How to get more insurance coverage and pay less: Tips for term life, health and auto insurance
Insurance has become important for everyone. Life’s uncertainties make adequate coverage for life, health and motor vehicles mandatory. Insured persons must pay a high premium for an optimal benefit. However, there are many ways policyholders can secure better coverage while paying less at the same time. Here is an overview of these options for health insurance, term life insurance and auto insurance.
Term life insurance
Term life insurance provides coverage at a fixed rate of payments for a specified period or term.
According to Rohit Sadhu, co-founder and COO of Ensuredit, an AI-powered insurance platform, the cost of term life insurance can be reduced by taking out term coverage instead of taking out term life coverage. for life or up to 80 years. .
“The whole point of the term plan is that it has to cover the person’s liability, i.e. a home loan or any other loan, and once the same loan is terminated, the asset itself even will take care of any sudden unfortunate events,” Sadhu said.
“Similarly, by taking a limited premium payment option or paying a single premium in a term policy, the premium can be reduced by up to 50%,” he added.
Health insurance top-ups can be purchased by those who have medical insurance from their respective employers. It can help to get very comprehensive coverage while paying very little.
Experts say critical illness policy can provide higher payout benefits at a relatively lower cost due to restricted coverage for a few critical illnesses instead of general coverage.
“By opting for higher deductibles in health and home insurance, customers can benefit from lower costs. A deductible is an amount the customer is able to take care of himself, which is usually 5-10% of the claim amount. But through these deductibles, customers can enjoy a premium savings of 10-20%,” Sadhu said.
“By opting for a 2-3 year health insurance policy instead of an annual policy, customers can enjoy a 20-30% reduction in the overall premium, as well as the added benefit of a higher bonus sum insured,” he added.
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In car insurance, customers can benefit from reductions by opting for higher deductibles. Normal deductibles in a private car are Rs. 2000 and if a client is ready for deductibles of Rs. 10000 per occurrence, he will get a premium reduction of 10-20%.
Group health insurance
Group health insurance products can be cheaper in many situations. Products such as personal accident or critical illness cover are very low cost. One of the main ways is to be part of a group or association that offers group insurance products. These products can be specified in health insurance and life insurance.
“Many of the life and health insurance products that consumers may be entitled to by virtue of their membership in this group/association may provide access to much cheaper products. Likewise, membership in key auto associations can also help access discounts,” Sadhu said.