How to select the right insurance plan

We all need insurance at some point in our lives. Choosing the best insurance plan that best suits your needs is an important decision not only for you but also for your family and it can be complicated. Whether Life Insurance, Health, Automobile, Personal Accident, Retirement Plans, Travel, Home, etc. With more than 30 insurance companies, offering more than 300 products, the challenge facing customers today is not buying a policy but buying the right one. policy that best suits your needs.

But insurance is considered a complex subject and not many have the time or inclination to understand the nitty-gritty of policies. Therefore, the need of the hour is to have a simple, jargon-free explanation of the Terms and Conditions and a step-by-step guide for customers to choose the right policy.

Follow these simple steps if you are thinking of taking out an insurance policy:

1) Be sure of your requirements: Not all policies are created equal. For example, under Life Insurance are Retirement Plans, Children’s Plans, Term Insurance, Endowment Plans and ULIP. Therefore, it is important that you choose a plan that matches your requirements. If you’re looking for pure protection plans, then a term plan is for you.

But if your goal is to have a combination of savings with protection then your options are Children’s Plans, Retirement Plans or ULIP’s. Here, your goal would decide what type of coverage you should choose. For example, if your objective is to save for your Child’s future, then the Children’s Plan would be ideal, but if you want to save for your retirement, the Pension Plans are the best option.

2) Calculate the coverage you need. Many factors come into play when deciding what coverage you need. For example, in Health Insurance, your age, medical history, city of residence, lifestyle, etc. is considered when deciding the amount of coverage. On the other hand, in Life Insurance factors such as your income, liabilities, number of dependent family members, etc. help decide the amount of coverage. Therefore, a 30-year-old with a home loan and 2 children attending school should take higher coverage, while a 45-year-old with no liabilities and whose children have started working may opt for lower coverage.

3) Compare plans: Comparing plans doesn’t just mean comparing the price. The cheapest is not always the best. You should compare the features, benefits, exclusions and select the plan that suits your needs. For example, when selecting a health plan for your parents, you should choose a plan that has a minimal waiting period, as elderly parents may require hospitalization at any time. Also, comparing car insurance every time, during renewal can be very beneficial plans, you can get a discounted premium, and you can even get additional riders.

4) Read, understand and become familiar with the terms and conditions of the policy: After you have zeroed in on the policy you need to read, understand and become familiar with all the terms and conditions. This is important to avoid surprises and heartbreak later. For example, in Health Insurance, you must know the Room Rent Limit, Waiting Period, Exclusions, Daycare Procedures, Network Hospitals, etc. Similarly, on a life insurance policy, you need to factor in the expiration benefit, death benefit, permanent exclusions, etc. For example, many Health and Life insurances do not cover death or hospitalization due to the practice of adventure sports or war.

5) Seek Expert Advice – If you ever get stuck with any policy, you simply need to seek expert help. If you ever don’t understand the policies or aren’t sure which plan is best, just talk to a specialist who can discuss your needs and suggest the best option.

Just pay attention to these small details that will surely benefit you in the long run.