Insurance can cover life and general categories. In life, we could get a plain life term cover or a life cover with money back or investment returns. In the general category, we get cover for property, car, health, personal accident and natural disasters like fire, earthquake, etc.
There are various options available as far as insurance companies go. These insurance companies have grown in the past few years, expanding their portfolios with many multinational insurance companies letting their presence felt all over the world.
Before we seek life cover, we need to understand how we go about covering ourselves. If we take our family as a unit, we have to ascertain the breadwinner’s monthly income and multiply that figure by twenty years’ worth and we arrive at a ‘life cover’. Anything less than this defeats the purpose of provisions being made for the family in term of any death or accidental disability to the earning member of the family. The reason is that each of the dependents would have grown accustomed to the lifestyle that had been provided for them by the type of income that the insured would have been getting. This amount is the minimum cover required and there can be no compromise. The same formula applies for personal accident cover.
As far as health coverage is concerned, we need to procure a cashless hospital cover for both in-patient and outpatient facilities at any reputed hospital that is covered in the network list of the insurance provider. For middle to upper income group family, a cover of $50,000 is essential. In absence of a full hospital cover, a middle aged person needs to get at least a minimum of twenty critical illnesses covered.
As far as property goes, we need to evaluate the total worth of our house, the valuables in the house and take a quote for the lump sum value. Finally, for the car, we have to take a comprehensive cover and not just third part liability insurance after assessing the value of our car based on the year of its make with relative depreciation taken down.
When we are ready with the computations of all the different areas of cover that we require, we can start exploring for insurance companies to give us the best quotes and deals. There is no shortage of field representatives marketing insurance for their respective insurance companies. In fact, we may have received a call from any of them at least on once a week basis enquiring towards our insurance needs. We also have the privilege nowadays of going online and checking out competitive quotes for all categories of insurance cover that is mentioned here.
Before we get excited on the best quotes, we have to be totally aware that the particular insurance company is rated at least AA by CRISIL or rated by Standard & Poor’s or Moody’s to suggest sufficient soluble strength to pay the cover in terms of eventuality. Therefore, it is not necessary that the cheapest premium quote will win our nod. It is the security factor in assessing the liquidity strength of an insurance company which is the most important consideration in our final decision to opt for that quote. There are many fly by night and happy go lucky insurance providers out there today.