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Things to Know Before Purchasing Insurance



ThingstoKnowBeforePurchasingInsurance


Contents :-



LIfe Insurance


1. Review Your Insurance Needs

Talk to an insurance agent. He or she can help you evaluate your insurance needs and give you information about available policies.

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2. Decide How Much Coverage You Need

How much of the family income do you provide? Does anyone else depend on you financially? How will your family pay final expenses and repay debts after your death? Based on the answers to these questions, decide how much coverage you need, for how long and what you can afford to pay. You want to make sure that you buy enough life insurance to cover the financial effects of an unexpected or untimely death.

3. Assess Your Current Life Insurance Policy

If you already have a life insurance policy, do not cancel it until you have received the new one. You then have a minimum period to review your new policy and decide if it is what you want. Keep in mind that you may not have to cancel your current policy. You may be able to change your policy to get the coverage or benefits you want now.

4. Compare The Different Kinds of Insurance Policies

There are two basic types of life insurance: term insurance and cash value insurance. Term insurance generally has lower premiums in the early years, but does not build up cash values that you can use in the future. Cash value life insurance may be one of several types: whole life, universal life and variable life. Your choice should be based on your needs now and in the future and what you can afford.

5. Be Sure You Can Afford the Premium Payments

Before purchasing a life insurance policy, be sure that you can handle the premium payments. Can you afford the initial premium? If the premium increases later, will you still be able to afford it?

6. Have an Insurance Agent Help You Evaluate the Future of Your Policy

How quickly does the cash value grow? Some policies have low cash values in the early years that build quickly later on. Other policies have a more level cash value build-up. Ask your agent for a year-to-year display of values and benefits.

7. Keep Your Current Policy

It is important that you do not drop one policy and buy another without a thorough study of the new policy and the one you have now. Replacing your insurance policy may be costly.

8. Understand Renewal Policies

You can renew most term insurance policies for one or more terms even if your health has changed. Each time you renew the policy for a new term, premiums may be higher. Ask what the premiums will be if you continue to renew the policy. Also ask if you will lose the right to renew the policy at a certain age.

9. Read Your Policy Carefully

Do premiums or benefits vary from year to year? How much do the benefits build up in the policy? What part of the premiums or benefits is not guaranteed? What is the effect of interest on money paid and received at different times on the policy? These are all questions that you should be able to answer by reading your policy thoroughly. Your agent can help you understand things that are unclear.

10. Review Your Life Insurance Program Every Few Years

How will inflation affect your future needs? Do you need more insurance when your family size increases? Review your policy with your agent every few years to keep up with changes in your income and needs.


Health Insurance


When considering which health insurance to buy, there are many things to consider. Does the scheme have options for hospital cover, how much do you need to pay before the scheme becomes active and whether medication is considered are among the many things that should be looked at when purchasing health insurance.

5 Easy Steps

1. Decide on the family members that you want to cover through health insurance

2. Decide on the amount of coverage needed, based on your estimate of health costs and your existing coverage from employer provided insurance etc.

3. Compare the options of taking individual policies vis-a-vis a floater policy, or critical illness or other specialized policies based on your requirements.

4. Compare the offerings of various insurance providers.

5. Contact an agent/broker to purchase the health insurance product

I have prepared a list of questions to be asked for the Insurance Consultant or Insurance Agent who gives us the information regarding the health insurance policy. I hope this will help us in negotiating the price and benefits among the different health insurance products available in market.

List of Questions.

1. Ask Company name and Policy Name.

2. What is the type of Policy

3. What is the premium

4. What amount of claim can be settled, claim settlement

5. IS premium is fixed? If yes then for how many years?

6. Up to what age the policy covers for insurance.

7. What are the benefits?

8. Does this covers Accident Insurance? What all types if accidents are covered?

9. What types of accidents are not covered?

10. What illness are covered and what are not covered?

11. Is this Family Floater or Individual? Group Claim to be done or individual claim can be done.

12. What is the success rate of passing the claim. What are the documents required for claim settlement.

13. Where to submit the claim?

14. Whether OPD, Domiciliary expenses are covered? If yes what is the amount that can be claimed in a year and how many times we can claim?

15. What family size is cover?

16. Is parents are covered? If yes up to what age limit? What is the premium for them.

17. Is medical examination required for taking this policy? Who will bear that cost?

18. Does it cover illness / accidents occurred outside India?

19. What about existing diseases? Is it covered? If not then till how many years?

20. Why this plan is better then other?


Home Insurance


Homeowners' insurance generally covers the loss of your belongings in case of fire, theft, and certain other casualties. If you must repair or replace property that is damaged, destroyed, or stolen, your insurance will generally pay for all or part of the cost. It also protects you against liability lawsuits- if you are sued by someone who is injured or whose property is damaged, your Homeowners' insurance will usually cover a certain amount of that liability.

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A natural query in your mind would be of any points to be considered before obtaining a home insurance policy.

• You should find out whether the coverage offered by the home insurance company is automatically adjusted as a protection against inflation otherwise he/she should review the policy.

