How To Buy An Insurance Policy – Steps To Be Followed

Insurance Policy is a management of risk and certain amount is paid to cover the risk and the amount is paid according to the policy on a monthly basis, that payment is called premium. If any loss occurs to the insured party then the promising party after the investigation will have to fulfill the contract of Insurance policy.

There are various types of insurance such as: Life, health, home, accident, sickness, unemployment, property. The following are the steps to be followed to buy an Insurance Policy:

Life Insurance Policy

  • First you need to choose the company because in India there are numbers of companies and possibility is that maybe many of them might not be trustworthy, so choose the company according to your choice.
  • Then you need to decide how much premium you would be able to pay and the cost depends on earning factor.
  • Formalities such as filling the documents, you can fill the form online also and a person will get in touch to fulfill the formalities and to guide you further.
  • Do not provide the false details on the form. Always be honest and think about the nominee and carefully fill the asked details.

Health Policy

  • Choose the cost for cover i.e., 2 lakh, 3 lakh, 5 lakh.
  • The Hospitals coverage due to illness or accidents and the covers given are like, nursing allowance, hospital expenses, day treatment, check up of health for 4 claims are free.
  • Ambulance services are also included in the cover.
  • Maximum age to get the policy is 65 years.

Vehicle Policy

  • First party plan

In this Plan the insured party will get the cover that is been decided by the insurance company.

  • Second party plan

The cover is decided like, person buy’s a vehicle costing Rs.50, 000 and takes the plan, the company will decide a cost after calculating its actual cost after 5 years and it comes to be Rs25000, the actual amount which an insured person will get is just half of Rs.25, 000.

  • Third party plan

In this plan if the insured party met with an accident, then other party will get the insurance claim.

As our life is unpredictable these insurance gives us a cover and a relaxation that if something happens then at least our family is secured. Therefore it gives a peace of mind and provides safety and security.

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