Is Buying Insurance Gambling Blindly?

‘INSURANCE’, the word itself sounds fishy as it comprises of hidden facts and complicated terms and conditions. On top of everything, deceptive agents and endless claim processes make it more dislikable. People usually frown upon whenever they come across ‘Insurance’ word. Let’s take a quick look at the things which make people think so:

People seeking for insurance firstly need to understand that insurance is a process designed to attain win-win state for insurer as well as insured. Here, insurers also seek for their profits. Hence, fancy clauses have been put in to the policy to beautify it and make it more appealing. But the truth is you might not require it. You may get caught up and by the time you come to know this, you realize the delay which doesn’t let you make it tailor made as per your requirements.

Insurance agent plays an integral role in the entire process. People get blown away by the exaggerated speech given by the insurance agent and sign the policy documents without fully understanding the plan they are going for. Taking a policy without any homework can give you annoying outcomes. It’s strongly observed that many times claim comes up and manifests that policyholders are not getting what they were promised.

Potential buyers should read each and every policy papers including terms and conditions and understand the policy being explained to them. Buyers should ask for minute details pertaining inclusions and exclusions. Since Insurance is a type of investment, premiums and returns become fundamental factors of the discussion. However, buyers should thoroughly understand inclusions and exclusions to make it more value for money. Interrogation is the best way to understand the policy. Every counter question will unfold all the twists in your mind. This way you can save yourself from making a wrong choice.

Insurance agent always tries to draw a beautiful picture of the returns of your policy in his convincing speech. Rather getting boasted with these colourful promises you should make a fair decision based on rational thinking. Don’t end up paying high premiums for the services which you hardly use.

It’s all about commission. Insurance agent will never give you an idea of share of his commission in your premiums and processing fees. The lesser this amount, the better will be the plan. Claims: the most terrible part of the entire process. Nothing can be worse than your claim gets stuck up for no reason. Buyer should study the insurer’s profile or background including its claim settlement ratio. Your agent doesn’t have any role in claim settlement process. He will neither interfere nor listen to you in claim troubles. You need to follow the standard claim process as mentioned in the policy by the insurer.

Whatever the scenario is one must do homework with online comparison of quotes and claim settlement ratio to check the efficiencies of different insurance providers. Taking it casually and signing the policy papers by overhearing the details can harm your finances badly in future neither you can enjoy the benefits which made you purchase the policy.