Insurance Tips

Insurance Tips

• Always avail insurance cover at an early age
• Insure all family members with an appropriate and customized policy cover
• Always take a policy which gives money back option. However, this option is not applicable in health insurance policy covers.
• Always avail a Term Insurance for lower premium. This is especially recommended for Life Insurance policies.
• Purchase customized insurance cover up to 15 times of an individual's income
• Always remember to pay insurance premiums on time. i.e. on or before the policy expiry date.
• Always spread risks by opting for different

  type of insurance plans. In short, rather than putting all eggs in one basket, diversification strategy is encouraged while investing in insurance, similar to the strategies pursued while investing in various financial schemes.

• When an individual's life insurance policy matures there must be an insurance company that reimburses the amount to the concerned individual. It is always recommended to purchase insurance policy from a reputed insurance company as insurance is a life-long investment strategy.
• Before investing in an insurance cover from a particular insurance company, it is always recommended for the layman or a common-man to check the claim settlement ratio of that concerned insurance company.

• While availing an insurance cover, do not forget to nominate his/her nearest relative or dependants.

• For employees working in corporates, apart from the corporate health insurance policy provided by his/her employer, it is recommended to avail an additional (or individual) health insurance policy cover accompanied with Critical Illness and Accident Policy cover at the earliest, so as to derive the maximum benefits of insurance cover. Unlike in USA, where options of continuation of health insurance policy cover are available to an individual after resigning from an organization, the same is not applicable in India. In India, once an employee resigns from the organization, the benefits of health insurance policy cover provided by the previous employer cannot be carried forward to another organization where he/she joins as an employee, albeitsome exceptions. It must be noted that terms and conditions including SLAs (Service Level Agreements) for health insurance policy covers for employees across organizations varies drastically not only in scope of the coverage but also in terms of products and services provided under the insurance cover. Hence, it recommended for the employees to avail an individual health insurance policy cover apart from his/her existing health insurance cover provided by the employer.

References:

1. How Insurance Agents and Brokers Make Money - (http://businessinsure.about.com/od/agentsandbrokers/a/agentnbroker.htm)
2. Term Life Insurance Quotes Give You Details About the Policy - (http://EzineArticles.com/?expert=Delnaz_Thompson)
3. The Roles and Responsibilities of a Life Insurance Agent - (http://ezinearticles.com/?The-Roles-and-Responsibilities-of-a-Life-Insurance-9. Agent&id=3514459)
4. Roles and Responsibilities: A Delicate Balance - (http://www.irmi.com/expert/articles/2002/neuschaefer04.aspx)