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5 Insurance facts an advisor won’t tell you

Life is too short to be wasted doing tedious tasks. We often find it hard to invest some time looking at the pros and cons of our decisions. Similar is the case when it comes to buying something. We tend to take the buying decisions in hurry without actually attempting to know the benefits or otherwise of the spending.

While buying insurance policies, we often approach an agent for help. Whatever the agent says about a policy we believe that to be true and take the purchase decisions accordingly. However, there are a few facts that your agent won’t reveal about insurances. Following are a few such facts that you need to know. Have a look-


The benefits of annual or quarterly payments
The ultimate aim of any agent is to sell as many policies as they can and achieve their set targets. They will try every possible way out to make the policy look attractive and the premiums affordable to the prospective clients. Many a times it is seen that they break down the premiums into low monthly payments so that the amount appears smaller. However, they are most likely not to reveal that paying payments annually or quarterly might help you save some bucks.


Disclose the exclusion list under coverage
While explaining the features of a policy, agents will tell you a lot about the kind of claims that are covered by a particular policy. However, insurance policies also come with a long list of exclusions that your agent may not disclose until you yourself ask about it. To avoid claim rejections at the time of emergency, do read the agreement clauses carefully and take an informed decision regarding the purchase of the policy.


Agents won’t compromise with commissions and targets
Agents help the insurance companies to reach to their prospective clients in return of commissions for per policy sold. Insurance agencies also set defined targets for the agents to achieve in a stipulated time. Hence they do have a kind of mental pressure to achieve targets. Hence, the policies your agent suggests you to buy may sometimes be slightly biased and not favourable for you.


Agent won’t tell you that two is always better than one
Insurers come up with new and tempting policies each day. What is covered by one insurer might come under the exclusion list in another insurer. Hence it is always better to buy two or more policies so that you don’t end up getting the claims rejected at the time of urgency.

Nothing comes for free; not even an advice. Your agents will never advice you to buy two policies when one of them will be from a different insurer.


Agents won’t remind you about renewals
Buying an insurance policy helps us breath with peace. However, it is not that easy to remember the date for renewal of the insurance policies. If you don’t keep a track on your premium payments and renewal dates, you may end up lending yourself into troubles. Don’t expect much from your agents or insurers when it comes to notifying about renewals.

Keep yourself open to opinions and advices but never follow anyone blindly. You are the best person to take your own decisions based on your financial stability, financial goals and expectations. Be cautious and take informed decisions. It is better to be safe than to invite unnecessary trouble by following your agent’s advice blindly.

Be wise and alert. Good luck.

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