What are package policies and are they good for you?
You probably already know about Life Insurance, Health Insurance, Term Insurance, Car Insurance and other types of insurance policies. But, how about a package policy? Well, if you didn’t already know, a package policy, also known as a multiple-peril Insurance policy, is a type of insurance that groups various insurance coverages, that complement each other, into one single policy.
Are package policies good for you? If you’re a business owner, a package policy of commercial insurance just might be heaven-sent for you. The benefits of purchasing a package policy include lower costs, broader coverage for losses that usually occur together, time efficiency, etc.
Advantages of A Package Insurance Policy:
High Degree of Coverage
A package policy can cover you against all sorts of risks under its protective umbrella. For instance, a single policy can insure you against property risks, asset risks, loss of income, equipment breakdown, theft, crime, general liability cover, etc. Choose from different available packages based on your needs.
High Degree of Customisation
You have the flexibility of designing the policy based on your insurance needs by combining protection offered against various risks in order to safeguard your property and other resources. You can also choose the extent of coverage required to cover the risks.
Most insurance companies will offer you good discounts since you’re opting for a bundle of insurance covers from them. In that respect, going in for a package policy will be cheaper than paying for individual policies.
Additional Reading: How To Choose A Comprehensive Health Insurance Insurance Plan
Signing up for a package policy can prove to be really time efficient in the long run since you won’t need to bother about acquiring separate insurance policies. One policy, one document, one signature and you’re done! Also, think about how easy it is to organise and maintain one single policy instead of a bunch of separate policies.
A few things to consider:
You need to think carefully about the insurance covers you want to include in the package. Packages containing covers you don’t really need will increase the cost of your insurance. Moreover, keep in mind that different premium rates apply to different risks. These premium rates are determined by the covers you’ve chosen. The total amount of premium is calculated based on the total number of covers you’ve chosen for each risk.
For instance, if you’re looking to acquire a Group Accident Policy, the premium is determined by these factors are:
- Employee type
- The amount insured for each employee
- Number of employees to be covered under the policy
Additional Reading: Benefits Of Buying Term Life Insurance Early
Avoid Add-on Policies
There may be times when your insurance agent will suggest that you opt for some add-on policies as well. Think carefully before you agree. Learn more about the pricing and benefits of each add-on policy and consider them only if it makes sense to you.
Additional Reading: 5 Nagging Insurance Queries Answered
Now that you know a little more about Package Policies, maybe you can consider getting one. And if you’re looking any other financial product, BankBazaar is the place to go.