Transferring risk by buying insurance products is part of the management of personal finance. If you already have dependents, having life insurance is something that should be fulfilled.
Likewise, with health insurance. By having insurance, the risks that we usually deal in everyday life and can affect financial conditions can be better managed.
If you intend to buy insurance as one of the steps in financial risk management, knowing that the insurance product you want to buy is mandatory.
Included here are considering and understanding the contents of the policy or insurance contract that you purchased.
This principle is even ignored. Not yet, insurance customers have been reluctant to read the contents of the policy only because the language style of the insurance contract is considered complicated by heavy legal language.
However, to avoid things that are difficult later on, you should read the policy carefully and thoroughly. The following are easy tips for reading and studying insurance policies:
1. Type of Insurance Coverage
One of the most important parts of the policy that you must understand is the type of insurance coverage you buy. For example, if you buy health insurance, you must know what types of diseases are covered by the insurance product. Are listed clearly in the policy.
While if you buy loss insurance like a car, the type of coverage that is usually offered is a total loss only (TLO) or comprehensive (comprehensive protection). If you buy a TLO, then insurance only compensates for losses when your vehicle is lost. Whereas if there are abrasions or accidents, the risk is not borne.
2. Definition of Coverage
You already know what type of coverage is covered by the insurance. The next step is to study the definition of coverage referred to in the insurance policy. As an illustration, for health insurance products listed the type of coverage is for the risk of cancer.
Well, make sure you clarify, what kind of coverage is obtained for the risk of cancer? Will insurance covers for cancer in the early stages? Or just bears in the final stage?
3. Exception Clause
Also learning the important part of the insurance policy, which is the rule or condition that cancels coverage. Usually called the exclusion clause. This chapter is usually contained in the special provisions chapter contained in the policy.
The contents are usually standard, namely, coverage will be canceled if misused, there are crime, intentional, crime or unlawful actions carried out by the customer.
For example, life insurance claims will not be liquid if the insured dies due to suicide (intentional element), or killed by the heir (crime), and so forth.
By studying the three most important parts of the policy or insurance contract, you can be more observant about the insurance products that you want to buy. Don't hesitate to ask for a policy contract before officially signing the insurance contract.
Don't hesitate to ask details to the insurance company or agent about the all-around policy that you don't understand. Researching at the beginning can prevent you from problems later on when you need to make an insurance claim.
After reading these tips, hopefully, you will not hesitate to have insurance according to your needs anymore. Happy insurance.
Likewise, with health insurance. By having insurance, the risks that we usually deal in everyday life and can affect financial conditions can be better managed.
If you intend to buy insurance as one of the steps in financial risk management, knowing that the insurance product you want to buy is mandatory.
Included here are considering and understanding the contents of the policy or insurance contract that you purchased.
This principle is even ignored. Not yet, insurance customers have been reluctant to read the contents of the policy only because the language style of the insurance contract is considered complicated by heavy legal language.
However, to avoid things that are difficult later on, you should read the policy carefully and thoroughly. The following are easy tips for reading and studying insurance policies:
1. Type of Insurance Coverage
One of the most important parts of the policy that you must understand is the type of insurance coverage you buy. For example, if you buy health insurance, you must know what types of diseases are covered by the insurance product. Are listed clearly in the policy.
While if you buy loss insurance like a car, the type of coverage that is usually offered is a total loss only (TLO) or comprehensive (comprehensive protection). If you buy a TLO, then insurance only compensates for losses when your vehicle is lost. Whereas if there are abrasions or accidents, the risk is not borne.
2. Definition of Coverage
You already know what type of coverage is covered by the insurance. The next step is to study the definition of coverage referred to in the insurance policy. As an illustration, for health insurance products listed the type of coverage is for the risk of cancer.
Well, make sure you clarify, what kind of coverage is obtained for the risk of cancer? Will insurance covers for cancer in the early stages? Or just bears in the final stage?
3. Exception Clause
Also learning the important part of the insurance policy, which is the rule or condition that cancels coverage. Usually called the exclusion clause. This chapter is usually contained in the special provisions chapter contained in the policy.
The contents are usually standard, namely, coverage will be canceled if misused, there are crime, intentional, crime or unlawful actions carried out by the customer.
For example, life insurance claims will not be liquid if the insured dies due to suicide (intentional element), or killed by the heir (crime), and so forth.
By studying the three most important parts of the policy or insurance contract, you can be more observant about the insurance products that you want to buy. Don't hesitate to ask for a policy contract before officially signing the insurance contract.
Don't hesitate to ask details to the insurance company or agent about the all-around policy that you don't understand. Researching at the beginning can prevent you from problems later on when you need to make an insurance claim.
After reading these tips, hopefully, you will not hesitate to have insurance according to your needs anymore. Happy insurance.
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