What to look for in that insurance policy?
What to look for in that insurance policy:
The word "UNCERTAINITY" makes it compulsory for every individual or a business houses to buy various types of general insurance policies. But, one must consider the below listed points before choosing any non life insurance policy offered by Insurer.
- Examine all the information about the company's financial strength.
- Never deal with a salesperson who is "just passing through" the features of the products. This is mainly because he or she may not be there to provide service when you require it.
- Make sure that you have got hold of the agent's name, address and phone number. Keep safe from an agent who refuses to give his or her name and company official recognition or leave a business card.
- If you have any queries regarding an agent or broker contact data, go ahead and consult the Department's Bureau of Producer Licensing.
- Feel free to ask about the agent's qualifications, experience and education in insurance sector.
- Be alert while dealing with insurance agents of companies that declare or mean in whatever way that they are approved by the government, labor groups, teacher groups or other professional organizations.
- Never let emotions get the better of you when you make your buy.
- Don't feel pressurized into making a decision quickly. Keep in mind that any insurance policy available presently will still be there to buy the next day.
- Do not hesitate to tell an insurance agent to leave your home without delay, if you are not in mood to eat into your precious time.
- Never be "stampeded" or scared into buying coverage you may not need in actuality.
- Make sure you know what insurance benefits you already have before you go for purchasing additional policies.
- Keep safe from duplication. You might have the same coverage in a current policy as those being offered to you in a new policy.
- If you are considering substituting your current policy with a new one, make sure to have gone into the depths of the costs, benefits and conditions associated with each policy, as well as risks associated with an alteration.
- Submit accurate and complete information on an insurance application to avoid problems in future. Go through and understand what you are signing. When putting your replies for questions on an application, your declarations must be accurate, honest and recorded as you stated. You are responsible for information that bears your signature. Your policy could be declared void if information is distorted. Errors and omissions can lead to higher premiums or coverage terminations. Therefore, make sure everything has been written down correctly and clearly.
- Never assume that the policy premium quoted will be the actual premium of the policy, or that the policy will even be accepted for coverage. Premium quotations are based on the information provided at the time. If the insurance company finds any of the information supplied to be wrong or develops some additional information, the original premium quoted may change or the company may even refuse to issue a policy.
- When switching from one insurance company to another, do not terminate your existing policy until you are assured of the price and that you have been accepted by the new insurance company.
- Never make payment in cash. Payment by check ensures proof of payment and allows you to stop payment if required. Always make the check payable to the insurance company. Avoid making the check payable to the agent.
- Never sign an application for any insurance until you have read and verified the truthness of the information.
- Ensure, you read and make out what you are signing. When answering questions on an application for insurance, your answers must be accurate, honest and recorded as you stated. You are responsible for information that is otherwise authenticated by your signature. Your policy might be declared void if information is proved to be false.
- When you receive your policy, make careful review the policy's coverage, including the omissions, with your agent.
- If you feel like reducing the premium, consider going in for a higher deductible. The deductible is the amount you should pay yourself before the insurance company pays the remainder of the claim. Make sure that you understand how your deductible is defined (per occurrence or illness, per individual or family).
- You can get in touch with the IRDA website to know about the licensing status of an insurance company.
Always buy an insurance policy which suits your needs. Do not purchase an insurance policy just to save on your taxes (life and health insurance).Keep your financial goals in mind.