Some important facts related to Insurance. June 28 2021 is being observed as a National Insurance Day and you must know some useful information about the insurances. The importance of insurance has increased manifolds after the first wave of coronavirus hit the country.
The domestic insurance companies have received claims worth Rs 25,000 cr related to Covid-19. In many countries, the Covid-19 treatment is not covered under the insurance plans. However, all Indian companies have included Covid-19 as part of the insurance policies.
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Many people have faced problems related to Covid-19 claim settlement.
Some important facts about insurances:
- Personal accident cover of Rs 1 lakh at an annual premium of just Rs 45.
- In case of an untimely demise, some financial aid to the family of the insures; also education and other important expense are taken care of
- Life insurance policies may not have high returns, but this investment should be seen as an important insurance policy.
When should you get yourself insured?
You should buy an insurance policy as soon as you start earning. Term plan is a good option for life insurance at reasonable premium. ULIPS will give you higher returns for a longer period policy. It is also advisable to buy a pure life term plan.
The insurance policy holder should give the correct details while buying any insurance policy. Any wrong information could create problems in claim settlements.
Your claims can be rejected on hiding ailments while buying a policy.
Term plan is the cheapest insurance policy as it does not have an investment component to it.
Only those companies should be preferred for buying policies which have a good claim settlement record.
What is the right coverage amount for buying insurance?
The insurance amount should be at least 16-22 times the annual income of an individual.
What should be the period of life insurance?
Till the time you have dependents.
Importance of health insurance
The hospital and treatment expenses can skyrocket which is why it is advisable to have a health insurance plan.
If you are young and do not have any physical problems, then you are likely to get health insurance at a nominal premium.
As you grow old, the chances of getting ailments increase and the price of the premiums therefore increase.
Your health insurance policy can also help you save some income tax. You can avail tax benefits on the premium amount up to Rs 25,000 under Section 80D of the income tax act.