No Festive Deals Here: Why Insurance Isn’t A Diwali Discount Purchase

Diwali is the season for discounts—on appliances, gadgets, and even homes. But when it comes to insurance, Diwali does not come with any special offers or discounts. Also, insurance is not something one needs to buy when there is an offer or discount. Whether it is life or health insurance, it is an important part of financial planning, and one needs to buy insurance according to one’s needs.

In reality, there are no special offers or discounts that are available during the Diwali festival. “Having said that, one thing should be known very clearly: the health or life insurance product you’re buying is the long-term protection. Instead of looking for some ‘festive deals,’ policyholders should focus on what the insurer's claim settlement history is, whether the coverage you need is sufficient, and customer service in the event you need assistance,” says Sarita Joshi, head of health and life insurance, Probus.

Insurance Is A Long-Term Financial Product 

Insurance is not a product that is bought seasonally; it is a long-term financial protection product. Policyholders should know and look for comprehensive coverage, a sound claims ratio, a solvency track record, and beneficial health or financial conditions for their family. One should view the festive season as a time to reflect on what your protection needs are that haven't been met for the long term. In case one is not happy with their insurance policy, now is also a good time to port their policy to a different provider. 

Firstly, there is no such offer available as a festival deal. So, not only during the Diwali festivals, but whenever policyholders are buying insurance policies, they should have in-depth research on the plans, compare them with other insurers, and review the details carefully.

Do Due Diligence 

“It is important to review the waiting periods, exclusions, room rent caps, and conditions of renewing the insurance whenever necessary. These 'fine print' details can have significantly more weight to your insurance protection,” says Joshi.

When it comes to health or life insurance, adequate protection is key. In a metro city, a sum assured of at least Rs 15 lakh is recommended. In the case of life insurance, a coverage of at least 10 times your annual income is the rule of thumb.

The right policy will benefit your family from a financial protection standpoint long after the festival lights fade.