10 Problems You Face While Selecting a Good Insurance Policy

Good Insurance Policy

Have you ever dreamt of a life that is free of risks and problems especially those related to health? We live in a very mechanical world where we do everything with the help of machines, from manufacturing eatables to making cars; from writing a letter to delivering that letter, all are full of risk. Do you think there is any way out of this problem? Well, hope is still there. One just has to pay for using this facility called Insurance. Don’t you think to live life longer you require to insure it? And what better way than having Health Insurance? Before you go ahead and purchase a life insurance policy, stay aware of a few problems that may come your way.

 The Problems While Selecting a Good Insurance Policy

  1. Unfair Insurance Claims: Some of the insurance companies try reducing the insured amount and some even go to the extent of avoiding the payment altogether. So, what is the way out? In such a case, it is for the person buying the insurance to look into the regulations and laws that can help him/her save the trouble caused by such bad behaviour.
  2. Missed Payments: Are you surprised about having your policy cancelled without any notification when you missed a payment? Under no circumstances can an insurance company do so. It would not be in the interest of both parties. The most harm such companies can do is that they may refuse to pay your policy on a maturing date taking the missed payments as an excuse. This would land the insuring company in a bad word of mouth and you will be liable to file a lawsuit against the insurers.
  3. Policy Cancellation: Do you think an insurance company can cancel your policy once you have purchased the policy and even started paying the premium?  Strange, but true, the answer is a Yes and a No. A life insurance company can cancel your insurance in quite a few ways. These include detection of fraud related to you or any wrong information you might have provided to the insuring company. The insurance company may also reserve the right to not renew the policy on its maturing. This may be due to some racial or gender factors creeping in. Certain states insist that the company must notify the client before maturity about renewing the policy. Didn’t they do it in your case? They could stand trial for not doing so.
  4. Divorce: Are you filing for a divorce? Are you buying a new life insurance policy when your divorce is due? You might want to think again. Are you living in a state in the US that allows insurance companies to withhold the policy amount in case of a divorce?  If yes then you need to specify a new beneficiary before the policy matures. Otherwise, the beneficiary or the estate could get the policy amount.
  5. Specifying My Beneficiaries in a Will:  Are you serious? I would recommend you never do it. Changing a will is not so easy. Secondly, you can do so by specifying the beneficiaries in the insurance company’s papers. Are you aware this could lead you to a lawsuit?
  6. The Insurance Company Holds Money Improperly: Is the insurance company duping you by withholding your money for no apparent reason? The states give you all the right to consult a lawyer well versed with the rules and regulations the insurance companies have to follow. Such a lawyer will help you know the way out and what you can claim from the company. Besides, you might also be eligible for compensation from the insurance company.
  7. You named only one beneficiary: Don’t you think this is a serious problem you just happened to overlook? Certainly, it is. in case the beneficiary dies before you, the policy amount is transferred to the estate and not you. You end up with nothing on your hands when you require it the most.
  8. Not Comparing Quotes: Did you think you will be given the best and cheapest policy? You need to reconsider. How many quotes did you compare before buying a policy from some XYZ company? None. Compare quotes from different companies before reaching a decision. Don’t know how to do it? Leave it to some agent who works with multiple insurance companies. He might land you up some good insurance.
  9. It Doesn’t Make Any Sense: That is what the middle-class is. Throughout your life, how many times have you thought that buying life insurance was again? Some people may not need it, but others do. You get dividends for an entire lifetime, and life insurance is an asset where the cash balance can only grow. If you cancel, you get your money back and can even afford loans.
  10. Long Term Planning: Everyone might not be inclined to buy life insurance for a whole lifetime. However, buying life insurance for a period long enough that at least covers your working years could be an advantage. Later in life, as age catches up with you, it will not be possible to earn these advantages. The longer the period, the shorter per month premium you have to pay.

What to Do?

So many problems are there in getting single life insurance. Is it ok then if I remain uninsured? Of course, you don’t pay a tax or a fine if you are uninsured but what about the risks? Let me list out a few of the risks of staying uninsured.

  1. If you are admitted to a hospital, the charges are quite unbearable. These would have been covered if you had health insurance.
  2. Every state has its own rules in the US. Even after the repeal of 2019 at the federal level, some states have their health insurance policies. Is your state one of them? If yes, you need to buy it.
  3. A survey stated that those who did not insure themselves ran the risk of worsening health every time they faced a problem. Such people account for 25% of the populace.

We are a Call Away

With several insurance companies coming forward when you want to purchase insurance, consider the above points before falling to one of them. Most Insurance companies cover insurance from motor to property and mortgage, life insurance, pensions to living reward, and even marine insurance.

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