Insurance Companies Don't Want You to Know About This!
Discover the insurance Must-Have Add-Ons!
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Insurance Secrets
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🤐 Insurance Secrets
I understand that insurance can be a daunting topic, but it doesn't have to be! That's why I've put together this guide to help you navigate the world of insurance with ease and confidence. Whether you're new to insurance or a seasoned pro, read on to learn about the key things you should keep in mind when selecting the right coverage for you and your family.
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🪫 I don’t need Insurance
Insurance provides protection and peace of mind in the event of unexpected events such as accidents, illnesses, or natural disasters. Without insurance, you could be faced with financial ruin due to medical bills, property damage, or liability claims. Having the right insurance coverage can help you avoid such financial setbacks and ensure that you and your loved ones are protected. Plus, with a wide range of insurance options available, there's a policy that can fit your unique needs and budget.
When it comes to insurance, it's not just about the policy itself, but the incredible add-ons called riders that can really make a difference. The basic insurance policy will only cover the essential things, but with the right riders, you can tailor your coverage to suit your unique needs and provide additional protection for those unexpected situations. Let's explore all the amazing options available to you and make sure you're fully protected!
🏥 Medical Insurance
😷 By default, masks, gloves, bandages, and cotton are not covered under most health insurance plans. Add on a separate rider to ensure that you have the coverage you need. This is especially important in situations like COVID, where these items can add up to 15-20% of your medical bill if not covered. So, make sure you're fully protected and covered for any unexpected health expenses.
🤒 Have you ever thought about getting some extra peace of mind by getting yourself admitted to the hospital, even when you're feeling perfectly fine? Some insurance companies may not cover this type of precautionary measure as it is not considered a treatment. You may have to pay out of your own pocket.
📊 Reasonable and Customary (R&C) Clause: This clause helps determine how much of your medical expenses your insurance company will cover. They'll take into account the nature and type of your medical treatment, as well as what similar hospitals in your area would typically charge for that same treatment.
Let's say you had to visit a hospital in Hyderabad for a medical procedure that costs Rs. 2,00,000. Your insurance policy includes the R&C Clause, which means that your insurance company will only reimburse a portion of that cost based on what similar hospitals in Hyderabad would typically charge for that same procedure.So, let's say that the R&C rate for that procedure in Hyderabad is Rs. 1,40,000. In this case, your insurance company would cover up to Rs. 1,40,000 of the cost, and you would be responsible for paying the remaining Rs. 60,000 out of pocket.
It's important to note that the R&C rate can vary depending on the specific procedure and the location. That's why it's always a good idea to check with your insurance provider to see how the R&C Clause will affect your coverage for a particular medical treatment.
Try to negotiate the price with the hospital and talk with your insurance company (and also beware that some hospitals might hike the prices when they know that their patients have insurance)
🚙 Car Insurance
⚙️ Engine Protection Rider: Engine is the heart of your vehicle. It's undoubtedly the most essential and costly component, and unfortunately, most basic insurance policies (base policy covers damages) don't cover it. In the event of an accident, the base policy only covers damages caused by the collision, leaving the engine vulnerable to several other risks. For instance, if your engine gets damaged due to rainwater or a hydrostatic lock, you'll have to bear the expenses out of your pocket. And, let's not forget gearbox damages, which can be equally costly to repair.
With an Engine Protection Rider, you can now enjoy comprehensive coverage for your vehicle's engine. This rider will safeguard your engine against all kinds of damages, be it due to waterlogging, hydrostatic locks, or gearbox issues.📉 Zero Depreciation Cover: A comprehensive car insurance policy that gives you complete peace of mind. This add-on ensures that you won't have to worry about the depreciation of your car's parts, because your insurer will cover the full assessed amount as per your policy document. But there’s a little catch, can only be used a specified number of times during the policy period.
Let's say you have a car (4 years old) worth Rs 15,00,000, and you have a comprehensive car insurance policy with zero depreciation add-on cover. Unfortunately, you get into an accident that damages the front bumper of your car, which will cost Rs 1,20,000 to repair.If you have the zero depreciation add-on cover, your insurer will cover the full cost of the repair without any deduction for depreciation. So, you'll get a claim payout of Rs 1,20,000 and won't have to pay anything out of your pocket.
However, if you don't have the zero depreciation add-on cover, your insurer will deduct the depreciation amount from the claim payout, which can be up to 50% of the cost of the damaged parts. So, in this case, you'll only receive Rs 78,000 (35% off of Rs 1,20,000 as it’s a 4-year-old car) as a claim payout, and you'll have to pay the remaining Rs 42,000 from your own pocket.
As you can see, having the zero depreciation add-on cover can make a significant difference in the amount of money you have to pay out of your own pocket in case of an accident.🔑 Key Replacement Add-on: Losing your car keys can be a real headache, not to mention lamba bill ajayega. By opting for key replacement cover in your car insurance, you can save yourself from a potentially huge bill in the event that you misplace your keys. This kind of coverage typically only increases your premium by 4-5%. That's a small price to pay for peace of mind and protection from unexpected expenses.
🛑 Roadside Assistance cover: It can be a lifesaver when you're out on the road and run into trouble. Imagine getting a flat tyre or experiencing a minor mishap while driving, it can be a real hassle! But with a 24x7 Roadside Assistance cover, you can get the help you need without even having to make a claim. It's a small add-on that can make a huge difference when you need it most.
A couple of great credit cards offer roadside assistance as well. With great credit scores come great credit cards 😉. The easiest way to build your credit score is to apply for a credit card.
🛟 Life Insurance
💍 MWP (Married Women's Property) addendum: By choosing an insurance policy with an MWP addendum, you can have peace of mind knowing that your loved ones will receive the full benefits of your policy, without any complications or delays. It's a smart move that can make a world of difference for your family's financial security.
If a married man buys a policy with an MWP addendum, the benefits from the MWP act in life insurance will be the sole property of his beneficiaries, and won't be considered a part of his estate. The proceeds can't be used to pay off any outstanding debts or liabilities.
Have a great week.
GB
Fun Finds
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Churchyard by Aurora: Step into the hauntingly beautiful world and let your soul be entranced by the ethereal melodies.Podcast
How to better understand the past by The Daily Stoic
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