Buying an Insurance Policy: Things to Remember

Buying an insurance policy is also a kind of financial planning. No matter what kind of insurance policy you buy, it will always help you financially. Let's say you bought car insurance but you did not encounter any accidents and you couldn't claim, so you might think your money is wasted. But thing the other way around, what if you had encountered accidents? wouldn't you be covered. You can always talk to an insurance agent to take decisions for kind of insurance you need to buy for financial planning.

Things to Remember While Buying Insurance Policy

There are a lot of things you need to take care of when buying insurance policies. A simple mistakes will put you into a lot of troubles like being exempted from the coverage, not getting full coverage, etc.

One of the major things you need to remember when buying insurance policy is to read the insurance terms and conditions carefully. Well, it is true that the policy terms and conditions are too many and they are usually printed in small letters and hard to read but no matter what you need to take the trouble of reading everything in fine print and understand the terms and conditions of the policy and the coverage.

The second important thing is you where you buy the policy from. You can buy from the company directly or from an agent. Sometimes when buying form agent it is very likely that you will be scammed.

Thirdly, you need  researched various insurance companies and compared their packages and prices. DO not go after some company just because someone recommended. When you find the company, buy directly from their company or from their official; agent or official website. When you do that it is less likely that you will be scammed.

How to Choose Plans

There are numerous insurance policies and you cannot go on buying them all, you will have to choose insurance products based on your needs. For instance, you can choose between term life and whole life, there is no need to go with both. Which one you need depends on your specific needs. If you want to buy insurance as an systematic investment plan, you can try endowment insurance but if you are already investing in stock market, this insurance plan might not be the best for you

What to do When You Miss Your Premiums

You will get coverage as long as you are paying premiums. When you don’t pay the premium, you will not get coverage. Therefore, it is very important to pay the premiums on time. But what happens when you fail to pay the premium? You don’t get the coverage, that is for sure but what about the money you have already paid to the insurance company? Can you get what you have paid? I mean is there a way to get refunded when you miss paying your premium and your insurance policy becomes invalid? Is there a way to reactivate your policy by paying penalty?

How To Decide Between Local Insurance and International Insurance Company

If you look at the operational insurance companies in your country, you will find that some insurance companies are home grown companies, these companies are created by your countrymen. Whereas some companies are foreign companies, these are the subsidiaries of international insurance companies. When you are buying insurance product, you can go with either a local insurance company or an international insurance company. But the question is how do you decide which one is good for you.

 Trustworthiness: Well, it does not matter whether the insurance company is local or international, what matters is how trustworthy it is. Do your own research to find out how reliable the company is and how happy the existing customers are.

 Products: Don’t choose abc or xyz company, always check what abc is offering and what xyz is offering. In other words, you need to check what kind of insurance policies are available and what kind of coverage are being offered.  Just don’t choose a company, also focus on the insurance products. Choose a company that offers the best product for your needs, regardless of whether it's a local or international company.

When it comes to buying an insurance plan, what do you prefer, would you choose to go with local insurance company or would you try international company? What are the pros and cons of using local company vs international company? Well, as far as I am concerned, I would choose the company that provides the best insurance products for the most reasonable premiums. I do not care about whether it is a local company or an international company, what I care is the insurance coverage and the premiums. By the way, I am with local insurance company because that’s the best product I can get. By the way, have you insured through a local insurance company or international insurance company?

Why You Need to be Honest While Buying Insurance Policies

The purpose of buying insurance policies is to get financial coverage in case something happens to you (life insurance) your assets (property, car, business, etc.). Even though insurance companies provide coverage they always try to find loopholes to deny coverage. Therefore, you need to take insurance applications series. Using fake details to buy an insurance policy can lead to denied coverage. You should always be truthful while  submitting your information, even you provide wrong details unintentionally, you can get into trouble. Actually, insurance companies are quite adept killed at spotting inconsistencies and fraud in the policy document. You should never try to do anything stupid to claim your insurance, actually attempting fake claims will not only deny you coverage, it can even result in legal battles and possibly you will have to go to jail for insurance fraud. Making fake insurance claims are considered financial crime and in many countries there are strict laws regarding fake insurance claims. Therefore, always provide accurate information and never make any kind of fake claims. If you are not sure what kind of information you should provide always seek help from the agent or a professional. Always submit accurate documents. Silly mistake can deny you coverage.

How to Save Money on Insurance

An individual needs multiple insurance which can be a financial strain. Some insurance policies require you to pay premiums for many years, which can also become a financial strain for individuals who have bought these policies. However, there are also ways to save money on your life insurance policy.

Some companies offer No Claim Bonus if you do not claim insurance during the insured period. Let’s say you have bought card insurance and nothing happened to your car so you did not have to file for claim. If this happens, some company offer No Claim Bonus while insuring for the consecutive years. Check if your company has this provision.

Buy insurance policies during promotions. This can save you a lot of money. Insurance companies frequently run special promotions or sales, such as Black Friday or holiday sales and often offer discounts or cash-back incentives during these periods.

 Pay Annually. When you pay your premiums annually, you will end up paying bigger amount but you will also save money compared to when you pay monthly or quarterly. Annual payments often come with discounts or even cashbacks. By choosing annual payment you avoid the extra fees associated with more frequent payments.

 Always pay your premiums on time to avoid late fees and fines.

Understanding Your Policy Coverage

You buy insurance to get financial coverage when misfortunes happens (life insurance), you become sick (health insurance), your property gets damaged (homeowner’s insurance), you get into accidents (car insurance), etc. Buying insurance is not just paying premiums, it is also understanding what kind of financial coverage you will be getting. Therefore, it is very important to know what your insurance policy covers. While the person at the help desk of the insurance company or the insurance agent can help you understand the policy you are buying, you still need to take a pain of reading the detailed terms and conditions. Sometimes people get tricked because they skip the fine print, which will allow insurance companies to take advantage of them by denying coverage. For instance, sometimes your health insurance company might simply reject the claim saying it does not cover health risks during pandemic. Or, your homeowner insurance claim get rejected because they mentioned that you will not be covered for natural disasters. Make sure to read all the clauses to understand what are included in the coverage and what are not included. Therefore, you should be always reading and understanding your policy fully to avoid unpleasant surprises when it comes to claim your coverage.

What Are The Benefits of Buying From a Broker

I believe it is better to buy insurance policy directly through the company, either visiting the company in person or buying directly through their official website. However, I also understand there are a lot of benefits of buying from insurance brokers. Here are some benefits I have identified.

Understanding Policy Document

You need to read all the clauses in your policy documents and this can be really challenging as the terms and conditions are usually printed in small 8-point font on four top six pages. If you have an insurance broker, he will help you understand all the terms and conditions, you can even ask them read for you. Sometimes clauses can be difficult to understand and a broker will help you understand all these clauses. This is a significant advantage.

Comparing Insurance Products

 An insurance broker will also compare various insurance policies and recommend the best one for your needs. You can ask recommendations not only about the policy but also insurance companies. Getting guidance from expert is another benefit.

Claiming Coverage

Claiming for coverage can be challenging. When you buy from a broker, he can also help you while making insurance claims. You will have someone to assist you personally.