All About Insurance Coverage

Over the past few years, the demand for insurance plans has increased manifold. This is mainly because of the uncertainty that defines our lives so much so that it becomes important to be prepared against the worst. An insurance plan not only provides financial protection during the time of need but also ensures that you and your loved ones are secured for a lifetime. As of now, there are a number of insurance companies offering insurance plans. Some of the common insurance plans include health insurance, car insurance, life insurance, home insurance, and more. So, to provide more details, we will discuss all about insurance coverage in the section below.

Defining Insurance Coverage

Insurance coverage is the risk coverage that the insurance company offers to the policyholder. It serves as a safety net against unforeseen circumstances. For instance, if your car meets an accident, then a car insurance plan will provide the relevant coverage. On the other hand, if you face any medical emergency or get diagnosed with any kind of illness, then a health insurance plan will provide financial compensation. 

Types of Insurance Coverage

Listed below are the different types of insurance coverage that you should know about:

• Health Insurance: Health insurance is a type of insurance plan that provides coverage for medical expenses, hospitalisation costs, and other healthcare-related expenditures. There are different types of health insurance plans such as individual plans, senior citizen plans, women health insurance, and more. Furthermore, it is important to choose the right health insurance coverage to get adequate coverage.
• Motor Insurance: There are two types of plans available under motor insurance, car insurance and bike insurance. While car insurance provides financial protection in case there is any damage to your four-wheeler, bike insurance on the other hand offers financial assistance if your bike meets any accident and incurs substantial damage. It is important to note that third-party bike insurance and third-party car insurance is mandatory for all vehicle owners as it provides financial protection if a third party suffers any damage due to the insured bike or car. Typically, under both car and bike insurance, it is a comprehensive plan that provides all-round coverage.
• Life Insurance: Life insurance provides financial protection for your loved ones in the event of your death. There are various types of life insurance, including term, whole life, and universal life. Assessing your financial goals, understanding the coverage amount, and considering beneficiaries are key factors in choosing the right life insurance policy.
• Business Insurance: Whether you own a small or large-scale business, a business insurance plan will provide relevant financial coverage if there is any damage to your business. For instance, if there is a property or third-party damage who is involved in your business, then the relevant coverage will be offered under a business insurance plan. 

Key Terms To Know Before You Buy Insurance Policy

Listed below are the different terms you need to know before buying an insurance policy

• Premiums: Premiums in insurance refer to the amount that is paid by the policyholder to get insurance coverage. Different factors affect premiums in insurance such as age, pre-existing health conditions, driving record, coverage types, and more. So, analyse your coverage accordingly so that the premiums are affordable. 
• Deductibles: A deductible is the amount you must pay out of pocket before your insurance coverage kicks in. Higher deductibles often result in lower premiums, but it's crucial to assess your financial situation and ability to cover the deductible in the event of a claim.
• Inclusions & Exclusions: Exclusions are specific situations or conditions not covered by an insurance policy. On the other hand, inclusions refer to all that is covered under your insurance policy. You need to thus review the exclusions and inclusions to understand the scope of coverage under your insurance plan. 

• Grace Period: It is the period that the insurance company provides so that the policyholder can pay the outstanding premiums, in case they have failed to do so during the specified time.

• Claim Settlement Ratio: It refers to the number of claims settled to the number of claims raised in a given year. It is important to understand that the higher the claim settlement ratio, the higher will be the efficiency of an insurance company in settling insurance claim requests.

• Add-ons: Add-ons in an insurance plan help in offering additional benefits to the policyholder. In health insurance, you can include add-ons such as critical illness rider, maternity rider, and a few more. On the other hand in motor insurance, you can include add-ons like zero depreciation rider, no claim bonus protector, and more. 

• Policy Term: It refers to the period during which you can get insurance coverage along with your insurance policy. Typically, the policy term is 1,2, or 3 years and can be renewed for a lifetime. 

Tips to Choose the Right Insurance Plan

With so many insurance companies offering a bunch of insurance plans, it often becomes difficult to choose the right plan. To help you out, we have enlisted some of the tips to choose the right insurance plan:

• Analyse Your Needs: First and foremost, you need to be clear about the type of insurance coverage you need. For instance, if you plan to secure the future of your loved ones even when you are not around, then you need a life insurance plan. If you want to stay protected against health emergencies, then a health insurance plan is the ideal choice.

• Understand Policy Terms: Different insurance policies have different sets of terms and conditions. So, read and understand your policy thoroughly, and in case of any discrepancy, immediately reach out to your insurance provider.

• Claim Settlement Ratio: Always choose an insurance company that has a high claim settlement ratio. This is because when you do so the chances of your claim being settled get higher.

• Compare the Different Plans: You should also compare the different insurance plans available. This will help you choose the right plan based on the coverage and budget.

How to Buy an Insurance Policy with InsuranceDekho?

Listed below are the steps in which you can buy an insurance policy with InsuranceDekho:

• Go to the InsuranceDekho website
• Click on the type of health insurance plan you wish to buy
• Enter details such as age, mobile numbers, income, and more
• Based on the details provided, you will be redirected to the quotes page
• Select a desired insurance plan and proceed with premium payment
• Once the premium payment is completed, you will receive policy details on your registered email id

Take Away

In a nutshell, it can be said that insurance plans are available with varied features and benefits. So, based on your requirements, choose the right insurance plan and enjoy financial protection in case of need.

FAQs

• What are the different types of insurance plans?

The different types of insurance plans are health insurance, car insurance, bike insurance, term insurance, life insurance, and business insurance.

• What are the factors I need to consider while choosing the insurance coverage?

You need to consider different factors such as age, premium amount, financial dependants, and others while determining the insurance coverage.

• Can I renew my insurance plan?

Yes, you can renew your insurance plan. However, you need to check the renewal terms and conditions with your insurer.