One of the things people do not like talking about is getting insurance coverage either for their life or non-life. Nobody wants to think about the possibility of something bad that may happen to their lives or belongings. In general, it is not a desirable thing to discuss with anyone else.
Since no one wants to talk about the topic, people just refuse to read and find the best life insurance cover out that exist in the market. Nonetheless, insurance coverage sells because they do mitigate the risk we are faced each day. Insurance coverage pays for an agreed compensation once the potential risk occurs.
To guide us in covering our risk in identifying the provisions of the insurance contract, here are some points to consider.
1. Beware of cheap premium plans. Their policy may have taken out some standard provisions that are costly, but are found in other providers. You have to scrutinize the different provisions related to the benefit and compare them with the other providers’ policies. Premiums that come cheap may cost the buyer future losses when the unexpected risk happens.
Focus particularly on the provision where the exclusions of the coverage are listed. As the saying goes, “you get what you pay for.”
2. A good number of people who have paid for an insurance plan are not fully aware of the specific details in their insurance contracts. When the event occurs and they file a claim, they would be surprised to learn of the exclusions of their contracts. These exclusions are what you call gaps because if the event under exclusion happens, then you may not receive a single penny for the loss. This is the reason why you should go over the contract even before paying the premium so that you would know what losses you are covering and not covering.
3. Finally, for a sum of between twenty to fifty dollars a year, did you know that you can improve on the fine prints of you insurance coverage if you are not satisfied with the standard provisions of the contract?
The next time your friend from the insurance company visits your office, ask him to discuss with you the concerns you have with the standard provisions of the insurance coverage on either your car or house. Ask the guy if you will receive reimbursement on medical expense when you encounter a car accident, while driving. You may also ask him if your home insurance covers storms and/or flooding.