Availing a life insurance policy is a must, if you have dependents and is the first step of financial planning. Life insurance plans help your family financially, when you are not around. You should be very careful when availing a policy otherwise your family will have to face difficulties while making a claim.
Many people keep paying the premium each year, but end up getting insufficient coverage. So, do proper research while availing an insurance policy. In this blog, we will discuss various tips which can help save you from the insurance trap.
Before availing an insurance plan, make sure you know the exclusions and inclusions in the plan. Get to know what is covered under the policy and what is excluded from the policy. If you avail insurance without knowing this, you could be in for a nasty shock. There are chances of claims getting rejected in the future, if the claim does not match the insurance coverage conditions.
To save money, many people buy an insurance policy with low premiums, which barely covers anything. If the policy does not cover essential things, it would not be helpful in the future and premiums paid will be a waste. Buying an affordable policy is not a bad idea, but make sure it covers things you need.
There are many insurance policies available in the market and you must choose the policy which suits you best. Do not simply listen to your agent and buy any policy. Some agents suggest that you avail a policy which suits their needs and not yours. They suggest plans which give them good commissions. So, you must choose the policy which is suitable for you and meets financial goals and needs.
Availing a policy above your budget is also a bad idea. You are over insuring yourself and this means high premiums. You should avail a policy which is affordable. If you cannot afford the premiums and don’t pay them, your policy lapses.
Make sure you read the fine print, before availing the policy. Many insurance companies will have some conditions regarding premium payment, but these will be in the fine print. So, there are chances of you missing something important and falling into a trap. Therefore, it is advisable to read the fine print carefully before signing the policy papers.