Till recently, Insurance in India was not given much importance. People bought insurance policies for tax deduction purposes. Many companies also covered their employees and their families with life and health insurance. However, most of the population was still without an insurance cover. Gradually, people realized the importance of insurance and started insuring themselves and their families.
Health insurance is also commonly called the "Mediclaim" insurance policy, where a certain premium is paid to cover the cost of hospitalization and other expenses, as mentioned in the policy document. The standard terms can include ambulance charges, room rent, medications, clinical tests, and other incidental expenses, as mentioned in the policy document. Health Insurance covers you for one year from the date of issue of the policy.
Individuals with pre-existing diseases like diabetes, heart ailments, etc. can also get insured by paying a higher premium. However, most companies have a waiting period before the individual can claim for any pre-existing disease-related hospitalization.
Health Insurers cover individuals up to the age of 65 to 75 years. However, certain insurers offer lifelong coverage. This means that you do not have the tension of what happens when you are no longer insurable. This is a good option, as you are prone to diseases when you get older.
It is essential to know the insurance company. Health insurance companies pressurize you into buying their policy. Remember, the policy should meet your requirements. Agents tend to sell you policies that fetch then better commissions and, in the bargain, sell you a product that you do not want. To prevent this, the government constituted an authority that regulates the workings of all insurance companies in India
The Role of IRDA
The IRDA (Insurance Regulatory and Development Authority) regulates the insurance industry by passing rules and regulations for insurance companies. They basically protect the customers from getting short-changed. Customers can approach the IRDA ombudsman if they have any valid complaints against any insurer. Every policy comes with a fifteen-day return statement. The insured person can return the policy within the fifteen days if they are not satisfied with the policy.
Critical Illness Insurance – Is It Worth It?
Critical care of a family member drains the resources and life savings of the family. It is advisable to opt for critical illness cover because any hospitalization is going to cost you a bomb. The insurer takes care of part of the full cost of hospitalization. Having this option gives you peace of mind and won't destroy you financially. Critical illness insurance covers major illnesses like cancer, heart problems, renal failure, and other diseases that are specified in the insurance policy document. Generally, critical illness insurance is available as a rider to your standard health or Mediclaim policy.
Personal Accident Insurance
Personal Accident Insurance is mandatory under the law for all vehicles. In the case of an accident, the insurer will compensate the insured for any damages to the vehicle. The policy covers both minor and major accidents It covers total and partial disability as well as temporary disabilities that prevent you from making a living,
The compensation is payable to the licensed driver at the time of the accident. The driver can be the owner or a driver designated by the owner of the vehicle. The policy death benefits to the family of the car owner
Don't Buy Insurance That is not Suitable for You
Shortlist two or three insurance companies and make a detailed comparison and pick the one that is suitable for you. If you are still confused, you can approach an independent financial adviser who will work out the best solution for you. You can also contact the insurer for details of their policy.