Insurance has evolved with time, which has helped the insurance sector to diversify itself with better products and services. With the increased benefits and options, now the customers need to make a well informed decision for buying the best product and for availing the maximum benefit from it. Missing out from the various benefits of insurance policies can be a major drawback for you and that’s why the need of taking some important insurance decisions becomes a very important part of your new year’s to do list.
So let’s see some of the important insurance decisions which you should take in the year 2017:
Buy a Health Insurance Plan
The rising cost of health care is becoming a big issue for most of the people. The inflation rate of health care sector is higher than any other sector or regular inflation. While the regular inflation is in single digits, health care inflation has reached double digits. Nowadays, even a normal surgery can cost you more than Rs 1 lakh. In such situations, buying a health insurance policy becomes a necessity to avoid huge expenses on health care, which can devour your savings easily. If you are a salaried person, then there are high chances that you would be covered by the employer under a group health insurance policy. But you must review your employee health policy and check whether it fits into your requirement or not because the health cover offered is usually lower than required. Also, the policy comes with various limitations and exclusions. If you are a businessman or self-employed or have no health insurance policy, then you can buy a health insurance policy very easily and avail the benefits. You can choose from a family floater plan and individual plan, according to your need and situation.
Opt for Comprehensive Motor Insurance Cover
A third party insurance protects the vehicle owner from the legal liability, arising due to damage caused to the third party. Having a third party insurance is compulsory in India. But you must know that the cover of third party is limited, and it doesn’t give any protection for your vehicle’s own damage and loss. So it becomes necessary to buy a comprehensive motor insurance policy which gives you the benefits of a third party insurance, as well as cover for your vehicle’s own damage and loss also.
Don’t expect Returns from Insurance
Many people think that choosing a common tool for investment and insurance is a very wise decision but that’s not true. You should always keep your investment and insurance goal separate otherwise you will end up compromising one of them. For example, if you are having plans for investment and insurance both, then you can buy a pure term plan for insurance and a mutual fund for investment. Mixing both the objectives of investment and insurance can cause you loss in one form or another.
Begin with a Term plan if you haven’t bought any life insurance policy yet
If you are looking for a life insurance plan, then a term plan can be the most economical way of buying an insurance policy. A 27 year old man, who is a non-smoker, can get a term insurance policy of Rs 1 crore, at an annual premium of Rs 7,577 (policy term 30 years). The low amount of premium with high coverage, makes the term plan, a perfect choice for life cover. You are even allowed to choose your policy term, according to your need and situation. So you can buy a term plan even with a tight budget and you will not have to pay the premium for your whole life.
Opt for Digital Buying
Those days are gone when you have to be totally dependent on the insurance agent for buying and managing the policy. Now you can easily buy insurance policy online and get the following benefits in comparison to buying from an agent:
- No mis-selling
- Well informed decision
- Less paperwork
- Easy Comparison
Buying an insurance policy and just paying the premium will result in an unfruitful policy which will just be active, but will not give any benefit to you. Because with advancement in time, our need and situation keep changing and that’s why you need to make required changes to your insurance policy. So, it becomes very necessary to keep reviewing your policy on a timely basis, so that you can adjust your insurance policy according to your changing needs and situation.
A new start leaves the footprints of some major decisions taken in life and the same goes for your insurance policies this year. The fresh start of the year can be made more memorable and fruitful by taking an informed decision regarding insurance policies which will help you achieve your goal and will make your future much more secure.
The author, Harjot Singh Narula, Founder & CEO, ComparePolicy.