insurance for their vehicles as a formality without giving it necessary consideration. However, as an insurance seeker, it is essential to be completely aware of all the facets of motor insurance before finalising a policy. The first thing to know is that third-party insurance in a motor insurance policy is compulsory as per the Indian Motor Vehicles Act. Additional, look for a comprehensive insurance cover that offers complete protection against damages caused to you and your car in an accident.
“If your car is below the age of five years, you must consider buying add-ons to get optimum protection against accidents. Some of the most popular add-ons to consider for your vehicle include Zero Depreciation, Engine Protection, Road Side Assistance, Return to Invoice and Consumables Cover. All two-wheelers and cars come with a default Personal Accident cover with a total cover of ₹15 lakh cover," said Tarun Mathur, CBO, Policybazaar.com.
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