Have you ever realized that when you talk to your agent, the discussion revolves between the total money involved and how much premium the person has to pay? The discussion is about how easy one insurance company and how the benefit multiplies after paying premium for a certain number of years.
But what the insurance agent don’t tell you is;
The commission the insurance agent gets from selling a policy. Commission is the earning of an agent. More the policy sold, more is the commission.
So what is wrong with commission?
In most cases, commission from selling one particular insurance product is more than another insurance product. Now what happens when the better insurance product is paying less commission to the insurance agent? Majority barring some ethical agents will be pushing you to sell the insurance product which gives him or her, more commission. Therefore, the chance of you buying a product which doesn’t suit you is more. In this kind of situation, always ask the agent to show the entire insurance product offering coverage as per your need and then select one you deem fit.
The clauses read between the lines.
Insurance contract are the most boring set of documents which are binding on the insurer and the person insured.
How does it feel when the very purpose of insurance, doesn’t serve the purpose? For example, a health insurance, that doesn’t cover high blood pressure because it is not in the included disease list.
So, when you are taking an health insurance policy, make sure to read the document in full and raise the entire list of questions, no matter how insignificant they are, to the agent and get full clarification.
Have you asked your insurance agent, how is the claim settlement ratio of the insurer? One the biggest hindrance of taking a policy is the claim settlement ratio, and how long it takes to settle the same.
It has been seen that insurer tried to find out ways on how not to settle claims by finding loop-holes in the contract. For example, the hospital bill will pay for twin sharing room and not suite or single bedded room for patients. Or, the fire destroyed the house long time ago, but the insurer is taking a lot of time to settle the claim.
None of the above situation is desirable. Reputed insurers strive to maintain the claim settlement ratio very high and also make sure that the payout is very quick. Don’t forget to check with the insurance agent on how the claim settlement ratio is and how quick the despatches of claims are.
Know when it is trap!
Terms like double benefit or entire claims settlement or Long term customer bonus are all simple clauses glorified to market a product.
One should be swayed by these clauses as majority of the health insurance companies will be glad to dole out benefits to their customer at a very minimal cost. Don’t opt for choices which you will not require and thus save on bulk documentation and also premium.