Insurance on your mind? Remember these points
Here are 5 aspects which you should always remember in order to maximise the benefits provided by a policy
 "Insurance-on-your-mind")
Insurance-on-your-mind
Human beings have a lot on their plate today, with the brain burdened with remembering multiple things. Sure, technology has ensured that we don’t forget the birthdays of our loved ones, or even worse, our anniversary dates, yet being who we are, we often forget multiple occasions. Now, forgetting an anniversary or a birthday might land us in a soup for a few days, but given our resourcefulness we are bound to find a way out of such sticky situations. But what happens if we forget certain points which can have a lasting impact not only on our wellbeing, but also on the wellbeing of our loved ones?
The mere thought of this can make us stand up and take notice of things, for we would not wish to jeopardise the future of anyone we love. One aspect where we need to pay utmost attention is when we buy a health insurance policy a life insurance policy, for forgetting things here can leave our family hanging during an unforeseen event.
So if you wish to secure your family through an insurance policy, here are 5 aspects which you should always remember in order to maximise the benefits provided by a policy.
1. Read the fine print – By far the most common mistake made by everyone, ignoring to read the fine print can have disastrous consequences. Sure, one might argue that paucity of time is a major reason to avoid reading the paperwork, but it is absolutely imperative that everyone who is looking to buy a policy reads all the terms and conditions. There could be instances wherein an insurer does not offer cover under certain cases, in which case the policy could become redundant for a particular individual.
Additionally, reading the terms and conditions can also help one understand the policy, which could help them in making the final decision.
2. Compare options – “The more the merrier”, this is something we have heard on multiple occasions. India’s development has resulted in a number of insurance companies offering a host of products. A number of us spend hours when we go shopping, often comparing everything on offer before coming to a decision. But when it comes to insurance, most of us end up buying a policy which is suggested by a friend. Sure, this eliminates the hassle of research, but don’t you think that your family deserves the best? Wouldn’t you buy a policy from the best life insurance company in India, rather than settling for one from a company which is yet to catch up with the biggies?
Remember that your insurance provider is like a partner, and it pays to spend time finding a partner who meets your expectations. Additionally, research can also help you find a policy at a better price, making the entire effort worthwhile.
3. Buy a policy which suits your needs – You don’t go out and buy a shirt which is too small for you, right? Imagine the discomfort of wearing such a shirt. Most of us try out the product before buying them, and while we cannot physically try out an insurance policy, we can assess our needs and buy a policy which matches them. Insurers offer different plans designed for different purposes. For example, one could invest in a term insurance policy if he/she is looking for protection for a specified period of time. Alternately, one could invest in a retirement plan to secure his/her future.
4. Ensure the policy is affordable – Advancements in banking have helped us satiate our hunger for products even if we don’t have the money with us. We use our credit cards to buy an item now, paying for it later, through credit card EMIs. This ease, however, can land us in debt, for it is possible for expenses to overshoot our income. So before you buy an insurance policy, ensure that you can afford the premium. Typically, the premium amount is directly proportional to the sum assured.
While we would all love to have a high sum assured, choosing this can have an impact on our finances. One could use premium calculators to compute whether a particular policy is affordable or not.
5. Utilise the tax benefits – Imagine buying a product which is not only useful, but also helps you save money. An insurance policy does exactly this. For the uninitiated, the premiums paid towards a life/health insurance policy are eligible for income tax benefits, which essentially means that you end up saving money each year. This is one of the most underutilised benefit of insurance policies, which, if used wisely could bring down the tax burden on an individual considerably.
The human brain is a thing of beauty, capable of performing tasks we never thought possible, yet when it comes to remembering certain things it can let us down. While we may never be able to actually comprehend how it works, we could work on it to ensure that it doesn’t forget these simple points in the future.