When we buy life insurance, we are like preparing an inheritance to the family if one day we leave them. It is undeniable that one of the benefits that makes people now more aware of the importance of buying the best life insurance. Unfortunately this awareness is not followed by caution or precision in choosing insurance products.
As a result, some mistakes in choosing life insurance products are often the case. Well, in order not to buy one, identify common mistakes in buying insurance, below:
Common mistakes
A common mistake when consumers buy life insurance is choosing a product with insufficient sum assured. Do not forget, the benefits of life insurance is to keep the family's financial condition remains stable if unwanted things happen to us. Therefore, the amount should be adjusted to the routine family expenditure per month, the number of dependent family members, as well as the level of education that we expect to be achieved by family members.
1. Misrepresent the beneficiary
The normal thing for every parent is to leave the property for his children. However, a common mistake that occurs in those who have insurance is to appoint an immature child (under 21 years of age) as a beneficiary. The reason is in the insurance policy, children under the age of 18 or 21 years cannot take or claim your insurance benefits.
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2. Buying products that do not fit the needs
Consumers are often lured by life insurance products that offer various benefits. For example, if an investment-based life insurance product, we are usually offered fantastic returns. Or, we can also offer insurance products with riders or additional benefits are diverse. It seems interesting, but not necessarily we need it. As a result, customers spend money on something unnecessary. If we focus on looking for life insurance products that fit our needs, of course we can cut wasteful spending.
3. Believe the illustrations
Connecting point number 3, keep in mind, the investment projections depicted on the paper to you are just a picture. Not a definite price! It is a fatal mistake if you trust the figures of the illustrations, even to the semicolon. There is no guarantee that at the end of the insurance period, you will get the amount listed there. You also have to think conservatively by not allowing your thoughts to soar if the return on investment you receive is far below that projection.
Understand the insurance policy
In every policy there is a list of items not included in your protection plan. This is called an exception, such as accident events due to something out of dependent such as extreme sports, suicide or if you are hurting yourself or breaking the law. Apart from that, now some insurance companies competitively seek to minimize the exception context.
To avoid errors related to the contents of the insurance policy, especially on the scope of the guarantee, insurance protection, additional facilities, insurance period and deduction, you should consult and negotiate with your insurance marketer staff before the insurance procedure proceeds. Ask for the latest examples of policies, study and ask for terms you do not understand, compare with information you can search the internet, and adjust to your purpose of having life insurance.
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