5 Useful Tips for Finding Yourself the Right Insurance Policy

India has 53 registered insurance companies out of which 29 are non-life insurers and 24 companies offer life insurance. Between April 2015 and February 2016, premium income of more than Rs.1 trillion (US $15 billion) was recorded in India. By the end of 2020, insurance companies expect to increase their penetration of the Indian market by another 5%. Most companies offer additional advantages, like loan against insurance policy, making it very popular in the country. Currently, India represents the largest life insurance market, with around 360 million policies in action. With the emergence of more and more service providers, policy holders are getting better deals but it has also increased the number of frauds. So, it is very important to choose the right company as well as policy for yourself. Factors like benefits and premium should be considered.

Things You Should Keep in Mind

1. Analyze and Plan: Before you go to shop for clothes, you analyze exactly what you need. In the winter, you don't go looking for shorts. Insurance works in exactly the same way. It is important you do your research and plan accordingly. For example, which family member do you want to cover? Do you aim for the long term or are you looking for short term cover? This will help you narrow down the options.
2. Set Priorities: You need to understand the concept of 'sum assured'. It is the maximum amount that you can claim in a policy year for medical coverage or as the payment at the maturity of another policy. If you want more coverage, then you'll have to pay a higher premium. So, set your priorities from the very beginning.
3. Read the Clauses: It is very important to understand your policy and for that you need to read the terms and conditions very carefully. Most companies have a number of clauses that are very often difficult to understand. If you have any doubts, don't be shy to ask the agent or the insurer.
4. Look for Extras: Some of the policies offer extra benefits, like loan against insurance policy, and even offer discounts on premiums for some time. You may not want to claim these offers right away but they can be beneficial in future.
5. Go for a Trusted Brand: Most of the new brands try to lure customers by offering discounts but on most occasions, it is a trap. Do not fall for such offers. Do extensive research about the brand and prefer to go for an already established firm.