The Wise Buy Insurance: The Not so Wise Buy Policies

We all know the local insurance agent whom we try and avoid. His sole aim in life is to tell you of a new “scheme” that will bring us eternal happiness. We avoid him or run away from him or do not pick up his calls, yet, somehow, we do end up buying from him. The primary weapon in his arsenal is persistence. You will have never encountered another human being who can take rejection so well and still keep up the effort. He is unfazed by the word “no”, will wait patiently for times to change and still pursue his profession with the enthusiasm of the convert.

His reasons are many: the latest contest, his target achievements, or the upcoming tax season. The net result: we end up with several insurance policies that we struggle to manage. Our portfolio will have small policies, unnecessary policies, lapsed policies and unknown policies. A large proportion amongst us does not even know what is in our portfolio. This is not economic protection but favours done. We have not purchased insurance, we have purchased policies.

What is the difference? Insurance is the creation of an asset that will substitute economic value. The purchase of insurance is a reasoned out process based on need, right fit and price. Insurance is valuable only if it can be encashed at the time of need. Imagine buying from a company that rejects a large percentage of claims on flimsy reasons. Not only are paid premiums wasted, the objective of the purchase is defeated. Most of us are under insured, or have purchased the wrong type of policy.

Truth be told, very little can be done about what has already happened. In most cases surrender of older policies will produce insignificant returns. General insurance policies like health insurance or motor insurance will fetch you nothing on surrender. Our recommendation is that for your life insurance requirements, make a review and ensure adequate coverage. The product you buy should be the one that gives you the greatest confidence regarding reliability of claim payment. For your Health, Motor and Home protection requirements review your portfolio today and take charge. Health policies are portable and can be changed without trouble. Motor policies protect your No-Claim-Bonus (NCB).

Before you start changing your portfolio, compare on www.policylitmus.com to find out the product that fits you the best. Choose not only on price but on claims performance  and customer satisfaction parameters without surrendering your privacy.