Better alternatives for Optional covers in insurance policies

1)     Term Life Insurance - Return of Premium policies:

The return received as survival benefit is lesser when compared to the return under FD for same term for the extra premium paid under this policy.

2)     PA cover 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 benefit is covered but not disability benefits.

b)     you can claim loyalty discount of 5 to 10% in premium for buying any other policy with same insurer.

This way your PA cover gets cheaper than buying it as a rider in any policy.

3)     Wordwide cover rider in Health Policies:

The worldwide cover as mentioned in health policies mostly cover only emergency hospitalization. If you get to know there is some better treatment available abroad and you wish to go for, that cannot be claimed under this policy even with worldwide cover.

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 travelling and hence at very low price.

4)     Riders for enhancing 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 much restrictions as other sum insured enhancing benefits.

Like Restoration is done only when 95% of 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.