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Better alternatives for optional coverage in insurance policies:
- Term Life Insurance-Return of Premium policies:
The return received as a survival benefit is less when compared to the return under FD for the same term for the extra premium paid under this policy.
- PA is covered as a rider in various policies:
It is good to buy a proper Personal Accident Policy for PA cover because
(a) The cover is comprehensive. As a rider, mostly death benefits are covered but not disability benefits.
b) You can claim a loyalty discount of 5 to 10% in premium for buying any other policy with the same insurer.
This way, your personal accidental cover is cheaper than buying it as a rider on any policy.
- Worldwide cover rider in Health Policies:
The worldwide coverage as mentioned in personal health insurance policies mostly covers only emergency hospitalization. If you get to know there is some better treatment available abroad and you wish to go for it, that cannot be claimed under this policy even with a worldwide cover.
A better idea is to consider this hospitalization outside India under your travel policies. This way, you would buy it only for the period you are traveling and hence at a very low price.
- Riders for enhancing the sum insured.
The riders like Restoration of Sum Insured, No claim Bonus Super, etc. can be ignored if we buy a proper super top-up cover for the same budget. This way the cover is much wider and with no many restrictions as other sum insured enhancing benefits.
Restoration is done only when 95% of the Sum insured is used and secondly on the second claim during the year. No Claim Bonus, as the name says is available only when you don’t claim.