Insurance means protection against any tragedy. Most people do insurance to themselves and their family. The main purpose of taking insurance is to recover in case any disaster happens. Insurance does not increase your financial status, however it is a service charge taken by insurance companies to give you protection against any kind of mis-happening. Insurance can be of short term or long term; in either case people have to pay some amount to the insurance companies for a limited time. The amount, which is paid by people to insurance companies, is called premium and decided as per the scheme taken.
Now the problem is that how to decide that which policy is suitable for you, Well for that you can go to an insurance agent and discuss all your needs and budget. The person will suggest you the best policy as per your situation and you need to trust the agent. There is one more way to get insurance is that do some research on internet, for example find out the companies who provide insurance and go to their website, you will get all the information about the insurance policies they provide. Don’t just check one company and decide anything, but check 2-3 companies and see which company is reliable and giving you extra benefits other than insurance.
How to decide the insurance
1. First of all figure out what kind of insurance policy you need and check weather the policy you are going to take covers all the things you need or not.
2. There are different types of policies available in the market. Some policies are based on time and some are based on time. If you are taking insurance policy for long term then the premium amount would be lees, however if you taking policy for short term then the premium amount can be high. Second thing is that you need check the policies thoroughly because 2 kinds of policies can have the same amount but there is a possibility that the benefits under those polices differ from each other. Some policies cover all kind of damage while some does not. So be very careful while selecting an insurance policy.
3. As I mentioned above if you will go for an agent then he will tell only about those policies that his company is selling but if you will go for your own and search on Internet then you will have different companies and insurance policies to select. So better you decide first which one to choose.
4. If possible investigate about the company whose policy you are going to take. Check if somebody from your friend circle or relative has already taken policy from the company and they are satisfied with the company’s services. Check the record of company like how old the company is and how much customers they have.
Types of Insurance
There are so many types of insurance policies available in the market. You can insure your life, health, home car and so many others. Below I am going to discuss some of the most common policies, which people normally takes.
This kind of insurance is basically related to your and your family’s health related problems. Once you have taken health insurance either for yourself or for any of your family members you can go to registered hospital for any kind of treatment for which you are registered and the payment will be done by insurance company, however you will have to submit bills to them to claim your amount.
Most people get health insurance from their office itself for a limited amount and they can nominate their family members as well in the policy. Always keep in mine some points while taking health policy like how much premium you will have to pay, for how much you are covered and for what all disease.
Today almost everybody knows about this policy and people are even aware of the importance of life insurance. Life insurance as understood covers your life in case of any mishappening. People take this policy so that if something happen to their life then their family would have something to survive. The money you invest in Life insurance will come back to you only after maturity or in case of death of the insured person. People who come under income tax slab also get benefit from the insurance and get tax rebate. Following things need to be taken care while choosing a life insurance plan.
1. The policy should be in a person’s name that is earning member of the family since that person will have to pay the premium amount of the insurance
2. Try not to take policy in our children’s name, take the policy for other family member for the benefit of your children
3. Always keep the insurance amount less so that you can invest in other financial plans.
4. Never taken expensive plan like credit or mortgage life insurance, instead always go for general life insurance.
5. Discuss each and everything about the policy from the agent who is giving you the policy like for how much amount you are covered and how much you will get at the time of maturity. What would be the premium annually, half yearly, quarterly or monthly etc?
If you have your own house and you want to get recover from any kind of damage to your house then you should take this insurance. People take this insurance to protect against damage from any kind of natural disaster. All insurance companies have different rating for the insurance they provide, so you need to check which company is has what standard for each rating.
While choosing a plan check what all have been covered in the policy apart from the house, for example garage etc. There are two types of cover resale cost and rebuild cost. Rebuild is a bit expensive but provides better coverage. Mostly when you take home insurance policy it does not cover the households so you need to check this also. If you want to cover households also then you can do so by paying extra fee. Make sure the cover has replacement value.
These days there is so much crowd on the road in big cities and in small towns as well. So people who have their vehicles must cover with auto insurance. This kind of insurance basically covered you car or scooter from any kind of damage happens on road.