Tips to become your own insurance advisor

Tips to become your own insurance advisor

There was a time when buying insurance used to be a considerably complex and tedious task. People used to consider an insurance advisor, a specialist who can explain the ins and outs of every plan. However, with the explosion of information on the internet, users are well-equipped with all the knowledge that is needed to find the best plan. There are a variety of plans available and also all the information related to them. You can also use online tools for comparing income protection insurance, medical insurance, and other insurance plans. Today the power is in your hand to choose the right option and be your own advisor. The purchase of insurance is crucial to secure your future finances. Here are some points to ponder before you decide to buy a plan.

  • Make goal-based purchase

Sometimes people are confused about the basic goal of buying insurance. People think of it as an investment for saving or save tax. It is important to understand the primary objective of insurance is to provide financial protection under critical circumstances. Once you start looking for a plan that can accommodate your needs instead of the one that can save maximum tax, you are more likely to choose the right plan.

  • Assess your financial limitations

Before you invest in any insurance policy, you should review your financial condition meticulously. Paying attention to your current income and expenses, assessing and estimating your requirements in the future, considering different stages of life, etc. is important. Even considering your lifestyle can also make a difference in proper assessment of a policy and its longevity.

  • Study different policies

Once you have shortlisted some policies, study all of them in detail. The product disclosure statement has all the information you need to have about a plan. You should look for the points like inclusions, exclusions, premium payment options, options to change the beneficiary in general. Other information pertaining to a specific plan type should also be assessed.

  • Consider different providers

Often terms and conditions for a specific insurance plan differ from insurer to insurer. You should consider multiple quotes from different insurance providers to ensure that you get the best deals. It would help you find a policy with maximum benefits and minimum premium amount and other expenses.

  • Check customer services

You may need assistance from your insurance provider while buying the plan, paying the premiums, or for some other issues and grievances. You can also talk to the current clients of the insurer to know about their experience. This will give you an idea about how the insurer treat his clients and how promptly the grievances are addressed.

  • Pay attention to important details

Make sure that you pay attention to some major important aspects of the insurance plan you are picking. Ask yourself questions like how long you want to be covered by a plan, how much should be the sum assured, etc. It is generally advised to have a plan that assures a sum of 8 to 10 times your annual income. Also, pay attention to the claim settlement ratio of the company that signifies the number of claims settled by the insurer.

  • Take charge

Make sure that you own the selection and purchase process. Do not depend on anyone else, rather do all the researches by yourself. It will give you confidence in your choice and ensure the best selection.