Be it movies, or TV dramas, the job of an insurance agent has always been portrayed as a stressful one. By good fortune, these jobs have been made easier by the advent of the online mode of possibly doing everything. But what remains the same is the stressful job of buying an insurance plan. As big a conundrum it is believed to be, as indispensable it is. So here are a few handy tips to help you out in the strenuous process:
Identify your needs first
The most important step in buying any insurance plan is to identify your needs first. If you do not know what you are looking for, you’ll never be able to get the right plan. If you are the sole earning member in the family, you will need a more comprehensive plan. On the other hand, if you do not have anyone dependent on you and your earnings, a different kind of plan is required.
- In the case of a life insurance plan, you will have to decide between term life insurance and whole life insurance.
- Similarly, while choosing a vehicle insurance policy, you will need third-party insurance (as mandatory by law) cover. Accident insurance cover, theft insurance, zero depreciation insurance are all other types of insurance covers that you might take depending on your needs.
Know the right time to buy an insurance
Apart from what you need, you also need to know the right time when you need it.
As in the case of health insurance, you will need a more comprehensive plan in the later stages of life. On the contrary, if you fall in the younger section of the population, you can also take a more generalized insurance policy.
To talk of vehicular insurance, you need it as early as you can after purchasing a vehicle; it is mandatory by the law.
Understand the policy
Just finding a policy that matches your needs and requirements is not enough. Decide whether you need term insurance or life insurance. What is more important is you need to carefully understand, in detail, all that is covered and not covered in the policy you wish to buy. Some of the points you must keep in mind are:
- What amount of premium is to be paid?
- What time period is covered by the policy?
- What are the terms and conditions?
- What amount will be recovered when the policy falls due?
Compare various policies
Do you just buy the mobile phone from a company you see first in the market? Or you compare various companies’ mobile phones and then choose the one that suits you the best?
So is the case with insurance policies. There are so many companies providing insurance policies at different rates, with different terms and conditions, offering different premium rates, etc. Always compare the policies of all the companies in the market and then choose wisely the policy best suited to you.
Now comparing so many policies is not child’s play. You need experts for this. There are innumerable websites and apps which help you in comparing different policies and plans.
Select a policy that suits your budget
A higher premium does not mean a better policy! You read it right. It is not always true that an insurance plan with a higher premium amount is better than any other with a comparatively less premium amount.
No doubt, it is imperative to choose a policy that covers the most, but at the same time, it is important to ensure that you do not spend unnecessarily on an expensive insurance plan.
If you expect your finances to be unstable for the next few years, do not spend your money on buying a very extensive plan. Remember, you are taking an insurance plan so that it helps you in case a contingent liability falls upon you. Don’t let the insurance premium become a burden on your finances and earnings.
Consult an expert
You might not need an expert’s advice in buying a shirt, a pair of shoes, or even a headphone, for that matter. But purchasing an insurance plan is not as easy as buying any of these things. Accept it or not, you don’t know the technical terms and concepts involved in a policy agreement. Rather than regretting after getting stuck in a wasteful insurance plan, try consulting an expert.
The expert must also be the one working independently, i.e., not associated or working for any particular insurance provider company. This will help you to get an unbiased review of all the plans and policies suited to you.
Choose between online and offline modes of purchase
Had it been 2010, you would have been required to call an insurance agent to your home or visit one in his office to learn about various plans. But this is 2022, and we have got ample websites and apps that give you detailed analyses, comparisons, pros, and cons of innumerable categories of plans along with online purchasing options.
Also, many companies provide additional discounts and offer on online term life insurance if you purchase their insurance plans online from their website or app.
Read all documents carefully
After you select the plan to be purchased, read all the policy-related documents carefully. Every term and condition of the documents must be clear to you. Leave no doubt, as it may turn into some unexpected problem later. Take your time, but be clear with all the clauses of the agreement.
Consult an expert if you need to, but understand the documents wholly.
Provide truthful information to the policy provider
You will have to do a tedious task at the end of it all! But be careful!
Filling a long-form is not at all an easy task. But you need to keep in mind that every information you provide in the form must be true to your knowledge. Any false information, especially relating to medical history while buying health or a life insurance plan, may lead to the cancellation of the policy thereafter. Right from general details such as your name to specific details such as the last time you fell ill, all details must be genuine.
Conclusion
Although it may seem like much, it is not too difficult to buy the right and best insurance plan as per your needs. What all is to be done is, you have to take each step carefully, keeping in view the consequences if you go wrong. After all, it is a matter of an insurance plan!