Maybe you’re planning for the future… or trying to protect your family from unexpected emergencies. So, you think — “Let me buy an insurance policy. That’s what responsible people do, right?”
But here’s the harsh reality no one tells you: If you don’t understand a few key things before buying a policy, you could end up losing more than just money — you could lose peace of mind.
Let’s break down the 5 most important things you must know before you buy any insurance plan — especially health or life insurance.
Insurance Is Not an Investment — It’s Protection
A lot of people buy insurance like it’s a savings scheme.
But here’s the truth: Insurance is not meant to make you rich. It’s meant to stop you from going broke.
Am I buying this for actual coverage or just returns?
Will this policy protect my family or just give me a small bonus after 20 years?
Term insurance gives you maximum protection at the lowest premium. It won’t give maturity returns — but it’ll give your family the entire cover amount if something happens to you.
On the other hand, endowment or money-back plans offer returns but with much less cover, and often much higher premiums.
You need to be clear on your goal — protection or returns.
Health Insurance Isn’t Optional Anymore
Medical bills are no joke anymore.
From doctor fees to lab tests, hospital stays to emergency surgeries — a single illness can wipe out your entire savings in days.
If you don’t have health insurance, you’re just one accident away from financial ruin.
So don’t wait for the “right age.”
Buy a health insurance plan as early as you can. Why?
- Younger buyers get lower premiums
- You can enjoy longer coverage periods
- And you avoid waiting periods before cover begins
Read the Fine Print – Or You’ll Regret It Later
You know what’s worse than falling sick? Falling sick, paying the premium for years, and then getting your claim rejected.
This happens more than you think — and it’s usually because people don’t read the policy carefully.
- Here’s what you must check before buying:
- What diseases are excluded from the cover?
- What’s the waiting period for major illnesses?
- Does the policy cover day-care procedures, OPD, or mental health?
- Are there room rent caps or sub-limits on surgeries?
- If it sounds confusing, ask questions. Don’t blindly trust what the agent says.
- Don’t Just Buy a Basic Policy – Consider Top-Ups Too
- Think your existing health plan is enough?
Think again.
- A single major surgery or a week-long ICU stay can cost ₹10–15 lakhs.
- That’s why many smart buyers go for a Super Top-Up Plan — an add-on that increases your coverage after a certain amount.
Example:
You have base coverage of ₹5 lakhs.
Your Super Top-Up kicks in after ₹5L is exhausted — and covers the rest, often up to ₹20–25L, at a very low premium.
More coverage. Less cost. Peace of mind.
Buying Online Saves Money — And Headaches
- Still buying insurance through a friend’s uncle who works in an agency?
- It’s time to move on.
- Buying online is cheaper, faster, and gives you total control.
- No middlemen or commissions
- Instant policy comparison
- Transparent pricing
- Easy document access
FAQs – Still Confused? You’re Not Alone
Q1: Is term insurance better than endowment?
Yes, if your priority is life cover. Term insurance gives higher coverage at lower cost. Endowment is more about savings, not protection.
Q2: Can I buy health insurance if I already have an employer plan?
Yes, and you should. Employer plans often have low limits or end when you change jobs.
Q3: What’s a deductible in a top-up plan?
It’s the amount you pay first. The top-up starts after that. Example: If deductible is ₹5L, the plan covers expenses above ₹5L.
Q4: What’s the right age to buy health insurance?
The earlier, the better. Premiums go up with age and health risks. 25–30 is ideal.
Q5: Can I trust online insurance platforms?
Yes, if it’s an IRDAI-approved platform. Stick to known names like Policybazaar, ACKO, etc.
