No one can predict what will happen in life, but we can certainly prepare for it. Sometimes, a mountain of troubles, whether related to health or finances, can suddenly fall on you and your family without warning. In such situations, the right insurance acts as a safety net. However, choosing the right insurance and coverage can be tricky. Let us help you with this.
1. Assess Your Needs
Before buying any insurance policy, assess your financial situation and potential risks. For health insurance, consider your and your family’s medical history.
For life insurance, evaluate your income, liabilities, and the financial needs of your dependents.
2. Choose the Right Sum Assured
Make sure the sum assured meets your needs. For health insurance, a coverage of Rs 10 to 15 lakh for your family is ideal, as medical expenses keep rising.
For life insurance, the sum assured should be 10 to 15 times your income to provide your family with financial security in case of an emergency.
3. Compare Policies and Features
Insurance policies offer different coverage and premium amounts. Use online comparison tools to check features like cashless hospitalization, critical illness benefits, and settlement ratios. Choose a policy that provides good coverage at an affordable price.
4. Check Riders and Add-ons
Many insurance policies offer optional riders, such as accidental death benefits, critical illness coverage, or maternity benefits. Add-ons can be included based on your specific needs.
5. Understand Exclusions and Waiting Periods
Every insurance policy has exclusions—conditions where a claim is not covered. For example, pre-existing illnesses in health insurance may affect your coverage. Insurers may impose waiting periods, exclusions, or higher premiums for certain conditions, which can impact your claim eligibility. It’s crucial to understand these details before purchasing a policy.
6. Pay Attention to the Claim Settlement Ratio
The claim settlement ratio (CSR) shows how many claims the insurer has settled out of the total claims in a year. A high CSR indicates reliability and efficiency, and that your claim is likely to be approved without issues, building trust in the insurer.
7. Review Premium and Affordability
While a policy with high coverage is beneficial, ensure that the premium fits within your budget. Choose a policy that is affordable and offers good coverage.