Common Mistakes People Make When Buying Insurance
To keep your future, your family, and your business financially secure, it’s essential to purchase an insurance policy that fits your requirements and promises long-term benefits. However, an insurance policy brings a set of financial risks and conditions that you need to be well aware of before signing any contract.
Unfortunately, without adequate knowledge, you may choose the wrong insurance policy and add financial strain to your future. Therefore, it’s best to enlist the services of an experienced insurance advisor to steer clear of costly mistakes. To get it right the first time and pick an insurance policy that best suits your needs, Paul’s Insurance has compiled a list of the most common mistakes people make when buying insurance.
1. Looking for the cheapest option
This is the most common mistake people make. Keep in mind that buying cheap is not always the best. You want to first assess your insurance needs, read up on several policies and the benefits they offer, and then check which one corresponds with your requirements.
2. Signing the policy without understanding clearly
Most people delegate the task of form filling to the distributor or salesperson. To ensure that your rights and interests are protected, you must go through the contract process diligently before signing. Seek assistance from a reliable insurance advisor who will help you go over different policies and explain their features.
3. Opting to work with an agent
Many make the mistake of not being ready to discuss everything openly with an insurance advisor. They decide to work with an agent who works for one institution, thereby limiting their access to policies. Work with an insurance advisor to ensure that you are provided with unbiased advice.
4. Not getting adequate coverage
You cannot narrow down your insurance options without finding out how much coverage is offered. Many people tend to go for a policy with a lower cover to save on premiums, but when an emergency strikes, it can lead to financial loss.
5. Not updating insurance policy about changes in life
If you’ve changed your job or your income has changed, you need to keep your insurance company informed so that they can update your policy. You want an insurance policy that can accommodate all your needs. As your life changes, your insurance needs will, too. Therefore it’s important to keep your insurance advisor in the loop.
6. Not reviewing policy annually
While it’s essential to review your policy before signing the contract, it’s just as important to review your insurance policies every year. This way, you’ll be notified of any changes in rules and regulations.
If you want to avoid these and other mistakes related to insurance, reach out to Paul’s Insurance. As a family-owned insurance agency in Brampton, ON, we can help you sieve through a range of insurance policies to find you one that best suits your needs. For the last decade, we have been providing the highest quality service at the lowest price available as we operate through major insurance companies.
We offer Life Insurance, Mortgage Insurance, Home Insurance, Business and Employee Benefits, Critical Illness Insurance, Disability Insurance, and other insurance policies to clients across Guelph, Cambridge, Kitchener, Waterloo, Brampton, Mississauga, Toronto, Milton, Brantford, Vaughan, Ajax, Pickering, Windsor, London and the Greater Toronto Area.