These Insurances Can Save a Lot of Money

Logically speaking, if the risks are the same, then the premiums should be the same across the board. But that is not always the case. Premiums on insurances differ. Cheapest does not necessarily mean the worst, and costliest does not necessarily imply comprehensive.

Therefore, in the insurance market, it is necessary to match requirements with insurance policies rather than matching insurances with requirements.

Tips on Buying Insurances

Here are some simple things to do before buying any insurance.

A) Find out about the insurance company. This means checking the reputation of the business as a reliable company, especially how long it has been in the business and is it in good financial position.

Usually, the longer the business has been around, the more conversant it is with the claims process, and therefore, it would be able to process the claims faster.

B) Find out the extent of coverage. Many people do not read such clauses. They simply look at the sum assured and think that they would be paid that much should the unfortunate event occur.

But in many insurances, for example in the case of health insurances, there are sub limits. The insurance company limits the amount payable towards room rent, procedures, medicines, etc. Hence it is necessary to check such limits and compare them with the prevailing costs.

It may at times be necessary to buy additional coverage to fill the gaps in the costs because of inflation. In the long run, benefits of such additional purchases will far outweigh their costs. Moreover, there are products such as top ups, and super tops in health insurances.

Likewise, there are term insurances in life insurances which can help too, especially if the businessman has borrowed heavily at any point of time, and does not want his family to be burdened with them should he die.

C) Find out about requirements specific to you, your home, your family, or your business;

D) Find out about ease in fulfilling the requirements at the time of making claims;

E) Find out whether the insurance company tries to evade its obligations

F) Find out whether the products offer decent returns if the insurances are also going to be used as savings;

G) Find out if there are some additional benefits associated with such policies, such as: can they be pledged with banks or even the company for raising required finance? Similarly, buying different insurances from the same company may entitle people to discounts.

H) Find out how to reduce the premium based on other factors such as a home insurance includes coverage for garage, and automobile insurance also includes such coverage. Effectively, one such coverage can be avoided.

I) Premium on the policy.

Action Plan

Based on these factors, now prepare a spread sheet giving each insurance policy marks anywhere from 1 to 5 and zero in on the policy that is most suitable. Usually, insurances may have to be bought as a la carte because requirements differ from person to person and family to family. Policies are also designed to offer such flexibility.

For more details you can call any insurance company or agent. Do not finalize the purchase immediately. It would be prudent to mull over it before purchasing the insurance coverage. Sharing this information including the spread sheet with friends helps them also to purchase products that they need rather than end up with what is thrust on them by insurance agents.

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