4. Track Down No-Claim Discount And Bonus

Upon renewal, most of the time no claim bonus results in an increase in your sum insured. Based on the elapsed policy years, few insurers offer bonuses as high as 50 percent. Some insurers also offers discount in the premium if no claims are made in the previous year. On the basis of your preferences you can choose any one. However, taking care of rising medical inflation no claim bonus carries a higher utility value as the cover keeps increasing.

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5. Study The Premium Chart

Those looking to buy a new insurance policy, this is more applicable to them. An age wise premium chart is prepared by every insurer directing the premiums chargeable according to various age groups. So the amount of the premium automatically goes up when you enter the higher age group. The quantum of hike is what you need to keep an eye on.

"Most people study only the current year premiums while buying policies. In case of some companies, the renewal premiums jump by 30-40 percent once the policyholders cross the age of say 45," explains Chopra, as stated by The Economic Times. Therefore, it is suggested to go through the premium chart carefully to make sure that you will be comfortable paying the premium in the long term.

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