Making a mistake with your insurance could hurt you, your loved ones, and your business. We are here to help you steer clear of such errors and ensure that you are adequately covered.
The mistakes will do two things to you; leave you unprotected or cost you more than necessary. If you get things right with your insurance (and we hope you do), you won’t have to pay a cent more than you should for insurance.
That said, make sure you avoid the following blunders when purchasing insurance coverage;
1. Not Understanding Your Policy
While it’s pertinent to know your deductibles, you should also be aware of what’s not covered by your policy before a disaster occur. It will also be detrimental to ignore your insurance exclusions. Remember that every insurance policy is a contract, and there are exclusions.
That’s why you need to have an expert insurance advisor by your side explaining what is not covered.
2. Failing To Update Your Coverage
Our lives are not static; there’s either childbirth, marriage, relocation, or home improvements. It would be best to let your insurance company know what has changed in your life and your policy adjusted to reflect the new change.
If you are unsure of what has changed in your life, do an annual review where you have a sit down with your insurance agent.
3. Buying Policy at a Wrong Place
Why would you also purchase a life insurance policy at an auto dealership? Or auto insurance at a grocery store. As good as the deal might appear, you are definitely in the wrong hands.
Never buy insurance policies from somebody you went to buy something else. Buy from a reputable and licensed insurance agency.
4. Settling For a High Deductible
What a high deductible does is keep your premium at a reasonable level, but in the end, you will be paying more for a claim out of pocket. Deductibles are bad, but can be a great strategy to keep cost low. But can you always afford the out-of-pocket value? Make sure you aware of all deductibles especially percentage deductibles of 1 or 2 % on your home policy. That can be a lot to pay out of pocket if you are not prepared.
Imagine filing a $1,350 property damage claim when you have a $1,000 deductible. That’s a lot to pay out of pocket.
5. Choosing a Minor as Beneficiary of Life Insurance
While you have good intentions by buying the policy for your children’s benefits, naming them as beneficiaries while still a minor is a terrible idea. What if you die before they reach a legal age? Know that the benefits will be hanging until a guardian is appointed.
It’s best to name your spouse or trusted adult as the beneficiary. Better still, set up a life insurance trust for your kids.
If you can avoid these insurance blunders, your coverage will do what it’s meant to do. Don’t fall for dated sales tactics; speak to an insurance advisor when in doubt. Know that your loved ones, employees, and self-esteem counts on you to make the right call.