Buying insurance now can save you upto 40% on premiums – Here is how
According to news reports, insurance premiums including health and term life insurance premiums could witness an increase by as much as 20% by October, 2020. The primary reason for this, according to reports, is the guidelines issued by India’s insurance regulator the IRDAI (Insurance Regulatory and Development Authority of India) to insurance providers asking them to standardize their products.
In April this year, several insurance plans witness a similar increase in insurance premiums. That time, the premium on health insurance and other products witnessed a similar increase by up to 20 percent.
In this blog, Secure Cover explains the reason behind the likely rise in insurance premium in coming days and suggests ways to avoid paying higher premium.
Why insurance premiums are set to rise?
The insurance premiums that one has to pay for a product depends mainly by 5 factors – the nature of the insurance product, the insured sum, the coverage, the condition of the object/person being insured (health, vehicle condition etc.) and the age of the object/person. Till recently, insurance products offered by insurance companies suffered from tyranny of ambiguity which not only made it difficult for products to be presented in a standardized form for also prevented objective comparison of two similar plans.
For example, if there are two similar looking health insurance plans say, Plan A & Plan B, offering cashless facility; Plan A might have an inbuilt sub-limit for a particular benefit such as hospital room rent whereas Plan B might not have it. Therefore, in such a scenario, the buyer of Plan A will have to pay the amount above sub-limit from his or her own pocket whereas the buyer of Plan B won’t have to.
Such ambiguities led to disputes and customer grievances. Hence, IRDA asked insurance providers to make relevant changes in their plans and make insurance terms and conditions easier to understand for the customers.
Therefore, in the light of such order issued a year back by IRDA, insurance policies are expected to become more beneficial for customers. As a consequence, the premiums are likely to witness an increase in coming months.
How to avoid paying higher premium?
As per industry sources, the cost of insurance products such as term life insurance plans which provide financial support in the event of untimely death might register an increase by up to 40% in coming months. It is therefore advised that customers purchase or renew their plans before October 2020 so that they do not have to pay higher premiums on the insurance products.
How Secure Cover can help?
Secure Cover has been offering insurance products at best prices to customers for the last 10 years. It deals with insurance plans for all occasions including
1. Health Insurance/Mediclaim
2. Motor Insurance
3. Fire & Allied Perils Insurance
4. Life Insurance
5. Office Fire & Burglary Insurance
6. Electronic Equipment’s Insurance
7. Trip/Travel Insurance
8. Overseas Students Insurance
9. Employee Group Health Insurance etc.
In addition to that, Secure Cover also provides growth and savings plans such as
1. Pension Plans
2. Child Plans
3. Guaranteed Return Plans
4. Tax Saving Plans
5. ULIPS etc.
What makes Secure Cover one of the most trusted insurance service brands in India is the fact that it not only provides support and assistance during purchase such as documentation etc but also after sales support. We have a team of dedicated professionals who guide customers so as to help them choose plans that best fit their needs and budget. We also have CAEs (Claims Assistance Executives) who are also trained to provide assistance to customers during Insurance Claims process.
To know more about our Plan offerings and assistance services, contact Secure Cover at +91-9315720732 or email us at firstname.lastname@example.org
Let’s Wrap Up
With IRDA playing a proactive role in standardization of insurance products, the ultimate beneficiary would be the consumers. However, the changes brought about by insurance companies in the light of IRDA’s order are likely to increase the price of insurance premium across different categories of products. Therefore, insurance buyers are advised to purchase plans from Secure Cover as soon as possible and save between 20-40% on insurance premiums.
Disclaimer: The content of this blog is based on personal research of the writer. Reader’s discretion is advised. Neither Secure Cover nor the writer will be held responsible for any wrongful interpretation of the content of this blog.