Insurance That You Want To Avoid To Reduce Your Costs
It’s a must buy decent insurance plans to protect yourself. All of us, however, have to live with the problem of limited capital. Here are a few insurance plans that you might stop.
Insurance is a safe way to buy peace of mind, they claim. Often resource people will go an extra mile and pay insurance providers to get protection for things they find to be precious. Therefore, people should buy insurance for parts of their bodies, livestock, ant farms and what not.
The problem that always occurs for the average man, however, is whether you buy the right insurance policy and don’t spend money on needless insurance cover.
Most frequently, people buy needless insurance premiums when combined with other products — electronic devices, home loans, vehicles, or some other insurance policy — as an add-on without knowing that they can be costly to purchase them.
Let’s look at some of the insurance coverages without which you can do.
Credit security cover with home loan: You will inevitably be tempted to go with the loan at the time of disbursement of home loan with a bunch of insurance items. Credit protection coverage is among the most marketed and most purchased insurance policies.
These are single-premium insurance plans that cover the cost of the loan in case of an untimely death by the borrower. The amount of cover may decrease as the remaining sum continues to decrease with each EMI, or may remain the same during the policy term. The premium is applied to the value of the loan and hence you must pay interest on the premium at the cost of the home loan.
Instead of taking a credit security plan, a term life policy with a broad cover can be opted for instead. A investor may already have a term insurance contract, and may have opted for a credit security program.
Cash benefit package for hospitals: These plans include a fixed amount of Rs. 500-50,000 per day of hospitalization to cover any extra costs such as lodging and food. Such plans are often bundled with health insurance policies as additions or add-ons, but they can be purchased individually even if an person does not have a health policy.
This insurance policy can not suit a critically ill family. Since there are high chances of long hospitalization, it could prove unproductive to purchase this policy at an additional cost of Rs. 5,000-10,000 a year.
Electrical and electrical equipment protection: Home insurance policy protects house construction and personal belongings such as jewelry, home appliances, etc. against fire damage and burglary damage. Unless you do have a home policy, do not apply for the computer equipment and other devices insurance plan.
Due to every unexpected occurrence these insurance policies compensate substantial harm to the devices. However, these insurance policies are practically useless considering the amount of exclusions and conditions to receive the benefits. In any case, most devices have one-two-year warranty and that alone is enough protection.
Buying a comprehensive policy for an old vehicle: There are two aspects of a auto insurance – the mandatory third-party insurance and the optional part that includes own harm protection and cover for personal accident. Add-on covers such as zero deductibles, roadside assistance and garage cash, medical costs, hospital cash etc can be tailored to the available portion.
When you have an old car, which you intend to repair anyway, you can do away with a lot of add-ons and opt for a straightforward cover. You’d be saving a lot of money by doing so. You would have a robust insurance plan for medical emergencies, too.
Buying official tours travel insurance: Travel insurance covers overseas travel and medical emergencies. When you are on an overseas trip to perform official work, your employer will typically take care of any medical or travel-related emergencies. Do not go through the trouble of purchasing a travel insurance policy yourself in these situations. That way you save your money, no matter how small it may be.
You can make the correct decision with a little due diligence, and purchase the right insurance policy.