“You would not cancel your insurance policy in the middle of a hurricane; you should not sell silver when it takes a tumble. Like any insurance, silver’s value will pay out over time, not day by day.” -Howard Ruff
Insurance is the metaphorical safety net you purchase to protect your family and yourself should any untoward incidents happen. While many have largely resisted getting themselves one seeing no absolute need for it, there has been a massive influx of individuals availing themselves of insurance policies. Most individuals make the mistake of not insuring themselves as they see this as an extra expense whose payoffs they do not get to enjoy unless they die or sick. In other words, they see insurance policies as physical manifestations of delayed gratification.
However, the reality is, having yourself insured is a significant investment and is actually more cost efficient—just think of the piling bills your family would have to contend with if you are uninsured. However, even if an individual does decide to get insurance, it does not automatically mean he is safe from committing any mistakes. Remember, if you do not want to pay more than what you need, you can always keep insurance costs under control by avoiding making elementary mistakes. So, if you are planning to get insurance in the Philippines anytime soon, here are some mistakes you should avoid:
1.) Not shopping around for policies
One common mistake among people who buy insurance is that they do not shop around for insurance. They would usually take a look at the one offered to them and buy that one outright. If you are in the market for insurance policies, make sure to widen your options. Much like how you buy your household items or clothes, look around, choose the best one with the most reasonable price. So, read the insurance guide given to you by the agent, make a few calls to several other companies, and you would see how this would make such a huge different in the price you pay for insurance.
2.) Only comparing rates
While the price and rate are paramount considerations when it comes to buying an insurance policy, it should not only be the only considerations you have. Keep in mind that some insurance policies may be more expensive than the others because it offers a more expansive scope and coverage than the one you are looking to buy. Furthermore, apart from the policies and packages offered, it would bode you well if you also examined the companies complaint ratio and saw if they have had any complaints in the past. Generally, a company with favorable reviews has a higher customer satisfaction—these are the companies you would want to get insured at.
3.) Not comparing agents
You should be as meticulous in selecting your insurance agents as you are with your insurance policies. Remember that not all agents are created equal, and there is certainly a fair share of charlatans in this industry who are just looking to rob you out of your hard-earned money in the guise of selling you an insurance policy. You should always make sure that your agent is properly licensed. Additionally, it would be a great help if you could get referrals and if you asked them some questions. Ask them to explain what they are trying to sell to you and how it adds value to your life.
Just as you would thoroughly read a contract, you should always read the fine print of the policies you are looking to buy. In fact, it is a consumer’s biggest mistake to overlook that and fail to know what their deductibles are. More often than not, if you fail to read your policy meticulously, you would not know what is covered until after disaster has struck. Apart from thoroughly reading your policy, it would also be a good idea to talk to your agents and find out what is covered. Additionally, do an evaluation each year.