|Insurance Buying Tips #1: Shop smart|
|When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.|
|Insurance Buying Tips #2: Look for discounts|
|Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.|
|Insurance Buying Tips #3: Fill in the gaps|
|An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.|
Critical Illness insurance cover deals with life-threatening diseases. There are certain ailments that are a threat to life and the treatment cost is very high. If you have as simple health insurance policy, it would not provide you coverage against terminal illness. If you encounter, terminal illness the recuperating cost would also affect your other financial liabilities. Hence, in critical policy a fixed amount of money is disbursed if you are diagnosed with one of the acute illness listed in your policy document.
Difference between critical illness insurance and health insurance
Critical policies are known as fixed benefit policies. The sum assured is disbursed in full whether you are availing treatment at hospital or recuperating at home. As critical may result in your loss of income, hence this policy is designed in such a way that you can take care of your day to day expenses by using the fund disbursed.
In indemnity policies you get reimbursements against the total expenditure incurred up to the extent of your sum assured. It basically takes care of your medical expenditure only and does not provide your fund to manage other expenses.
Types of ailments covered under critical illness
|Insurance Buying Tips #4: Purchase life insurance—you aren’t too young|
|Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.|
|Insurance Buying Tips #5: Talk to an independent agent|
|An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.|
|Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living|
|You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.|
The list of ailments may vary for different insurance providers. However, the general ailments covered are:
- Heart Attack
- Bypass Surgery
- Kidney Failure
- Organ Transplantation
- Multiple Sclerosis
- Total blindness
Benefits of Critical illness cover
- Disbursal of fixed amount on diagnosis of critical illness
- Takes care of income loss
- Helps in paying off other financial liabilities
- Funds lifestyle changes post ailment
Facts to know before selecting critical illness cover
- Most of the policies come with a survival period clause. As per this clause the insured should survive the unhealth for minimum 30 days before filing a claim.
- The list of ailments covered under critical cover may vary from provider to provider. Do check the ailments covered in order to have a clear picture.
- Some critical cover plans would consider disability arising from accident and some may not. Hence, be very sure of the inclusions and exclusions.
- The claim process may vary for different providers. It is always good to check the claim process and disbursal history before selecting an insurance provider.
Critical cover plan basically would prove to be a savior as the cost of treatment is so high. Critical illness not only fractures your health but also your financial condition as it may even result in loss of income. You family liabilities and your cost of treatment can be very well taken care of if your plan prudently and take a critical insurance cover.
|Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover|
|Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.|
|Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier|
|here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.|
|Insurance Buying Tips #9: Review your insurance needs on a yearly basis|
|As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.|