Taking out any type of insurance is a costly decision but usually one that is warranted. Whether you are taking out life insurance, travel insurance or car insurance there are certain questions that you should ask before signing on the dotted line. An insurance policy is a contract and you want to make certain that you are getting what you asked for, are covered for all the things you want, and won’t be surprised with any additional costs or complications when it’s time to pay out or close the policy.
Is the company licensed to practice in the state, how long have they held their license for and is the agent also covered under this license?
Unfortunately not all insurers practice lawfully or ethically. There have been a number of cases where people have taken out insurance policies only to discover that they were being scammed from the word go. Don’t be fooled into thinking it can’t happen to you because it can happen to anyone. Make sure your insurance company and agent can provide proof of their license. If they are hesitant than there’s a high chance that they are dodgy and that’s your warning sign to look elsewhere.
Have you provided me with all my insurance options?
Some insurance agents only give the customer that is the most benefit to their own pockets as they earn a commission from each insurance sale. Make sure that you have been presented with all the options before signing on the dotted line. You might have gotten a good deal but if the insurer hasn’t provided you with all your options than you can’t be certain that you have made the best choice. You are the customer and you have a right to be presented with all the offers available. Don’t be conned into believing that ‘this is absolutely the best option’, make an educated decision yourself. If in doubt ask more questions, talk to other customers who are also insured with the same insurer and check out forums on the Internet.
Can I cancel my insurance policy at any time with no added costs?
You want an exit clause that allows you to cancel your existing policy if need be regardless of your reasons without having to worry about added fees and charges or penalties. You might no longer need your insurance or may have found a better option with a different company. It’s better to be aware of any extra costs from the beginning.
These are just some of the things that you should ask your insurer before signing on the dotted line to protect yourself. Insurance is important, it’s costly and it should work for you not against you. Ask up front and you won’t be surprised later on.