Talking about Insurance

The main purpose of insurance is to provide money to your dependents in the event of your death. Also, insurance and in investment should be treated separately. You can seek for a pure term cover for insurance purpose and then opt for a mutual fund scheme for capital building or retirement. You can get rid of policies which are recently brought by you and receive back whatever you can, by surrendering them accordingly. On the other hand, if the policies are quite old and have only about five to 10 years for maturity, you should continue to pay the premium. Once you know exactly how much insurance you need for your self, you must then be aware of the various types of insurance that is available. In the past, endowment policy and money back policies were considered as the top most priority. Today, however the market is flooded by a wide range of policies with a variety of features.

Money back plans are one of the expensive insurance products. But customers will not mind to pay little bit of more premium. But the real problem lies with the people who remain under insured because of the higher cost. It would be advisable to buy insurance cover with a term plan and then one should go for insurance-cum investment products. Any person who needs an insurance coverage I required to bill in a proposal form. The insurance company will then decide whether or not to accept the proposal and determines the premium payable. But if there is a discrepancy between the proposal form and the policy document, the concerned insurance company will then have to pay the price for this confusion. Life Insurance policies can also be traded and assigned freely. A lLife Insurance policy can be considered as movable property and it can be traded in by the policy holder. Transfer or assignment is a method by which a life insurance policy holder can transfer his interest to another person or institution. It can be used as a security for a house loan or can be used as a security for a house loan or can be also used as emerging cash.

Few years back, health insurance for senior citizens was never heard of. But today, there are various insurance companies who are ready to provide insurance for senior citizens. Today, many insurance companies are offering senior citizens health insurance products. The main aim of the health insurance plan would be to provide cashless benefits or reimbursement of hospitalization expenses related to illness or accidents. Health insurance companies provide critical care and family health insurance schemes. Before you buy health insurance, you must check for coverage of pre-existing illness and any medical conditions arising from them. Some companies will cover a pre-existing illness only from second year. Also most plans do not cover treatment for mental illness such as dementia or alzheimer’s disease.

One must note that the premium for a particular category health policy is higher than the regular med claim premium for lower age groups. This is obvious, since it is always known that the premium for any life or health insurance policy increases. For all policies, the lower your age at the time of buying the policy, the lower is the premium.