1. Type of Insurance
Know the type of insurance you need (health, life, auto, home, travel, etc.).
2. Coverage Limits
Understand the maximum amount the insurance company will pay for a claim.
3. Premiums
Know the cost of the policy (monthly, quarterly, or yearly).
4. Deductibles
The amount you pay before the insurance kicks in.
5. Co-payments
For health insurance, this is the fixed amount you pay per service or visit.
6. Coinsurance
Your share of the costs after you’ve met your deductible, usually expressed as a percentage.
7. Exclusions
Understand what the policy does not cover.
8. In-network vs Out-of-network Providers
For health insurance, it’s important to know if your doctor is part of the network.
9. Waiting Periods
Some policies have waiting periods before coverage begins (e.g., for pre-existing conditions).
10. Policy Term
Know the duration of coverage (annual, renewable, or lifetime).
11. Renewability
Check if the policy is guaranteed renewable or subject to termination.
12. Claim Process
Know how to file a claim and what documentation is required.
13. Grace Period
The period allowed for premium payments after the due date.
14. Riders
Additional options or add-ons to customize coverage.
15. Pre-existing Conditions
Some policies exclude or limit coverage for pre-existing conditions.
16. No-Claim Bonus
Discounts or rewards for not making a claim.
17. Policy Lapse Conditions
What happens if you miss a payment and the policy lapses.
18. Surrender Value
The cash amount you receive if you cancel a life insurance policy early.
19. Grace Period for Claims
Timeframe in which you must file a claim after an incident.
20. Policy Limits for Different Types of Coverage
Breakdown of limits for different components of coverage (e.g., liability, property damage).
21. Add-ons for Coverage Enhancement
Check for optional add-ons like accidental coverage, maternity benefits, etc.
22. State or Country-specific Regulations
Insurance laws vary by region, so check the rules for where you live.
23. Insurer’s Reputation
Research the insurance company’s financial stability and customer service record.
24. Third-party Liability Coverage
Important for auto and home insurance; covers damages to others.
25. Cashless Claims
Especially for health insurance, check if the insurer offers cashless claims at hospitals.
26. Sub-limits
Certain conditions may have sub-limits, such as room rent caps in health insurance.
27. Coverage for Dependents
Ensure the policy covers your spouse, children, or parents if required.
28. Geographical Coverage
For health and travel insurance, know whether it covers you abroad or just in your home country.
29. Inflation Protection
Some policies allow you to adjust coverage as inflation increases costs over time.
30. Claim Settlement Ratio
The percentage of claims an insurer settles; higher is better.
31. Policy Cancellation Terms
Know how to cancel the policy and any fees involved.
32. Term vs Permanent Life Insurance
Understand the difference between term (temporary) and permanent (whole life or universal) life insurance.
33. Group vs Individual Plans
Group plans (offered by employers) may be cheaper but offer less flexibility than individual plans.
34. Conversion Options
For life insurance, some term policies can be converted to whole life later.
35. Tax Benefits
Many insurance policies offer tax deductions or exemptions.
36. Family Floater Policies
For health insurance, a family floater covers the entire family under one sum assured.
37. Underwriting Requirements
Some policies require medical exams or detailed information before approval.
38. Riders for Critical Illness
Add-ons that provide additional coverage for specific diseases like cancer or heart disease.
39. Accidental Death and Disability Coverage
Additional protection in case of death or disability due to accidents.
40. Portability
The ability to switch insurers without losing benefits or coverage.
41. Return of Premium
Some life insurance policies return your premium if you outlive the policy.
42. Emergency Coverage
Especially important in health or travel insurance for emergency evacuations and treatments.
43. Fraud Protection
Be aware of any fraud prevention mechanisms the insurance company has in place.
44. Bundled Policies
Some companies offer discounts if you bundle multiple types of insurance (e.g., home and auto).
45. Discounts for Safe Behavior
For auto insurance, you may get discounts for being a safe driver or installing safety devices.
46. Renewal Discounts
Some policies offer lower premiums upon renewal if no claims are made.
47. Policy Comparison Tools
Use online comparison tools to evaluate policies from different providers.
48. Agent vs Direct Purchase
Buying through an agent can provide guidance, but direct purchases often come with lower costs.
49. Claim Time Limits
Be aware of the deadline by which you need to file a claim after an incident.
50. Legal Dispute Options
Understand your legal options if the insurance company denies a claim or underpays.
These factors will help you make an informed decision when purchasing any insurance plan.