Buying an insurance policy is basically not much different from buying any other valuable. You need to examine all options, before zeroing on the policy you would like to put your money into. When you insure any valuable — be it a life, or any material possession, ensure that you everything you possible can on not only the policy you are buying, but also the competing ones. So, you should be enthusiastic and exuberant enough to shop around, focused and inquisitive enough to ask questions, and wise and judicious enough to compare prices, rates and benefits. Make sure you are comparing the same coverage. A policy may cost less, but at the same time, may provide fewer benefits.
1) Examine information about the company’s financial strength.
2) Never deal with a salesperson who is “just passing through”. This is primarily because he or she may not be there to provide service when you require it.
3) Ensure that you have got hold of the agent’s name, address and phone number. Keep safe from an agent who refuses to give his or her name and company accreditation or leave a business card.
4) If you have any queries about an agent or broker contact data, go ahead and consult the Department’s Bureau of Producer Licensing.
5) Feel free to ask about the agent’s qualifications, experience and education in insurance.
6) Be alert while dealing with insurance agents of companies that declare or mean in whatever way that they are authorized by the government, labor groups, teacher groups or other professional organizations.
7) Never let emotions get the better of you when you make your purchase.
8) Don’t feel pressurized into making a decision hurriedly. Keep in mid that any insurance policy available currently will still be there to buy the next day.
9) Do not hesitate to tell an insurance agent to leave your home immediately, if you are in no mood to eat into your precious time.
10) Never be “stampeded” or frightened into buying coverage you may not need in actuality.
11) Make sure you know what insurance benefits you already have before you dwell on purchasing additional policies.
12) Keep safe from duplication. You may have the same coverage in a current policy as those being offered to you in a new policy.
13) If you are considering substituting your current policy with a new one, make sure to have gone into the depths of the costs, benefits and conditions associated with each policy, as well as risks associated with a change.
14) Submit correct and complete information on an insurance application to avoid problems in future. Go through and understand what you are signing. When putting your replies for questions on an application, your declarations should be accurate, honest and recorded as you stated. You are accountable for information that bears your signature. Your policy could be declared void if information is misrepresented. Errors and omissions can lead to higher premiums or coverage terminations. So, make sure everything has been put down correctly and clearly.
15) Never ever assume that the policy premium quoted will be the actual premium of the policy, or that the policy will even be approved for coverage. Premium quotations are based on the information provided at the time. If the insurance company finds any of the information supplied to be incorrect or develops some additional information, the original premium quoted may alter or the company may even refuse to issue a policy.
16) When switching from one insurance company to another, do not annul your existing insurance policy until you are assured of the price and that you have been accepted by the new insurance company.
17) Never make payment in cash. Payment by check ensures proof of payment and allows you to stop payment if necessary. Always make the check payable to the insurance company. Avoid making the check payable to the agent.
18) Never sign an application for any insurance until you have read and verified the correctness of the information.
19) Make sure you read and make out what you are signing. When answering questions on an application for insurance, your answers should be accurate, honest and recorded as you stated. You are responsible for information that is otherwise authenticated by your signature. Your policy could be declared void if information is proved to be false.
20) When you receive your policy, make a thorough review the policy’s coverage, including the omissions, with your agent.
21) If you feel like reducing your premium, consider going in for a higher deductible. The deductible is the amount you must pay yourself before the insurance company pays the remainder of the claim. Ensure that you understand how your deductible is defined (per occurrence or illness, per individual or family).
22) You may get in touch with your state Insurance Department’s website to licensing status of an insurance company.
Go through premium payment options. Many companies offer the facility of installment payments for low administrative fees. Premium payments too may be financed. When opting for this, take careful to review the premium finance contract.