National Insurance Awareness Day 2022: Things to Check Before Buying an Insurance Policy in India

2022 National Insurance Awareness Day: Essential Things to Check Before Buying an Insurance Policy

Insurance acts as a safety net that safeguards individuals at times of adversity when an unfortunate event takes place. However, many people consider insurance futile unless an adversity hits them.  Adversity is unforeseen and no one can predict it. Hence, to fight such adversity, we need the protection of insurance. Moreover, the recent emergence of covid-19 pandemic further reinstated the importance of insurance for people to fight such hard and unpredictable times.  On National Insurance Awareness Day, the objective is to remind each one of us to take time and plan insurance for our own selves and for our families to ensure the safety and security of each member.

So, let’s learn some more about National Insurance Day’2022.

What is National Insurance Awareness Day?

National Insurance Awareness Day is celebrated on 28th June every year to encourage people to ponder about their insurance policies and their needs. The day is celebrated to make more and more people aware about the various advantages that insurance offers  as well as about the various plans that are available for them.

Why is it important to have Insurance?

Insurance is important because it covers us against misfortunes, especially financial crisis, when we face adverse times in life. And we never know when we might face such a dreadful situation. During such hard times, the importance of insurance is recognized. Insurance offers the financial security that we need during times of difficulty. It covers our near and dear ones as well as helps us recover from any loss or damage that we may undergo. National Insurance Day emphasizes on the significant role that insurance plays in our life and encourages more and more people to buy such plans.

Things to consider about insurance awareness before buying a policy

• Get quotes and compare before buying a policy – This is very important as comparing policies allows the insured enough options to choose and buy the best plan that could cover the exact requirement of the individual.
• Select policy based on in-depth research – Always try to search well and get enough information about the policy that you are interested in buying. Don’t buy a policy to save on tax or because someone has suggested it to you. Buy a policy that meets your requirement after researching about it well.
• Consider the mode of buying an insurance– It is important to consider the right mode of buying a health insurance plan. You may visit the nearest branch of your insurer or may buy online as per your comfort. However, buying through an agent might be a costly affair as you have to pay a hefty amount as agent fee. This fee you can avoid by buying insurance online or by visiting the branch of your insurer’s office.
• Consider coverage and premium associated with your insurance plan – The terms – coverage and premium – are two different terms connoting different meanings and both are equally important. Since coverage and premium might vary from company to company, it is important to get a clarity on the specific plan and its coverage offered under the policy that you are willing to buy.
• Verify the Claim Settlement Ratio (CSR) of your insurer –  CSR is the claim percentage settled by the insurer as against the number of claims being raised by the policyholder. Companies offering higher claim ratios are considered the best. So, go for higher CSR.
• Consider the tax benefits you may avail – In case of life insurance plans, they are helpful in terms of saving taxes. So, you can check with the policy provider as to what tax benefits you are getting from your plan.
• Plan any add-on cover if required – Most insurers offer many additional benefits and riders to offer extra coverage. You may opt for such add-on plans if you need additional protection with your comprehensive policy by paying an extra charge.
• Consider challenges/needs that might await you in the coming times – This Insurance Day, consider the challenges that you might face in the coming future where you might seek help from insurance. Some such situations can be children’ education, health conditions of parents etc.
• Are you planning to buy a property  – If you are in search of a house that you want to own or you are planning to save enough to start a business after retirement. In such case, you might like to invest in saving plans to accumulate enough capital.

Conclusion 

As discussed above, Insurance is a crucial instrument that everyone must possess. So, this Insurance Awareness Day, take out some time to consider buying insurance for your health, your vehicle, your home etc., so that you can stay away from any stress during the worst times that the future may hold for you.

 

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