While availing an insurance policy, be it life insurance, health insurance, home insurance or any other insurance, it is very important to go through the fine print of the insurance policy. The fine print includes several terms and conditions of the policy. Many people simply go through the key points written in a brochure or just listen to the insurance agent while availing a policy.
However, it’s advisable to read the fine print before signing on the dotted line. In this blog, we will discuss everything you need to know on fine print and how to study the fine print before availing a policy.
The fine print in the insurance policy is written in very small handwriting and is less noticeable. The fine print consists of terms and conditions which have a great impact on the policy. Avoiding the fine print in the proposal form may put you in serious problems.
1. In the case of a health insurance plans, you must go through the various clauses like pre and post hospitalization expenses, cashless hospitalization, waiting period, pre-existing coverage, ambulance charges and much more.
2. In the case of life insurance plans, you must go through the exclusions. Exclusions are certain things which are not covered by the plan. For instance: Insurers will not cover the risks arising out of adventure sports. There are many situations/cases where life insurance cannot come to your aid. So, it is advisable to go through the fine print carefully.
3. In the case of car insurance, most of the insurers do not settle the claim, if someone other than the family members drives the car.
4. You must go through the fine print even while availing home insurance. Different risks are covered by different policies. For instance: Some insurers cover natural disasters like an earthquake and some don't.
As stated earlier, it is really important to read the entire document, including the fine print, before availing an insurance policy. By reading the fine print, you get to understand everything on the policy including the limitations of the policy, which are not disclosed by your insurance agent. Usually, insurance agents hide the limitations of the policy. So, it is advisable not to rely only on what your insurance agent says. You must read the entire proposal form before signing it.
This is an example why reading fine print is important:
A person had availed a health insurance plan. After 5 months of availing the policy, he had undergone cataract surgery. His claim was not settled by the insurance company who stated that cataract was covered from the second year of the policy, and not the first year. This was mentioned in the insurance contract, but he had not read it. So, it is very important to go through the fine print.