Talking about life insurance, a lot of people have started using this product. It is because you will get a million benefits if you buy this type of insurance. This insurance product is only for mortgages, but in fact, the insurer still bears the number of dependents paid if the customer in the stage of old age.
However, when someone buys life insurance, many people still make some mistakes. Life insurance is crucial for you and your family. So, to see if a life insurance that suits you, then you should observe first. If you can’t learn more about the protection offered, then this will be dangerous. In life insurance, there are some mistakes you need to avoid when buying them.
Mistakes you need to avoid when buying life insurance
1. You are not providing the data honestly
It is one of the fatal mistakes that is often a prospective customer to do to get approval in the filing process. But just because lying will cause when you make a claim, the insurance company will reject it.
To avoid something you do not want, you must be an honest customer candidate. If you have ever had a sickness especially critical illness, then you should tell the truth to the insurance agent when you fill in the application letter of life insurance.
2. Insurance premium
The financial ability is the primary factor when you want to buy insurance. But that does not mean it’s the only factor. High premiums should be worth the benefits you receive. The premium you regularly pay to get the benefits of insurance should be following your wallet. It becomes somewhat difficult because a person usually prefers to buy a very cheap insurance premium without understanding amid the benefits they can get. So, you have to observe whether the money you pay matches the benefits you will receive. You can’t only focus on the large-small premium costs. Therefore, you need to compare one insurance product with another product from a different company. Thus, you can see the plus and minus points of each company to determine the final choice.
3. Tempted by illustration
Insurance agents always want to get customers, and they use examples that tempt prospective customers, including you. You may feel dizzy because the explanations are too complicated so you just follow their will, and you can’t think further.
This illustration of profit will arise when you buy insurance with an investment element. The numbers of hundreds of millions, even billions that would tempt you. Many insurance companies sell sweet mouths through illustrations, and you must learn first and be careful. You might be better off separating insurance with investment.
4. Choose the wrong protection
In insurance, much protection is offered, accidents, illness, until death. Needs of one’s protection can be observed from everyday life. A family head, for example, has to allocate protection for his family. By doing this, if something terrible happens to the head of the family, then the family can still live properly.
Besides the lack of protection, you also need to avoid excessive protection. Excess protection means paying more for protection you do not need.
5. Wrong in determining the sum insured
The usual mistake when consumers buy life insurance is to choose a product with insufficient sum insured. Do not you forget, the benefits of life insurance are to keep the family’s financial situation remains stable if the things you do not want to happen to you. Therefore, the amount should be following the routine family expenditure per month, the number of dependent family members, and the level of education you expect from family members.
You should evaluate life insurance products along with the sum insured periodically. The amount of sum assured you felt was enough for five years ago, not necessarily sufficient for now. Life insurance is a growing product to suit your needs and your family.
6. Incorrect determining beneficiaries
It is natural for every parent to leave the property for his children. But, the common mistake that happens to those who have insurance is to appoint an immature child as a beneficiary. In the insurance policy, minors can’t take or claim benefits. You may designate them as beneficiaries, but you should have a legal guardian of your child who is underage.
7. You don’t ask in detail to the insurance agent
When you are very well informed about insurance, you should get detailed and transparent explanations such as insurance products, terms, and conditions, rights and obligations, insurance illustrations. As a prospective customer, you must actively ask in detail to the insurance agent.
When an insurance agent cannot answer and explain your question, then you better not buy insurance from the agent or you will get stakes in the future.
8. Purchase insurance from a telemarketing agent
Insurance is not a simple product. Many chapters, terms, and conditions you need to read, and you understand well by you as a customer. If you just read, then it is not enough. You need to learn slowly and repeatedly for you to understand.
You need a debriefing session long enough, and deep with a direct insurance agent, so you get the satisfaction and belief in life insurance products according to your need. Can you imagine if you only buy insurance via telemarketing call from an insurance agent without you need to read the illustrations, and the terms beforehand? Therefore, you do not have to waste time when an insurance agent offers you by phone without you accepting or signing an insurance proposal.
9. Comparison with other insurance
Before you intend to buy insurance, then you should conduct a survey and find out as much as possible from the best insurance companies. Many insurance companies sell similar products with different terms. Even so, at any particular point, you will see the difference.
You should stay calm, consult a lot with an experienced insurance agent, do not get carried away by emotion or despair. Reevaluate or review your policy thoroughly regarding the above fatal mistakes. Look and see what’s wrong.When you buy life insurance, you will have a few days to understand the policy. If something is not appropriate, you can cancel the policy. Make sure you read and understand the rules written in the life insurance policy.
Here are some mistakes in choosing life insurance that you should avoid. Make sure you are not in a hurry in choosing and do not hesitate to compare every life insurance product of a company.