Step-by-Step Guide to Choosing Insurance
- Identify Your Needs: What do you want to protect? Income (life insurance), health (health insurance), assets (property/motor insurance)? Each need requires a different product.
- Determine Coverage Amount: Life insurance: 15-20x annual income. Health insurance: ?10-25 lakh for metros. Don't under-insure to save on premiums.
- Choose the Right Type: Term vs endowment for life insurance. Individual vs family floater for health. Base your choice on your specific situation, not what's popular.
- Compare at Least 3-5 Plans: Look beyond premiums. Compare CSR, exclusions, sub-limits, network, rider options, and renewal terms.
- Read the Policy Document: Before buying, read the complete terms and conditions. Pay special attention to exclusions, waiting periods, and claim procedures.
- Check Claim Process: How easy is it to file a claim? Is there an app? What documents are needed? How long does settlement take?
- Add Relevant Riders: Critical illness, accidental death, and waiver of premium riders are worth considering for comprehensive coverage.
- Review Annually: Your insurance needs change with life events. Review and update coverage every year.
Questions to Ask Before Buying Insurance
? What is the company's claim settlement ratio for the last 3 years?
? Are there any room rent or treatment sub-limits?
? What is the waiting period for pre-existing diseases?
? Is the policy renewable for lifetime?
? What are the co-payment requirements?
? How many network hospitals are in my city?
? What is the claim process — online, offline, or app-based?
? Are there any free look period cancellation charges?
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