There’s no question about it: everyone needs an insurance policy. Many of us invest in at least one kind of insurance policy as we grow older. This is the right way to prepare for what lies ahead. But we should also bear in mind that there are some things we don’t know about our policies. Some insurance policies are not comprehensive. They are not going to cover you for all your emergency expenses: car accidents, medical bills, unemployment, retirement, and many others. Insurance policies have limits. This is what insurance brokers don’t tell us.
Low Monthly Payments Are Not Better
Some insurance brokers offer you policies based on how much you can pay monthly. These lower monthly premiums are not better, of course. These mean that you’ll have a lesser payout when your policy matures, and you’ll be subjected to more deductions and less coverage. If the policy sounds too good to be true, it probably is. You need to choose a policy that offers you better value than what you’re paying for it.
Medical Payments Do Not Cover Your Medical Bills
The insurance company will determine the value of the medical care given to you. If your medical bill is $5,000, the insurance company may opt to pay only $3,000, while you have to settle the balance. This is something that not all brokers discuss with their clients. They let clients think that by saying that they have a $10,000 medical coverage, they can use that amount to cover their whole medical bill. Some policies get even murkier when dealing with medical expenses incurred because of car accidents. They may argue that this isn’t part of their coverage.
Insurance Plans Do Not Fit All Situations
Is this your first time talking with a broker? The agent may likely persuade you to buy an insurance policy based on the low monthly premium and the expansive coverage. They are going to offer you their “best-sellers.” What they don’t understand, of course, is your financial situation and health.
If you are in debt, a term life insurance is the most affordable type of policy you can get. If you have a bit of extra cash, you can choose a two-in-one insurance-investment program. If you have a health problem, you might want to go with a plan that’s partly life and partly health. Are you worried about your family? There’s also a family insurance policy.
Payouts Are Not Easy
This is something you should clarify with your broker when you inquire about an insurance plan. What is the process of filing for and claiming a payout? How long will it take before you receive the payout? Tell the broker to be very detailed when they discuss the process with you. This will help you decide if the plan is worth all the trouble. Will you be willing to pay a premium of $75 to $100 a month if the company will take weeks to process the claim?
Picking an insurance plan is a bit overwhelming. But to make the process easier for you, get a broker who will be upfront with you. Do your homework. Research the different plans available to you even before meeting with a broker.