Monday, September 3, 2018

4 mistakes to avoid while buying insurance. -Financially Pro [ENGLISH]

95% of people in India are underinsured

Are you one of them?
Do you want to be in 5%?
Didn't buy insurance still and want to be fully insured?
All doubt solved here...

You should buy insurance even before investing your money.
It is for protection for you and your family.
Still 95% people don't understand about it and stay underinsured.
So, what are the reasons people stay underinsured or make mistake while buying insurance?

So, let's discuss mistakes to avoid while buying insurance and if you did it already improve it:

Buying insurance as an Investment 

Many agents suggest to buy insurance as an investment product.
Although agents are ethical and won't suggest wrong product but some do.
So, remember that insurance is for protection and not for investment.

Agents suggest insurance as investment because commission. 
If you buy from them
For 1st year he would get 30% to 40% of your first premium.
From 2nd year he would get 10% to 15% every year till you pay premium.
So, don't buy insurance as investment product.
Agent will suggest but you should be aware and have some basic knowledge regarding insurance.

Buying insurance for tax saving

Many times people buy insurance when march ending is near and to save tax.
Tax saving by insurance is complementary

So, don't buy insurance just for tax saving purpose it is for protection only.

Buying random insurance

May times it happens that we buy insurance which agent suggest. We don't use our brain to understand whether it is right kind for me or not.
So, firstly calculate right kind of insurance for your self considering your debt, yearly expenses.

Not reading terms and condition

While buying insurance many people just know that this much amount needs to be paid as premium and this much amount is maturity.
If you ask them other questions like whether they can change plan or shift to other insurer, they'll be blank.
So, avoid this mistake and read terms and conditions thoroughly.
Ask as many question you can ask to agent.

If you too made this mistake, take your policy and read it properly again.

Do share this post made with love❤
with your loved one so that they avoid this mistakes before buying insurance.

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