Life and General Insurance
As the name suggests, life insurance is meant to cover the life of the policyholder. In the event of death of the policy holder within the term of the policy, the insurance company will pay a sum assured amount to the nominee of the policy. The most common life insurance policies in India are whole life insurance, term life insurance, endowment plans, unit-linked insurance plans (ULIPs), child plans and pension plans. Whereas, general insurance covers all non-life insured assets including health, home, motor, fire and even travel. Read the news till the end to know what are the things to keep in mind while buying insurance for the first time.
understand your needs
Research why you need insurance, whether it is to provide cover to your family in case of your untimely death or to ensure fair compensation in case of a fire at your business premises. Are you looking for insurance for a fixed term or for life? These decisions will affect the type and duration of your insurance.
check your budget
Today one can buy highly affordable insurance at very low premiums. One can also choose the coverage according to his need. For example, if you typically travel alone, you can omit passenger coverage when purchasing motor vehicle insurance.
protect your health
The first priority should be health insurance. This ensures that you have the ability to receive proper health care in an emergency. This can affect your reclaimer ability, your future earnings and will protect your savings.
Company research is very important
While buying insurance, it is always advisable to check the claims settlement ratio of the company. It is the percentage of life insurance claims based on the number of claims an insurance company has settled in a year as compared to the total claims in that year. That is, suppose this ratio of a company is 99 percent, then that company has got 100 claims, out of which it has settled 99. Always try to buy insurance from a company that has a high settlement ratio. With the rest of the digitization, buying insurance today has become much easier. Buyers can research and compare and buy a policy in a matter of minutes. Insurance companies have also increased their reach among the people.