Buying insurance is nothing like purchasing shoes or clothes. When it does not fit, you can simply consider their exchange policy. When buying insurance, you need to ponder carefully because it can greatly impact your life should a disaster happen. Insurance is meant to give you and the family a measure of protection. Basically, insurance is an arrangement that provides a guarantee of compensation for a particular damage, illness, loss or death.
You have many options when it comes to insurance policies. It can be confusing that is why you need an insurance agent or broker that can help you make a decision. Purchasing the right insurance should be determined by your particular situation. You need to consider different factors like age, children, lifestyle and even employment benefits. Experts recommend that you should have at least four insurances – life, health, long-term disability, and auto.
Here are important questions to answer before buying insurance:
Can you afford it?
When it comes to insurance, more is better. More coverage means more protection, which translates to more peace of mind – you just have to keep up with the premiums. Keep in mind that insurance policies are long-term commitments. Many things could happen in a span of five or ten years. You can afford the premium now but what if you can’t in the future?
Think about striking a balance between getting enough coverage to protect your dependents. Choose a premium that you can afford. To do this, you should first measure the right amount of cover you need versus your current financial expenses. Remember that if you fail to pay the premiums, the insurance will lapse.
Does the insurance suit you?
Before buying, you should reflect on your financial goals. For example, if you have a newborn child, you take into consideration the rising costs of education and the possibility that you can become critically sick or pass on. In this case, you can consider endowment policies. These policies can help you save for your child’s education at the same time providing life insurance.
Do you know the Terms & Conditions?
Before deciding, it is crucial that you understood everything. You can start by reading the Terms & Conditions of the insurance policy. As a consumer, it is crucial that you pay attention to the policy exclusions and other things. In the Terms & Condition section, you can find exclusions.
Exclusions refer to conditions where benefits would not be paid. Common exclusions include pre-existing conditions or outpatient services. For these cases, the insurance provider will not pay. This means you should pay directly from your pocket. With this, it is critical that you read the exclusions. While you are at it, understand the deductibles including claim and the age limit.
Do you have an insurance agent or broker?
You should keep in mind that insurance is part of your financial plan. With this, you need the help of an insurance agent or broker. There should be a level of trust between you and the broker. More importantly, the insurance agent or broker should always make you feel comfortable. You have to click here! if you want to talk to an insurance agent or broker.