• If new property acquisitions made by you are not covered by the home insurance company then you should buy extended coverage to insure those items.

• You should ask for optional coverage if dwelling in areas frequently impacted by floods and/or earthquakes.

• A thorough and detailed comparison of the quotes and coverage of every major home insurance company usually leads you to a cheap home insurance policy with smaller premiums.

• Before subscribing to any home insurance policy, you should essentially be assured of the financial standing of the home insurance company in question.

What's Covered

Although exact coverage and policy limits vary, Homeowners' insurance usually covers damage done by the following events/catastrophes:

• Fire
• Lightning
• Explosion
• Smoke
• Vandalism
• Theft, including check forgery and counterfeit currency
• Unauthorized use of credit cards
• Falling objects
• Ice, snow, or sleet weighing on vehicles
• Windstorm
• Hail
• Riot
• Volcano
• Freezing of plumbing
• Flooding due to plumbing overflow
• Hot water heater bursting
• Heating system malfunction
• Power surges

Basic coverage may also include food spoilage, lock replacement, temporary repairs, removing debris. If these items are not initially included in your basic coverage, it is possible to have them added.

If you incur expenses for temporary living quarters because your home is rendered uninhabitable by an insured event/casualty, most policies will reimburse you in part for this so-called "loss of use."

TIP: Floods, hurricanes, and earthquakes may have to be protected against separately-either with a separate policy or with a floater or endorsement.


Auto Insurance


There are different types of car insurance agencies in India — ICICI Lombard, Kotak Mahindra, Bajaj Allianz are among the most prominent private insurance companies.

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Tips:

• Premium rates are determined by the type of vehicle, its Insured Declared Value (IDV), the period of coverage, the city of registration and history of claims.

• The IDV is defined as the sum to be paid in the event of theft or if the vehicle gets destroyed beyond repair. The IDV is determined by the age, model and brand of your vehicle.

• The premium is calculated on the cubic capacity of the vehicle, although some discounts are available if an anti-theft device has been installed. But if you have a bad claim history, you may have to pay a higher premium on renewing the car insurance policy.

• On the other hand, being claim-free will entitle you to increasing discounts in your second, third and fourth year.

• Comprehensive car insurance protects you against any loss or damage caused to the vehicle and its insured accessories as a result of natural and man-made calamities.

• Third party legal liability cover protects you in case of accidental damages.

• Typically, the motor insurance plan does not provide for: normal wear and tear or general ageing of the vehicle, mechanical/electrical breakdown, depreciation or use of vehicle other than what it is meant for.

• In case your car gets stolen, you have to get a non-traceable certificate from the police station within 60 days of the theft.

• You should find out whether the coverage offered by the home insurance company is automatically adjusted as a protection against inflation otherwise he/she should review the policy.

• If new property acquisitions made by you are not covered by the home insurance company then you should buy extended coverage to insure those items.

• You should ask for optional coverage if dwelling in areas frequently impacted by floods and/or earthquakes.

• A thorough and detailed comparison of the quotes and coverage of every major home insurance company usually leads you to a cheap home insurance policy with smaller premiums.

• Before subscribing to any home insurance policy, you should essentially be assured of the financial standing of the home insurance company in question.


Travel Insurance


Do you spend hours after hours making the perfect vacation plan but purchase your travel insurance policy at the last moment? You should realize the importance of buying a suitable travel insurance plan, which will cover your financial losses due to tour cancellation or lost baggage. This article suggests some tips that will help you to purchase a policy as per your requirements.

8 Essential tips for buying travel insurance

At first, you need to check whether or not your existing policies provide coverage for financial losses away from your home. As for example, your medical insurance policy may cover your treatments when you're traveling abroad. It'll help you to avoid purchasing overlapping coverage.

Here are some more travel insurance tips that will help you choose a policy that will benefit you the most.

1. Shop around to compare rates: It is advisable that you shop around for insurance policies. It will help you to choose a policy that offers best coverage at an affordable rate.

2. Purchase policy through third party insurer: Though tour operators and travel agents sell travel insurance policies, yet it is always better to buy policy from an established insurance company.

3. Look for ways to maximize coverage: You can maximize your coverage if you purchase insurance policy at least 2 weeks before your trip.

4. Look for policy with 24-hour assistance: Before purchasing a policy, check out whether or not it offers 24-hour assistance. It will help you to contact your insurance provider in emergency situations.

5. Check out which activities are covered: It is quite important to check out which activities are covered under your travel insurance policy, especially if you're interested in adventurous activities like sky diving and bungee jumping.

6. Make sure it covers personal liability: It is advisable that you check whether or not your policy covers personal liability. You may need it if someone files a lawsuit against you when you're responsible for some accidental cause or damage.

7. Consider extra coverage option: If you're traveling with expensive items (such as, jewelry, laptop, sports equipments, etc.), then you should consider purchasing extra coverage in order to insure those items.

8. Make sure you ask the right questions: Ask right questions while shopping for a travel insurance policy. Make sure you ask about the coverage and type of assistance the company will offer in case of medical emergency or some serious problem.



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