If you are a newbie to the insurance game and are planning to purchase a basic insurance policy, then don’t fall for the following mistakes:
Not Customizing Your Insurance Policy
Basic insurance coverage does not require a high premium, but you have to look at the bigger picture. You might be alone right now, but your current situation is not going to remain the same. Once you have kids, you will have to think about your whole family. There’s life insurance for children, burial insurance, car insurance, liability insurance, and more. Of course, you don’t have to buy them all.
The biggest of all is home insurance, which protects you from vandals, thefts, fires, and in a few cases, natural disasters too. Medical bills can pile up high and before you know it, you will be under a huge debt.
Catastrophic Health Insurance
If you can’t afford the basic health insurance plan, then you might qualify for catastrophic health insurance. This policy offers you the following benefits:
- Ambulatory patient services
- Pregnancy and maternity care
- Emergency services
- Mental health care
- Rehabilitative services
- Substance abuse treatment
- Laboratory services
- Pediatric services
- Preventive/wellness services
- Three primary care visits every year
Note: some plans might even offer vision or dental coverage.
Short-Term Disability Insurance
Short-term disability insurance is mostly provided by your employer. However, if you are not given the option, you can purchase it on your own. Basically, this policy gives employees the benefit of receiving a certain portion of their salary after an injury that did not take place at work. The policy comes into effect when the employee has used up his sick leaves.
Over Insuring Yourself
Maybe you went a little overboard in insuring yourself but how do you find out about this? Once you have decided to get a basic insurance policy, the next thing you should do is get in touch with an insurance agent. He will help you assess your needs, so that you can buy the right coverage. Most people over insure themselves when it comes to liability insurance. You don’t need to pay high premiums for a policy that will seldom come in use. In fact, avoid buying this insurance policy until you have a couple of major assets in your name.
Under Insuring Yourself
Just like you shouldn’t over insure yourself, the same way you need to make sure that you are not under insured. It’s possible that when the time coves to make a claim, there’s not enough coverage for the expenses you spent out of your pocket. For example, when it comes to car insurance, take into account your car’s model and how much does the repairs cost. Are the car parts expensive? Take another example: will your life insurance cover illnesses such as cancer or Alzheimer’s disease?
It might seem a bit morbid to think about such what-if scenarios but at least you will be able to live your life stress free. Moreover, your family will not be financially crippled once you have passed away.
Buying the Wrong Insurance
Apart from your basic insurance policy, what other policies are you planning to buy? Just because a colleague told you he bought so and so policy, doesn’t mean that you also need to have it. As said earlier, an insurance agent will be able to tell you accurately which policies you need according to your lifestyle and finances. Understand each and every policy before deciding to buy it. This will allow you to make an informed decision and moreover, you will be able to pay higher premiums for the expensive policies.
Not Shopping Around Before Buying a Policy
Perhaps, this is one of the biggest insurance mistakes that a newbie makes. Some companies might be offering more benefits at a lower premium, which is great for a beginner. You should definitely opt for these companies but not before you have done your homework.
You can always re-evaluate your needs in the future and change or modify the policy. If you get a promotion or welcome a new member into the house, then you should talk with your insurance agent about how to further make the policy fit the change in your lifestyle.
Some carriers partner up with colleges and businesses to offer discounts to students and employees. If your kid is heading off to college next year, the same one which you went to, then find out if he is eligible for an insurance discount. Still, research on the insurance agency thoroughly, read reviews written on them, talk to current policy holders if you can and then make your decision.
It can be a little overwhelming for a person to buy an insurance policy for the first time. With so many different policies now available in the market, there’s more room for insurance mistakes.
If you feel the need to talk to a qualified insurance agent, then visit Pawson. The company provides different types of insurance policies and helps people assess their needs and wants based on their lifestyle. To know more about their policies, contact them at 203-481-8898.
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Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. Statements on this website as to policies and coverages provide general information only. This information is not an offer to sell insurance.