**5 Things You Need to Know to Avoid Being Deceived When Buying Insurance**
When talking about insurance, essentially it's about protection and benefits. Having insurance means you have allocated financial planning for protection against potential incidents.
Before determining the right insurance, make sure of your needs and look for insurance products that match those needs. There are many types of insurance that provide protection according to their names. Health insurance, for example, provides inpatient or outpatient benefits when the insured falls ill. Life insurance provides a sum assured to the heirs when the insured passes away. Vehicle insurance provides compensation in the event of an accident or loss of the vehicle.
Once you have determined the insurance you need, start looking for an insurance company with a good performance. As an initial step, you can make a list of insurance companies, study their profiles, and understand their financial strength.
In addition, what else should you know before buying an insurance product? Paying attention to the following is crucial to avoid complaints later:
1. **Benefits**
Insurance functions to provide protection. Therefore, you must ensure the benefits you receive. Kim D. H. Butler, author of "Live Your Life Insurance," as quoted from Bank Rate, mentions that ensuring the benefits obtained is a crucial element when buying an insurance product.
For example, if you buy life insurance, ask how much the sum assured will be for the heirs. After knowing the amount, you can calculate whether it is sufficient for your family's needs after you are gone, at least for the next five years.
Another example, if buying health insurance, ensure the class of room facilities you will receive. Is it in line with your expectations? Make sure the facilities obtained match the category of the product you choose.
2. **Premium Amount and Payment Period**
Ensure the premium amount you must pay and how long you need to pay it. After that, you can compare it with the benefits received. Also, ensure the premium payment mechanism, whether it is monthly, semi-annual, or annual. Similarly, the payment methods, such as bank transfer, direct payment, or auto-debit, and so on.
3. **Protection**
Ensure what kind of protection you will receive. For example, when buying health insurance, do not forget to ask about the diseases covered by your chosen insurance package. Adjust it to your needs, especially if you have a hereditary disease that might require future protection.
Another example, if buying vehicle insurance, ask whether the insurance covers comprehensive loss or partial loss.
4. **Product Type**
When buying an insurance product, do not forget to ask about the type of product, whether it is traditional insurance or a combination of insurance and investment—also known as unit link. Each type of insurance will affect the premium amount you pay and the benefits and sum assured you will receive. Ensure the benefits and sum assured you will receive in detail, as well as the investment details in the product.
5. **Claim Process**
Ensuring the claim process when a risk occurs is essential to ask when buying an insurance product. For example, for health insurance, is the claim system cashless or reimbursement? Do not forget to ask about the documents required when filing a claim, the claim submission procedure, and document delivery.
Another aspect, you also need to know whether the insurance company has a branch office in your domicile city. Knowing this is important to ensure that there is a company representative you can reach when filing a claim or if you have other questions.
After ensuring all the above, make sure you read the policy thoroughly, study, and understand it well, especially regarding the rights and obligations of both parties. Let's re-examine the insurance products you want to have to avoid making mistakes in purchasing.
0 Response to " 5 Things You Need to Know to Avoid Being Deceived When Buying Insurance"
Post a Comment