Life Insurance is a contract between an insurance policyholder and a life insurance company, where the insurer promises to pay a designated beneficiary a sum of money (sum assured) in exchange for a premium, upon the death of an insured person or maturity of the policy (depending on the policy contract). Other events such as terminal illness or critical illness can also trigger payment.
Life Insurance is useful to provide your family with financial security in case circumstance throws you into a situation where you cannot earn or in case of early demise. It helps keep your family financially protected even in your absence. Life insurance policies also help you save on a regular basis which provides you with financial stability.
Life Insurance is not necessary but is a smart decision to make, especially if you have a dependent spouse and children. It offers your family financial support even after your death. In addition to this, it offers a number of advantages and provides a lot of flexibility in your investment. For example, you can add a critical illness benefit to cover the cost of expenses for surgeries and operations; you can withdraw a part of your maturity benefit in case of an emergency.
All of us should buy health insurance for all members of our family, according to our needs. Buying health insurance protects us from the sudden, unexpected costs of hospitalization (or other covered health events, like critical illnesses) which would otherwise make a major dent in household savings or even lead to indebtedness. Each of us is exposed to various health hazards and a medical emergency can strike anyone of us without any prior warning. Healthcare is increasingly expensive, with technological advances, new procedures and more effective medicines that have also driven up the costs of healthcare. While these high treatment expenses may be beyond the reach of many, taking the security of health insurance is much more affordable.
Insurance companies have tie-up arrangements with several hospitals all over the country as part of their network. Under a health insurance policy offering a cashless facility, a policyholder can take treatment in any of the network hospitals without having to pay the hospital bills as the payment is made to the hospital directly by the Third-Party Administrator, on behalf of the insurance company. However, expenses beyond the limits or sub-limits allowed by the insurance policy or expenses not covered under the policy have to be settled by you directly with the hospital. A cashless facility, however, is not available if you take treatment in a hospital that is not in the network.
Yes. When you get a new policy, generally, there will be 30 days waiting period starting from the policy inception date, during which period any hospitalization charges will not be payable by the insurance companies. However, this is not applicable to any emergency hospitalization occurring due to an accident. This waiting period will not be applicable for subsequent policies under renewal.
Vehicle insurance gives protection to the vehicle owner against damages to his/her vehicle and pays for any Third-Party Liability determined as per law against the owner of the vehicle. Third Party Insurance is a statutory requirement. The owner of the vehicle is legally liable for any injury or damage to third-party life or property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Vehicle Vehicles Act, of 1988.