Top 10 Lessons before Buying Insurance

We all want to avoid unplanned and untimely expenses. However, there are unavoidable situations that we cannot control like accidents, emergencies, and others events. This is the purpose of insurance plans and it covers various scopes. There are different insurance agencies too that offers specific plans according to programs, which are basically different in premiums and benefits. There are even basic insurances that individuals must maintain and keep, in order to avoid any financial responsibilities and obligations, which could be a loss for the company or a liability in the future. However, those who are oblivious about the rules should learn the basic lessons that others have ignored before buying any type of insurance policy.

10. Check Resources and Assets

The purchasing power of the individual depends on the financial gain that one receives whether it comes from business, employment, and other passive income. This should be the important measurement to get started before buying manifold of insurance programs, which may not fit your budget with the kind of occupation that you are maintaining. If you are just starting, then primarily, health insurance is your best target before pointing your focus in other insurances. This goes if you have a car, and then car insurance is needed. It varies according to ownership and assets at hand.

9. List and Add up Method

An old adage says, “A palest ink is better than the sharpest memory”. It is wise to make an accounting of the things that you have from the house, down to the simple tangible and non-tangible resources. From that list, you could make a simple priority list of which are necessary at the moment and which can be added up later on. Health Insurance is not just the primary obligation that we have to keep and maintain. There are other insurances that we ought to secure that would save us from any losses and financial chaos in the future. You do not need to have them all at once but you just need to live within your means. If your total assets cannot support the acquisition of various insurance products, then you just have to wait until you have fully insured and secured your financial stability.

8. Window Shopping

The simple and practical application of a wise shopping is to check the merchandise being sold in different stores and outlets before you settle for the best. Everybody could claim that they have the best premium insurance services where they could even go beyond the typical advertisement just to get you. Remember, they need your money more than you need them. You just have to be realistic, on guard, that they would offer you of the best policy that you can use, and that can save you from all impending expenditures by tomorrow. It is best to check online testimonials, feedback, and better yet, ask recommendations from friends and other colleagues that you know. In more occasions, instinct and thorough research are your best guards and weapons.

7. Check History

Before you settle to any insurance company, whether it is for a car or home insurance, better check the report from a department or bureau that handles and keeps track of the good reputation that they have. Know when their company begun, check their corporate reports, the performance of their company in acquiring and retaining customers, the number of policyholders, and if other information is possible, you could get some data about their profit ratio. All of us have seen the impact of economic crisis that hit the world in the past few years and we are still getting ourselves back to the path of recovery.

6. Contact Trusted Agent

If you are basing your choice on the recommendations given by your friends, colleagues, and other members of the family who are using the insurance policy of a certain company, then go ahead and contact that agent. You just do not go and visit them and set an appointment. It is better that you know some information from the agent who would disclose all the information that you need. Otherwise, if you do not know anyone, then get their full name, and other necessary details like ID number to verify if the person is truly representing the insurance company or if he or she has a license that validates the future authenticity of the transactions.

5. Be consistent

Learn to be firm in your conviction about the things that you want for yourself and your family. It has been a usual scenario that sales people, with powerful persuasion skills, have the ability to make plan holders and prospective customers overlook what has been originally planned, and bend the person in compromising one’s stand in taking products, benefits, and the assistance they really want. You have to be consistent in what you need and never be swept away from the crafty words and flowery enticing of others.

4. Check Benefits and Premiums

There are many insurance services and products out there that may look and feel just as it has already been offered by the competition. However, do not be enticed with just introductory offers and promos, as most benefits and premiums to be used for insurance may take longer as expected even six months to two or three years after purchase. Do not hesitate to ask agents and sales representatives about the bundled benefits and premiums before availing products and services. Or better yet, scour the internet and everything available resource there is just to assure oneself that what will be bought will be the perfect package.

3. Proper Disclosure of Information

Even though it may sound boring at times, hearing or reading the full disclosure of terms and conditions will really save you and the company, problems about sharing information. Disclosures have been made by the business for them to give a fair chance of transparency for their customers, something that most individuals do not understand because of mistaking pieces of paper with written statements that are too small to read, as a waste of time. It is also the same thing in buying stuff and making transactions over the phone. It is also the right of consumers to have tangible copies of such disclosures for the sake of being fair and honest, and in case it may be used as a reference in the near future.

2. Secure Receipts

Receipts are friends and they can back people up just in case there are queries about the validity of transactions and negotiations made, with vital information such as dates, names of people processing the transaction papers, and the name of the product or service that has been purchased. As they look just like ordinary pieces of paper, usually made in light material and in smaller pieces, they are usually taken as trash or absolutely worthless things. However, understand that these documents can validate warranties, coverage, and even benefits that will make verification and validation processes easier. Keeping receipts will benefit everyone.

1. Read and Understand Each Policy

Most of the people who have misunderstanding with the scopes, limitations, and capabilities of their insurances, including knowing the benefits it can provide, are not realized fully due to the people’s inability to patiently read the fine print and comprehend every context and premise of every sentence written on the files. Yes, it is surprising for some to know that almost every information and detail that comprises the whole policy of the insurance plan is all documented, easily reachable on the hands of the policy owner, usually disregarded. Take time to read the fine print and you will not be deceived.