Insurance is one of those things you
shouldn’t wait to find out just how
important it is before you buy. But when it
comes to getting proper insurance, there’s
usually confusion. Avoidable mistakes tend
to happen when it comes to protecting
yourself, your family, business and future
income.
Insurance is protection from financial loss;
it’s a form of managing risks against
negative contingencies; you can say it’s
about giving yourself peace of mind
knowing your essentials are protected. So
if you have a lot of valuables, your
insurance plans should be in place to
protect these assets and finances as you
need it to, because a simple mistake can
really affect you financially and otherwise.
To help you keep from losing your cool
when it’s time to put an insurance plan in
place, kindly ensure you avoid these before,
during and after you make an insurance
purchase.
1. Waiting Too Long To Purchase
No one knows when disaster strikes, it
could suddenly or never will; life is sure full
of uncertainties. Don’t wait till life happens,
get your “stuff†together and put your
house in order. Buying sooner rather than
later can save you money, while dragging
your feet and waiting until later could
affect your ability to obtain the amount of
insurance you really need as cost of living
keeps rising with each tick of the clock.
So, the earlier you purchase an insurance
plan, the sooner you can worry less.
2. Not Knowing The Amount of Coverage
You Need
With insurance, people normally have
issues with the exact type and amount of
cover needed, whether it’s in an attempt to
save cost by taking some necessary plans
off or being carried away with the
prospects of insurance and spending on
needless policies. Be sure that you are
knowledgeable about the coverage you
need, calculate the meaningfulness of
protecting your assets or valuables so you
know the amount of premium needed to
cover it/them if loss occurs.
3. Thinking That You Can’t Afford
Insurance
In reality, Insurance is designed to provide
you with coverage for a specific length of
time, at an affordable cost. Typically, you
only have to pay for a term and renew after
your initial term expires, however,
subscribing to a long term insurance plan,
lowers additional costs on term renewal. In
the long run, purchasing a longer term
policy will better your chances at saving
cost. The best thing about insurance is
that it offers organizations affordable
coverage [at times opportunities to pay in
instalments]; while individuals with different
income levels, have the ability to obtain
affordable coverage when they need it
most, as they may have many financial
responsibilities, with includes debts.
4. Failing to secure continuity by having
Beneficiaries
As a bonus feature, some type of insurance
covers, allows for transfer of beneficiaries
of your choice. This makes it important for
you to include primary and contingent
beneficiaries in such an insurance
subscription. Having “back-up†beneficiaries
protects your investment, ensures
continuity as policy proceeds will go to the
listed beneficiary in your absence, coupled
with the relief of not waiting too long to
get the insurance claim. So, don’t neglect
to keep your beneficiary designations
updated and your documents safe. Major
life events like marriage, demise of a loved
one or even divorce make it important to
regularly review your beneficiary
designations periodically.
5. Buying Insurance Without First Doing
Research
Understanding the insurance lingo and
knowing the questions to ask before you
buy, empowers you to choose the right
type of insurance plan to meet your needs.
If something doesn’t make sense during
your research, reach out to an insurance
broker for help. Nowadays, you can find
just about all the information online that
will advise you on insurance providers, help
you understand the variety of products
available, know the proper insurance
company to choose, compare insurance
policies and prices which fits your monthly
budget best. If you don’t have a broker yet,
CompareIn is more than glad to help.
This article is provided
by compareinsurance.com.ng the online
insurance portal for buying insurance from
Nigeria’s most serious insurers in 3 simple
steps.
Kindly visit our website
on
www.compareinsurance.com.ng or call
Sola on 09090004273 to get more
information and help today.
Source:
dailypost.ng/2018/01/29/5-
common-insurance-mistakes-avoid/
