This Dussehra, Avoid Making Financial Mistakes and Invest Wisely

Since Dussehra marks the victory of good over evil and signifies the destruction of demonic forces for a peaceful existence, it’s the perfect time to get rid of your fears. Leave behind your anxiety and life’s uncertainty by purchasing insurance coverage that backs you up in your worst times. Be prudent when purchasing insurance and opt for a policy that provides adequate coverage to meet your needs. A comprehensive insurance plan can be the protective shield against all evils, making life peaceful. Also, if you’re new to the concept of insurance, seek assistance and get clarity before investing in any insurance plan. Know that mistakes are common, but inadequate or unnecessary coverage can dig a hole in your pocket. So, spend your savings wisely. Be clear about your requirements and invest your time in research work. Feel free to connect with us at Policybazaar and avoid making the below-mentioned financial mistakes while purchasing an insurance policy. 

•    Don’t underestimate the importance of insurance

Consider insurance an asset that secures you and your loved ones in the face of difficulties. It provides financial assistance in case of emergencies and promotes stress-free living. A reliable insurance policy provides compensation and benefits to act as your companion in times of need. 

However, a standard insurance policy doesn’t usually cover all damages. In the event of ill-health, travel emergency, natural calamity, etc., you could incur losses that could cost you a fortune if you don’t have a suitable insurance policy. So be wise while choosing your insurance cover and live life fearlessly.  

•    Don’t choose a one-size-fits-all plan

Let’s put it this way, most brands may tempt you to invest in luxurious products and services. If you’re a smart shopper, you’ll only be attracted to the product or service that satiates your desire. 

Apply the same rule while purchasing insurance. Be a selective shopper and opt for a plan that offers a high deductible and a low premium. This way, you’ll save some bucks and pay for what you actually need.

•    Don’t rely on corporate insurance

Although it’s safe to have corporate insurance cover, rising health emergencies and sky-rocketing medical bills make additional protection a necessity. 

This additional protection can be an all-inclusive medical insurance plan that goes beyond the basic benefits offered by a corporate insurance policy. 

You need such an insurance policy as the one offered by your employer is not permanent in nature. Its validity depends on your employment status, which means that it’ll end if you’re no longer employed with the firm. 

What’s more, corporate insurance may or may not secure your family. It provides a low sum insured, doesn’t include pre-existing diseases, and leaves little or no scope for negotiations and customisations in the plan. So, opt for an independent insurance policy. 

•    Don’t be underinsured

Sometimes, basic insurance isn’t enough to keep you secure. Be better prepared for medical emergencies, accidents, and other mishaps by buying a comprehensive insurance policy that provides coverage when necessary. Such a policy may cost you more initially, but will surely be profitable in the long run.

Policybazaar offers a 1 crore term insurance policy which provides a sum assured of Rs. 1 crore. This amount is paid to the family/nominee of the policyholder in case of the policyholder’s demise. pocket-friendly premium rates and financial security for loved ones makes this insurance policy a must-have.

•    Don’t forget to renew on time

Policyholders must renew their insurance policy on time for continued protection from financial liability in times of need. Timely renewal empowers you to avail the existing benefits of the policy and get timely policy upgrades, if needed.

•    Don’t go too basic

People often forget to consider add-ons when buying an insurance policy. Don’t make that mistake. If you’re not opting for a comprehensive plan, then look out for necessary add-ons, especially when buying health insurance. 

If you’re worried about the additional premium you’ll have to pay, trust us, it’ll be worth it. So, look at the add-on covers such as Maternity cover, Critical Illness cover, OPD Cover, etc. that you can include in your policy and secure yourself and your loved ones forever.

•    Don’t procrastinate 

Make insurance a life-long commitment and be quick to buy a suitable insurance policy. Upgrade your policy from time to time and don’t take this investment lightly.  

However, with so many insurance policies available to customers today, there’s a possibility that you may waste your money on purchasing a policy that either offers too much or too little. Such a policy may either not fulfil your requirements at all or may provide more than necessary. 

So, do your research well, connect with us at Policybazaar, discuss your concerns, and then buy an insurance cover that best matches your requirements. 

•    Don’t put all your eggs (money) in just FDs

While a fixed deposit helps you save your hard-earned money, an insurance policy provides financial assistance in times of need. An insurance policy provides additional benefits, and leaves enough scope for necessary upgrades and amendments. 

While FDs are apt for short-term investments, some insurance policies, such as life insurance are perfect if you’re looking for long-term investments. 

Hence, instead of investing all your money in fixed deposits, purchase an insurance plan that’s your agony aunt, or may we say, your companion in troubled times. 

To begin with, you can opt for a suitable life or health insurance plan. Be wise and understand that medical emergencies won’t wait till you’re old.    

•    Don’t travel uninsured

A traveller encounters all kinds of situations while traveling. Some travel experiences are pleasant, while others may not go as planned. You could misplace your documents, may need stay extension or cashless treatment facility due to medical emergencies, etc. A travel insurance policy helps you deal with such unforeseen situations. 

It provides coverage in case you’ve lost your passport, flight tickets, other crucial documents, or even your baggage. In the case of accidents and medical emergencies, a travel insurance policy protects you from financial implications and makes hospitalisation a cashless process.

In fact, such a policy helps if you want to cut your trip short and ensures you’re back home on time. 
 
•    Don’t forget about your home sweet home

The cost of replacing or rebuilding a home has nothing to do with its market value. Rather, it’s dependent on the cost of labour, materials, and other essentials one needs while rebuilding their dream house. 

Let’s say it’s wise to ignore the real estate prices or market value while buying insurance for your home. Purchase insurance that covers the cost of rebuilding your home instead of relying on fluctuating real estate prices. This way, you’re paying less and securing your home while buying a suitable home insurance policy.

So, get a suitable insurance plan while you’re young and avail additional benefits such as lower premiums and cumulative bonuses for the claim-free periods. 

Connect with us at Policybazaar and make smart insurance decisions today. This way, you’ll invest widely and reap maximum benefits.