Purchasing any type of insurance can really be challenging, especially if you’€™re an inexperienced buyer. You might encounter confusing terms and sales talks, which could make the buying process a real challenge. Here are some tips to help you out in choosing the right option.
Review your credit score. Simply speaking, your credit score could affect the rate of your premiums. A good credit score proves you are a trusted buyer, which enables you to get a good deal. On the other hand, having a low credit score can mean higher premiums, so it might be better to boost your credit performance first before making an insurance purchase.
Do not over- insure yourself. What you need to do first is to determine the exact amount of coverage needed for your particular circumstance. Although it’€™s tempting to look for long- term coverage, you should be aware that they cost more and it might be hard to sustain future payments as the premiums rise.
Find an independent broker. Not to generalize, but most often, company agents may have biased opinions in order to make big commissions in their sales. Thus, it would be wiser to work with an independent broker who has an unbiased advice, and who can give you access to more products than just from one company.
Remember that you are the client. Being the client, never at any point during the meeting should you feel intimidated or forced to buy something you aren’€™t sure of. If you sense something is wrong, or if there’€™s anything the agent is not telling you or if he/she seems to dictate what you should choose, then don’€™t hesitate to leave.
Ask questions. It’€™s never wrong to ask questions, especially if there’€™s something you need to clarify. This can also give your agent a hint that you are a smart buyer, and he/she should think twice about trying to trick you.
Avoid expensive riders. It’€™s not unusual that your agent will offer you some add- ons, but think multiple times before you decide that you actually need it. Most often, they are only designed to boost sales, not to actually benefit the client.
Educate yourself. Definitely the smartest thing you could do as a buyer is to study the market. It pays a lot if you familiarize yourself with common insurance terms, so that you’€™ll have an easier time understanding the points during the actual meeting. If you know the in’€™s and out’€™s, you’€™ll also have more confidence to make a bargain.
Check your policy regularly. Most companies send out letters if there are any policy changes, including explanations for implementing them. Make sure you check them out. If you changed occupations or salary, also make sure that you inform your provider, so that necessary adjustments with your premiums or benefits could be made.
Read the fine print. Of course, before signing anything, always make sure you’€™ve read and understood what’€™s written in the contract. If it helps, have a trusted attorney by your side before the contract signing.