10 Tips to Buying Insurance

Buying life insurance can be very confusing, but also a relief when you have completed the process. Relief is typical, do not you feel when you buy another product. Finally, you can do something that is responsible for your family!

Buying life insurance arises from a sense of responsibility. Selfish people will not buy life insurance, whose benefits he would not enjoy. Someone could be years diligently paying life insurance premiums, for the sake of a financial guarantee will he bequeathed to his family.

He will not be present to witness how the fruit of action enjoyed by the people he loves.
Because buying life insurance is one of the most important long-term financial commitments you will ever do, you should be careful in buying. Be careful as consumers will avoid a lot of regret that might occur later. Here are some tips to buying insurance.

We will buy an insurance policy:

• Ask what is guaranteed by the policy and what is not. This includes how much premium to be paid, what are the benefits received, how and when the benefit is received, what additional coverage that can be taken, what risks are excluded, etc..

• Know the experience and qualifications of your insurance agent. Ask how long she had worked as an insurance agent and what their qualifications. More than 75% of insurance agents do not survive until year 2, when he had worked for less than 2 years, you should be ready to see him go. Each agent must be licensed to sell insurance. The license ensures that agents are subject to the professional code of ethics and master the products it sells. Insurance is a complex financial products, not everyone can understand it without a higher education.

• Know the reputation of insurance companies that sell products. When the companies issuing insurance products that you will buy not one name that is widely known (multinational or large national company), ask your reputation. You have to be extra careful when buying from an insurance company whose reputation has not been tested.

• Compare the products offered by similar products from competitors. Comparing term insurance products is much more easily than permanent insurance products. In term insurance, the policy period and the same sum assured, premiums can be compared easily. Also, ask if there is an automatic warranty extension or conversion to a permanent policy? How premiums are charged in 10, 20 or 30 years from now? Is there any guarantee of return premiums? Comparing permanent insurance products more difficult because so many variations. You must understand the basic concepts and terms of insurance used to be able to analyze the plus-minus of each product.

• Study the policy illustration. Ask the assumptions used in making policy illustrations, such as: What is the interest rate or return on investment is used? Is there a minimum guaranteed rate of return? Are premiums guaranteed to remain? If premiums can go up, what conditions cause it?

When you receive an insurance policy:

• When the insurance agent submit your insurance policy, check and read carefully. You can ask for time to study it at home before signing. Most insurance companies provide a period of "cool off" or "free look" where you can cancel the policy and get a refund of premiums within 10 or 14 days after delivery of the policy. If any part of the policy you do not understand ask your agent what he meant. The insurance policy is written in a convoluted legal language and difficult to understand. If you're still not sure of the meaning, ask your agent or insurance company to give an answer in writing. With the document, you will feel calm because it has evidence if at any time get different treatment by the words in the policy.

• Know the beginning and the end of the policy, the amount and due date of premiums, the grace period (grace period), and the recovery policy (Reinstatement period). If your policy is term insurance, learn whether there is a clause changes (conversion) where you can turn it into a permanent policy without evidence of additional insurabilitas. If there is, to know when to be enforced and what the conditions.

• When you buy a life insurance policy, learn about debt policy clause. Find out how long the loan term and interest rate charged.

• Learn about changes to plan provisions. Many insurance policies allow you to change to the plan (program) other insurance berpremi greater. You may need it if your insurance needs change or your insurance company issued a new product that better suit your needs. If your policy does not set clear about this, ask your agent / insurance company and ask for an explanation in writing.

• Finally, review the provisions regarding claims. Know who to contact if there is a claim, what are the requirements that must be completed, how long should an insurance company to process your claim