Tips to buy most essential insurance policies

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Most investors begin to protect themselves from the risks involved, including becoming a millionaire for their long-term goals. A health insurance policy covers hospital bills without saving money.

There are other risks that you need to protect yourself from losing your savings halfway before achieving your goals.

Term insurance

A term insurance plan is a low-cost, high cover plan, which is the purest form of life insurance. The policyholder pays a premium for a fixed period and receives nothing from surviving this period, but in the event of death during this period the family will receive lifetime coverage.

Tips for Buying a Term Insurance Plan

  • Choose the term or term of the policy that matches your retirement age
  • Explore 3-4 preferred insurers and then decide from whom to buy based on premium
  • Choose online purchase for a lower premium Inform the nominees.

Health insurance

Medical inflation is rising rapidly and even you and all your family members need adequate coverage. If you have a young family with children, choose a family floater, otherwise, go with personal health care.

Tips for Buying a Health Insurance Plan

  • Explore 3-4 preferred insurers and then decide based on premium
  • Stick to plain-vanilla plans.
  • Note the exceptions and inclusions in the policy
  • Disclose all medical information at the time of purchase

Personal Accident Insurance

Accidents can cause a disability or death that affects a person’s income. There are accident insurance plans that cover these risks.

Disability coverage includes four accidents that can result from an accident – death, permanent total disability, etc.

Tips for Buying Personal Accident Insurance

  • Choose your preferred insurance company as premiums are almost the same across insurance companies
  • Pay premium based on risk category depending on your income and employment
  • Choose a comprehensive cover that contains four contingencies

Motor insurance

Although only third-party coverage is mandatory, it provides your vehicle with a comprehensive cover. A comprehensive policy with a third-party cover and ‘own damage cover’ will help you save money when your own vehicle is damaged.

Tips for Buying Motor Insurance

  • Explore 3-4 preferential insurance and then compare premium
  • Discounts Available – Talk to Insurers, Brokers
  • Note if the cover note omits any major benefits to the very low premium
  • To reduce the premium, choose Comment or discount
  • Make sure you take advantage of the no-claim bonus

Home insurance

You can choose an independent fire insurance policy that protects your home building from earthquakes, lightning, storms, floods, and riots, or a more inclusive home package policy that includes the contents of your home against theft. The premium is less than 1% of the price of the content or structure. There are two options for protecting your home or content – against current market value, against restoration value, or at the time of claim.

Tips for Buying Home Insurance

  • Choose your preferred insurance company as the premium is the same across insurance companies
  • Keep a list of items along with purchase bills of high-value items
  • Choose personal hazard cover or other add-ons

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