All the newspapers, magazines and any other media are screaming that it is the customer’s responsibility to read the policy documents before buying an insurance policy.

 

Yes we agree that its customers responsibility to be aware about what they are buying.

 

But the question arises...

 

• Is general public really aware what to look for in an insurance policy?
• Do they understand the intricate policy documents?

 

The answers to the above questions is "NO"

 

Most of the people we come across don’t know what does each term in insurance policy document mean and what they should really look for before buying it.

 

And there are lots of things to watch out for depending upon the type of insurance policy you are buying.
Most important is recognising the nature of the policy, and would they suit your requirements.

 

1. Life Insurance
   
   While buying life insurance the only policy which makes sense to cover your insurance requirement is TERM insurance.
   
   You can buy TERM insurance from any Life insurance company which fulfils at least the following criteria’s.
    
   1. Existence of insurance company for at least 5 years.
   2. Claim Settlement Ratio of company should be at least 75%.
   3. Premium charged by the company.
   4. Claim Settlement Procedure
   
    
2. General / Non-Life Insurance
   
   General / Non-Life insurance has different type of products which an individual should buy to cover their various insurance requirements.
   
   Criteria’s of different general insurance products are different. Most important of them are given below.
    
   1. Mediclaim / Health cover
       
      1. Existence of insurance company for at least 5 years.
      2. Claim Settlement Ratio of company should be at least 75%.
      3. Individual limits on room, ICU and ambulance charges under the policy.
      4. Renewal Age limit of the Mediclaim policy.
      5. Coverage of Pre-Existing diseases from which year onwards.
      6. Co-payment clause (If any)
      7. Cashless facility
      8. No Claim Discount / Cumulative Bonus
      9. Premium charged by the company.
      10. Exclusions under the policy.
      11. Claim Settlement Procedure of the company.
      
       
   2. Personal Accident cover
       
      1. Existence of insurance company for at least 5 years.
      2. Claim Settlement Ratio of company should be at least 75%.
      3. Sum assured you can get under the policy depending upon your income.
      4. Percentage (%) of benefit under Permanent Total Disablement.
      5. Percentage (%) of benefit under Temporary Total Disablement.
      6. No claim Bonus
      7. Premium charged by the company.
      8. Exclusions under the policy.
      9. Claim Settlement Procedure of the company.
      
       
   3. Critical Illness cover
       
      1. Existence of insurance company for at least 5 years.
      2. Claim Settlement Ratio of company should be at least 75%.
      3. Total number of diseases covered under the policy.
      4. Name of the diseases covered under the policy.
      5. Renewal age limit of the critical illness policy.
      6. Survival period after the diagnose of disease in case of any claim.
      7. Waiting period from the commencement of policy.
      8. Premium charged by the company.
      9. Exclusions under the policy.
      10. Claim Settlement Procedure of the company.
   
    

Asking the above points to your insurance agents before buying any type of insurance policy will certainly help you to select the right insurance policy for yourself and your family.

 

It will also ensure that you are no longer cheated or misguided by your insurance agent.

 

In case you are not aware about meaning or benefits of any type of insurance policy then CLICK HERE for free insurance guide from PersonalFN.

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