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Common mistakes people make while buying insurance

Buying insurance is the safest form of investment for many but most of us ignore the risk factor and clauses associated with it. While the agents put out the lucrative facets of an insurance policy for us, we too fall in their sweet words and often find ourselves at a loss for words to ask the right kind of questions. It would not be demeaning to accept that we are not sure of what to ask from the insurance agent when they meet us.

Let this guide help you avoid some common fallacies.

  1. Often, insurance buyers find that the life insurance is three times more costlier than what it seems on paper but to ward this off, it is important that when buying any such health insurance or property and casualty insurance, ask the agent about any potential discounts on these facets. What we are not aware of is that we can get financial help if we buy our own health insurance. And when we get financial help, this happens mostly if customers go and buy these health insurances in the marketplaces.
  1. Economic conditions of families keep changing and with this change, there might be a greater need for a better and wider insurance coverage than the one you have at present. With our changing scenario, our financial needs too change and it impacts the changes in policy covers. Here, it is advisable that the flexibility of options of change be discussed before one actually invests in one policy. Experts hence recommend reviewing insurance coverage once a year to make sure it still fits your needs.
  1. Do not get misled by the lowest premium policies. In order to make this point clear, it is important that one chooses a policy from that company that has the reputation in insurance market and offers the best coverage. Comparing plans do give us a clear idea on the amount of premium that one needs to pay but it is important to understand here that a high premium policy, the amount that one pays to ones doctor goes down. So before you decide to invest in a low premium policy, check out the pros and cons.
  1. Understand all the clauses and areas that you insurance policy covers. It is important to know that the clauses of coverage change according to the area where you reside and so it is extremely vital that you understand all the conditions amply well.
Concept of Assistance in business with businessman with umbrella

So, before you decide to invest in one insurance policy understand the scheme well and ponder well over your requirement of the same and then invest in one.

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