Insurance policies

What to know when buying insurance policies

There are many occasions in our lives where we often wonder if we have made the right decision. Some of these decisions may relate to personal life, while others are financial in nature. Although the main purpose of buying insurance is to protect life, health or property, there are secondary aspects as well.

While it may not always be possible to understand all the details of an insurance policy, one should consider these factors while focusing on an insurance plan:

Life insurance

Life insurance is perhaps the best way to offset the inevitable financial consequences that follow the loss of a life. It helps dependents plan school and other expenses and also covers loss of income.

Sajja Praveen Chowdary, Head of Term Insurance, Policybazaar.com, said: “When buying a life insurance policy, make sure you are buying what you expect. Double check some key benefits of the policy including total sum, guarantee, policy term, premium amount, claim ration and payout. To make your policy more efficient and comprehensive, you can even add riders like critical illness coverage, accidental illness insurance, disability coverage, etc.

Health insurance

A suitable health insurance policy provides full coverage in the event of an emergency. Primarily, the health insurance policy must have the maximum entry age and lifetime renewal to enjoy uninterrupted medical assistance.

“The method to select a health policy is to opt for comprehensive health insurance which can cover pre-existing health conditions (PED) and acute illnesses. The health policy should offer a short waiting period and the sub-limits As they may require constant examinations and treatment, the policy should include outpatient and in-home sickness benefits (OPD) for ongoing medical support,” said Naval Goel, Founder and CEO of PolicyX. com.

Car insurance

Typically, auto insurance seekers (two-wheelers and car) purchase insurance for their vehicles as a formality without giving it due consideration. However, as an insurance seeker, it is essential to be fully aware of all facets of car insurance before finalizing a policy. The first thing to know is that liability insurance in a car insurance policy is compulsory according to the Indian Motor Vehicle Act. Also, look for comprehensive insurance coverage that provides comprehensive protection against damage to you and your car in the event of an accident.

“If your car is less than five years old, you should consider buying accessories to get the best accident protection. Some of the most popular add-ons to consider for your vehicle include zero depreciation, engine protection, roadside assistance, on-bill return, and consumables coverage. All two-wheelers and cars come with default personal accident cover with total coverage of 15 lakh coverage,” Tarun Mathur, CBO, told Policybazaar.com.

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