Life insurance becomes an important thing that must be prepared in your life. This product can provide a guarantee or protection benefit to your heirs or family if you die.
The sooner you apply for life insurance, the better. You can get an affordable premium amount. However, not just choosing a life insurance product. Policy purchases must be done carefully.
It is important for you to always pay close attention to insurance policies from the start. You must really understand and understand everything or the contents of the policy purchased. Do not get to it later, you actually experience problems, even losses just because of ignoring the information.
Here are some important points that you must read and understand well when buying a life insurance policy:
1. The right to read and study the contents of the policy
Insurance products are not something that is easy to understand, especially by ordinary people, maybe including you. Basically, insurance companies provide special time for policyholders to read and study the entire contents of their insurance policies for 14 days after the issuance of the policy.
During that time period, you can file an objection or cancel the proposed policy purchase. If canceled, you will receive a full refund.
Make sure you make good use of this time and study the contents of the policy in detail. This will prevent you from problems, even the risk of loss in the future.
2. Completeness of policy holder and insured data
The insurance policy is a legal document, so it is important to always ensure that all information in it is accurate, including the various data that you will include there. Incorrect data entry, be it name or date of birth, and others will be very risky to cause problems in the future.
Avoid filling in the data holder and the insured in the insurance policy that you buy. Fill in carefully. Don’t forget to check all the data repeatedly, so you can make sure that all columns are filled in correctly.
3. Protection benefits obtained
When buying insurance products, then you will get certain benefits from these products. All of this will be stated in the insurance policy and you must understand it well.
Some things related to insurance benefits that you need to look at the policy:
- The amount of coverage that will be received by the heirs, if at any time you run into risk.
- The insurance period provided by the insurance.
- The benefits of using a rider are added to your insurance.
- Room service that you can get, if you use a rider for additional life insurance.
- How to submit a claim and various provisions related to the submission of the claim (deadline, procedure, and others).
4. Insurance premium provisions
As an insurance user, you have the obligation to pay premiums. Things you should consider in insurance premiums, namely:
- The amount of premium to be paid, the method of payment, the currency used, and the payment period (monthly, semester or yearly).
- Provisions on late payment of premiums.
- Provisions related to policy recovery, if at any time your policy lapse (canceled) due to premiums in arrears.
5. Exclusion provisions
Not all risks are borne by the insurance company, because there are exclusion provisions for certain conditions that ultimately make insurance claims denied.
Make sure you understand all the provisions of these exceptions in the insurance policy well from the beginning, so you do not have to experience problems or problems in the future due to these conditions.
6. Discounted costs
Insurance also applies a number of fees for its users. You must understand all these costs well. There are many costs incurred in insurance, depending on the type of insurance itself, such as maintenance costs, basic insurance costs, monthly administrative costs, the cost of changes to the allocation of investment funds, the cost of managing investment funds, and others.