Moneycontrol
Apr 03, 2017 12:03 PM IST |

Ways to save money while buying insurance policy

To buy an insurance policy without having to spend much is an art. Here are some tips to minimize the premium outgo.

ByNaval Goel
Ways to save money while buying insurance policy

Naval Goel

Most people don’t opt for an insurance policy, majorly because they think that it will turn out to be an expense rather than an asset. But they forget that it will be beneficial in the long term. To buy an insurance policy without having to spend much is an art. You need to shop right. Here are a few tips that come in handy when looking to buy an insurance policy without cringing and saving at the same time.

Leverage the variety

The insurance market has a lot to offer. It is not necessary for you to buy or have all types of insurance policies, you should opt for the one that you need the most by considering your budget and other expenses. Dig deep into the market and you can find one that meets all your need, for sure. There are different policies with different premium rates and different requirement of payment.

Do not forget to compare when buying and renewing

Once you have shortlisted the kind of insurance you need, you have then got to look for competitors. There are several comparison sites that help you in finding a suitable policy in sync with your budget. If you are still not satisfied, there are insurance advisors whom you can look up to.

Do check thoroughly

The terms and conditions do seem boring but you will be the one who will be bearing the consequences of not reading. Check every minute thing carefully. The discounts, riders, coverage, etc., are a few of the things that you need to have a keen eye for.

Opt for the highest deductible

Always keep in mind that the higher the amount of deductible, the cheaper the policy. Other than your budget, choose a policy that has higher deductibles for more benefits.

Buy when young

The best way to get a policy at lower premiums is to buy at a young age as then you are less prone to diseases. Even if you have a plan that covers your young son or daughter, get them an individual policy.

Choose a term life plan over a whole life plan

A term life policy provides coverage for a pre-fixed amount of time with fixed rate of premiums and death benefits. So it is any given day advantageous over a whole life insurance policy.

Do not avoid the medical exam

People with a lower budget for premiums should not avoid a medical exam at any cost. There are several insurance companies that offer two different kinds of policies – Guaranteed Issue and Simplified Issue which offers coverage without having to undergo a medical check. This may sound convenient but such policies prove to be costly than underwritten policies, if you are hale and hearty.

Always get insured from a single insurer

If in the future, you would want to get any other coverage, choose your existing insurer as they have multiple offers for their existing customers like waiver, discounts, etc.

Do not file claims every now and then

Having an insurance policy does not mean that you file claim for even the smallest of problems. For e.g., if you have a mediclaim and are having a fever, pay out of your pocket rather than filing a claim. Of course, if the situation is getting out of hand, you can use it then.

Do not pay too often

Market gurus are of the opinion that instead of selecting a monthly plan, you should go for half yearly or annually. You will notice yourself that monthly premiums will turn out to be more expensive in comparison to the other two.

All types of insurance policies are a must. Moreover, you also get tax benefit. So get yourself one, today!

The writer is founder and ceo of policyx.com
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