Insurance policy is a contract between the insured and the insurer which usually determines the claims which the insured is supposed to be paid by insurer legally. Here are some of the best tips for any insurance policy;
Buy As Early As Possible
You can get the extra benefit if you buy an insurance policy at an early stage. Like a low premium rate is offered for young buyers, but it is not only about benefit because an insurance bought when you don’t need can prove to be the best insurance policy when you need.
Decide The Cover
Choose your cover precisely while going for the insurance policy. You can’t decide your cover just by estimating a particular value which you will need for the future. You need to calculate your cover based on asset, debts, lifestyle, number of dependents and inflation. Only then you can come to a right cover for your insurance policy.
With the easy availability of Internet everywhere, it has become very much easy to compare policies, which is also very much necessary before buying a policy. While comparison, you may find two policies with almost same benefit, but the difference in the premium rate will be huge.
Always be truthful while giving your details in the insurance form. You might think that hiding some facts will give you short-term benefit, but in the long term, it will be a much bigger loss. If you don’t want your claim to be rejected, then it is better to give actual details to your insuring company.
Check Claim Settlement Ratio
Always test the claim settlement ratio of the company before buying it. The claim settlement ratio is the ratio of claim settled by a company to the number of claims made. What will be the use of insurance policy chosen by you which will not give you any benefit when required.
What’s Not Covered?
There are many situations in your insurance policy under which you will not get any benefit. These clauses in any insurance policies are called exclusion. You need to understand the exclusions from your cover so that there will be no bas surprises later.
Choose Your Rider
While the addition of a rider can do wonders to your policy, but it doesn’t mean that everyone needs a rider. There are many riders available; you need to decide which rider you need, or you even need it or not because adding a rider will increase the insurance premium.