To understand the terms and conditions of insurance, you have to know a few things that are very important. Some vital points will be explained below to help you understand how and why they are important for you. 

1. The amount that you pay in your claim is known as the deductible. Higher the deductible, the more is the risk that you have to take on yourself. This result in less premium payment and deductible is a great idea to save more money. 

2. The conditions that are not a part of your insurance policy are known as exclusions. Always know about the exclusions in details while purchasing any policy. This is important so that you do not miss anything that is in small print and later be surprised during your claim. 

3. Policy types – Many insurance companies offer different levels and kinds of coverage and you may get a quote that you want to. In the best case scenario you might get a reasonably priced insurance policy where you need to know all the relevant details. Use these details to compare all the policies that you shortlist. 

4. Amount limits – All insurance policies have a limit on the payable amount that is included in many segments. This is an important step while making a policy claim and applies to all sorts of insurance policies from car insurance to health insurance. Always ask your insurance provider the coverage that is offered including all the limits that are important. You can also ask for all the policies that offer higher limits that might be of help for your investment. 

5. Special clauses – Many insurance policies have special clauses and waiting periods before the coverage can work. The clauses are different as per the insurance type, for example, in health insurance one may be subject to a mentioned suicide clause. Similarly in a dental insurance there is a waiting period that is required. Do not forget to ask your insurance provider company about the special clauses and waiting periods that are included. You do not want any negative impact on your coverage no matter what. 

6. Some add-ons to your policy can be great endorsements and this might help to get you more coverage. In few cases it has been noticed that endorsements have brought some alterations in a policy where coverage is reduced or limited. There are many details you can know about these endorsements. 

7. Do you what is the basis of a claim settlement and what it represents? Well it is simple that the terms and conditions under which the claim is reimbursed is what it denotes. You can have an actual cash value policy or a replacement cost in home insurance. There is a vital difference between the amount you pay and the claim settlement basis offers. Know your rights as a consumer and know all the questions that you need to ask to get the best out of your insurance policy. Furthermore, it is imperative that you ask your insurance company or the provider how the claims can be paid and what are the processes involved.


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