How to get more insurance coverage and pay less: Tips for Term Life, Health and Motor Insurance

Insurance has become important for everyone. Life uncertainties make it mandatory to have adequate cover for Life, Health and Motor vehicles. Policyholders have to pay a high premium for optimum benefit. However, there are many ways in which policyholders can ensure better coverage for themselves while paying less at the same time. Here’s a look at such possibilities in Health, Term Life and Vehicle insurance.

Term Life Insurance

Term Life insurance provides coverage at a fixed rate of payments for a fixed period of time or term. 

According to Rohit Sadhu, Co-Founder and COO of Ensuredit, an AI-based insurance platform, the cost of term life insurance can be reduced by taking cover for limited-term instead of taking life-long cover or up to 80-year term. 

“The rationale behind the term plan is that it should cover the liability of the person i.e home loan or any other loan and once the same is over, the asset itself will take care of any sudden unfortunate event,” Sadhu said.

 “Similarly, by taking a limited premium paying option or by paying a one-time premium in a term policy, the premium can be reduced by up to 50 per cent,” he added. 

Health Insurance

Health insurance top-ups can be purchased by those who have medical insurance from their respective employers. This can help get very comprehensive coverage by paying very little. 

Experts say that the critical illness policy can provide higher payout benefits at a relatively lower cost due to restricted cover for a few critical illnesses instead of general coverage. 

“By opting for higher deductibles in health and property insurance, Customers can have a reduction in the cost. A deductible is an amount, the customer is able to take care of himself which is typically 5-10 % of the claim amount. But due to such deductibles, customers may get a 10-20 % saving in premium,” said Sadhu. 

“By opting for a 2-3 year health insurance policy instead of a yearly policy, customers can get a 20-30 % reduction in overall premium plus the additional benefit of a higher bonus sum insured,” he added.

Motor insurance

In motor insurance, customers can get discounts by opting for higher deductibles. Normal deductibles in a private car are Rs. 2000 and if a customer is ready for deductibles of Rs. 10000 per event, he will get a 10-20% reduction in premium.

Group Health Insurance

Group health insurance products can be lower priced in a lot of situations. Products such as personal accidents or critical illness cover come at a very low cost. One of the key ways is to be part of a group or association that offers group insurance products. These products can be specified in health and life insurance. 

“A lot of the life and health insurance products that consumers may be eligible for by virtue of being part of that group/association can give access to much lower-priced products. Similarly, membership in key automotive associations can also help get access to discounts,” said Sadhu.