|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.|
Health care is a major concern for everyone and with current lifestyle of late night shift, workload, increasing pollution, competition and bad food habit, health issues are arising in all age groups, not only in old aged people. And with the current rate of inflation in the health care sector of India, which is almost close 20%, availing health care facilities are becoming very difficult and costly. A normal surgery of Rs.5 Lakh today will cost you Rs.12,44,160 after 5 years at 20% inflation rate.
With such conditions of health issues and rise in price of health care sector, going for a health insurance policy is the best decision you can make towards your happy and healthy life. In countries like USA, health insurance has become compulsory for every citizen otherwise they have to pay a tax penalty. You can understand the importance of Health insurance from this rule in the USA.
Health insurance is an insurance against the medical cost incurred by the insured person. The money incurred is paid directly or reimbursed by the insurer. Low premium is offered in health insurance policy for young people and the premium depends upon your current medical condition and hospital services you choose. It is very much important for both health and wealth.
Following are some of the benefits of buying a health insurance policy:-
Deal with Inflation
Inflation can be witnessed in all the sectors which is a major concern for people. Inflation in health care sector has left other sectors way behind which is making the cost of medication and hospitalization to increase at a very high pace. The increasing technology and up gradation in treatment tools are adding up to the bills of the patient. To tackle with such a high rate of inflation, especially in the health care sector, health insurance is the right tool. Based on the current rate of inflation, you can estimate the cost of health care required after some years and then decide the amount of health insurance policy accordingly.
Peace of Mind
According to the WHO report, the major reasons for death in India are heart disease, chronic obstructive pulmonary diseases and stroke. Increasing cases of dengue, chikungunya and people becoming more prone to dangerous diseases needs serious concern. Due to the rising health issue in all age groups, people are always worried about the bad conditions through which they have to go or their loved one have to go, if found with any need of hospitalization and medication. Health Insurance policy allows you to be free from the worry of doctor, payment and good facilities at the hospital.
|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.|
Let us take an example of Naveen (29 years), who is married to Sujata (26 years) and they have son Deepak (2 years). Naveen is always worried about his family as he is the only earning member of the family. He doesn't want his family to suffer if anything unfortunate incident happens to him, which could land him in hospital. His income will be blocked, the lengthy bills of the hospital and check-ups will be beyond his savings, and all these nightmares haunt Naveen every time. He doesn't want his wife with a kid of only 2 years to suffer because of his medical condition. So Naveen decided to go for a Health insurance policy to protect his family against any medical emergency and now he doesn't need to worry about the health care issue for him and his family.
Arrangement of huge amount of cash at the time of emergency becomes a headache for people and this can be easily done if you have a health insurance policy. Health Insurance policy allows you to go for cashless treatment in network hospital, which is a great relief for people struck with an emergency condition and also for people who can't afford costly medical treatment.
Pre and Post Hospitalization cost
Emergency situations are not the only cases in which Health insurance policy helps you. It covers your pre and post hospitalization cost. Pre hospitalization cost includes the charges related to checkups like blood test, X-ray which are done before hospitalization and Post hospitalization cost includes costs incurred after hospitalization. In both the cases, the insurer can claim for both types of cost incurred at the hospital. Number of days in pre and post hospitalization cost is different for different companies.
Health insurance policy also provides a tax benefit under Income tax act 1961. In which policyholder can avail tax benefit under section 80D. The amount of the deduction increases if the person insured is a senior citizen.
It doesn't matter how young or healthy you are, Health insurance is compulsion for all those people who want to live a healthy and secured life without incurring huge amount in medical expenses. Think about your medical expense in future, medical condition, health requirements and then choose the best health insurance policy so that you get the maximum benefit out of it
|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.|