Although getting an insurance policy for various aspects of our life, such as for securing your car, home or health is quite important as it helps you overcome unforeseen disasters and crisis situations, choosing an insurance policy is certainly not as easy as it sounds.
Before you take the plunge and agree to that great sales pitch by one of those shrewd insurance agents & regret having done it a few days later, you should make sure you research well enough to avoid choosing the wrong policy and getting ripped off in the process. So let’s take a look at few of the common mistakes that most people make while choosing an insurance policy. Hopefully after reading these, you would be cautious the next time you choose a policy for yourself.
1. Not Comparing Offers:
Probably one of the most simple yet an overlooked thing that most people forget to do before going for an insurance policy. Since there are many insurance companies that are aware of the stiff competition and hence try to dish out better deals, you should always make it a point to go through the offers of different companies as you might be able to get much better offers at lesser premiums, which can end up saving some decent money for you in the long run.
2. Inadequate Insurance Cover:
Though financial planners definitely advice not to go overboard when it comes to spending, and I advise the same, it doesn’t mean that you start cutting down on the important expenses of your life. This would only create more difficulties for you as you get on with your life.
In fact, it seems that most people in the world today make this very mistake most often! It is estimated that almost 50 million people don’t have an adequate insurance cover, which means in case of any unforeseen situation, they would be found wanting when it matters the most. You don’t need to make the same mistake – so get yourself adequately covered today!
3. Purchasing Too Much Insurance:
Although this might sound strange, there are many people in this world who don’t can’t decide how much insurance they really need, so they end up going for the higher side, thereby having to pay unnecessary premiums for huge insurance amounts that they don’t need.
This generally happens when smart insurance agents try to get people to go for too much insurance as they get a commission on every sale, so all they have in mind is to maximize the accruing commission, no matter if people get ripped off in the process. Don’t let this happen to you. Research adequately and determine an amount of each type of insurance that you would be comfortable with. Once you’ve identified this amount, you will be able to make an informed decision.