5 Key Questions To Ask When Buying General Insurance
General insurance is an umbrella term used to refer to a range of insurance products apart from life insurance. Health insurance, motor insurance, and travel insurance are examples of common general insurance policies that people normally buy.
These days, there is growing awareness about the importance of having general insurance coverage. However, you really reap the benefits of your policy if you make a proper decision at the buying stage. In order to help you with that, we have listed out 5 key questions that you must ask your insurance provider/agent when buying a general insurance policy.
Q1. Can you explain to me the differences between plans?
The wide array of insurance products can leave most of us confused. This is why it is extremely important to ask your insurance agent or provider to help you understand the difference between their products. For instance, if you are buying health insurance, you might want to ask them whether individual plans or a family floater option would be the right pick for you and your loved ones. If it’s car insurance that you are buying, you could ask for a clear explanation of the differences between third-party insurance and comprehensive coverage. Knowing the details of each policy/plan will help you make the right choice.
Q2 Is there a free-look period?
Insurers understand that sometimes customers might change their mind. So, a lot of general insurance policies come with a free-look period. If you decide to cancel coverage during their period, you will get a refund of your premium subject to the insurer’s terms and conditions. Make sure that you know the duration of the free-look period before you buy coverage. This period is generally around 15 days.
Q3 What is your insurance company’s claim settlement ratio?
This is an extremely important question and one that you simply cannot miss out on. The claim settlement ratio shows you the percentage of claims the insurance company has paid during a given financial year. A higher percentage is definitely a huge plus point. The insurer’s claim settlement ratio should be available on their website; if it is not, do make sure to ask about it.
Q4 What are the policy exclusions?
Every insurance policy has its own limitations. These limitations get listed out as exclusions in the policy fine print. Now, most people tend to skip out on reading the fine print; however, this is a huge mistake. Even if you find the fine print language to be a bit complicated or filled with jargon, call up your insurer and ask them to help you understand the policy exclusions. This will save you from any confusion while making a claim.
Q5 Can you take me through the policy add-ons?
Add-ons help you customize your coverage so that it really suits your needs. All major forms of general insurance offer add-ons (which are also known as riders). For instance, health insurance can have add-ons such as daily hospital cash and critical illness cover. Car insurance has add-ons such as zero depreciation cover and engine protection cover. Ask your insurance agent to take you through a detailed list of all the add-ons available for a particular type of general insurance. Let them explain to you what extra coverage you get by opting in for each of these add-ons. This will help you take a proper decision when buying your coverage. After all, each add-on does increase the cost of your policy premium.
Do keep these questions in mind when buying general insurance coverage and we are sure that you will take all the right steps in securing yourself.