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Buying insurance and buying the right insurance are two distinct things. Are you guilty of the same? Take a look at some of the common mistakes that people make when shopping for insurance plans.
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About Health Insurance
Health insurance is most vital buy choices a man can make. It ensures you and your friends and family against life's unforeseen turns. With the right medical coverage, it's conceivable to save money and save lives.
www.PolicyAdvisor.in
Buying insurance and buying the right insurance are two distinct things. Are you guilty of the same? Take a look at some of the common mistakes that people make when shopping for insurance plans.
www.PolicyAdvisor.in
1. Wrong priorities - An excellent sample of poor
organizing happens toward the end of the financial year, when
individuals hurry to purchase life or medical coverage for the
tax-saving benefits. Tax benefits are indeed wonderful but they
should not dictate the coverage, premium or other details of
your insurance policy Buy a plan based on its merits and your
needs .
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2. Confusing insurance with investment - People are frequently disappointed to discover that their
protection strategy offers no or constrained 'returns'. This is
because insurance is strictly about risk protection whereas
investment is about growing your savings. Despite the fact that
packaged protection cum-venture items work for the right clients,
the profits have a tendency to be lower than, say, for a common
asset. Along these lines, it is essential to perceive the motivation
behind protection before purchasing a strategy. www.PolicyAdvisor.in
3. Choosing the cheapest policy - One major
mistake that people make is to pick the plan that costs the least.
You see this over a wide range of protection life, auto, travel,
and so on. Your protection spend ought to be resolved not by
the least expensive premium but rather by the greatest scope
that you require and can afford,
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4.Picking the wrong plan - This can be a major issue
because the insurance would not cater to your needs
satisfactorily. For example, why might you purchase a ULIP
(where the premiums are regularly high) when you could get a
higher death benefit from term life insurance? Then, a 50-year-
old ought not to purchase medical coverage unless it has a high
reestablishment age.
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5.Trusting the agent blindly - The point to note is
that specialists are hoping to make a deal. Consequently, they
may bypass certain key viewpoints, which could bring about mis-
offering. Regardless of the fact that your specialists are
generally fair, he/she does not have the required knowledge
about your specific financial needs and may not inexorably have
the capacity to propose the perfect product for you.
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Let us consider an example. a Various insurers providers are right
now offering high-esteem medical coverage strategies with scope
of between Rs. 25 lakh to Rs. 50 lakh. These policies are far
more comprehensive than standard health plans, but their
premiums are also extremely high. It might be reassuring to know
that your plan covers everything from dental work to diagnostic
tests, but note that most people do not incur more than a few lakh
rupees per year on hospitalization and medical care. Given this
connection, do you truly require the Rs. 50 lakh scope?
6.Not doing the math -
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7.Underinsuring - Underinsurance is an especially
treacherous issue on the grounds that you have protection,
sufficiently not of it. Imagine filing a claim for car repairs only to
learn that your insurer will fund only a fraction of the repair
costs. Why? Since you are underinsured. The issue is amplified
on account of medical coverage, for instance, when you look for
treatment trusting that the protection will take care of a large
portion of the expenses, just to find that it won't.
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Thank You
