What is insurance?
We generally buy in insurance to shield or cover us against certain unexpected financial loss which can result from personal injury to damage to properties or personal belongings. Some most common sorts of insurance coverage include personal health insurance, motor insurance, home insurance, travel insurance and so on.
Buying insurance
We usually need to fill out an application form when we buy an insurance policy. This is called as a ‘proposal form’ that you can be completed as face-to-face or ‘statement of facts’ on the internet or over the phone. You need to answer the insurance provider’s questions, or those of the person who sells you insurance, straightforwardly. You should disclose all data which may have an effect upon their decision to cover you, and the amount of premium for the policy. This is very essential as your insurance provider may reject to make payment on a future claim if you retain any information. Check the data you have given in insurance proposal form or statement of facts before you sign, to ensure it is correct. This is very significant if an agent or broker has filled it on your behalf, or the transaction was completed over the phone or on the web. You can also get the copy of your application.
What information your insurer must give?
Insurance brokers and companies selling most kinds of insurance must give you information about the service they are generally providing, and a summary document containing some key facts about the insurance policy they want to sell you. The summary documents must include ‘keyfacts’ logo, and must say everything about the policy and in insurance company. This must include major advantages and features of the policy, any unusual or significant exclusions in insurance policy, the amount of time the policy will last and available cancellation rights to the insured. With this information, it becomes easier to compare policies and plans from a lot of insurance companies. Companies sell travel insurance as a part of a holiday package, and those firms that sell expanded warranties for electrical objects don’t have to provide you this information.
The insurance policy
The insurance policy generally will include the terms of the contract with the insurer. This will contain what is called as a ‘schedule’, which has your private information on it, and the details of your selected policy. You have the authority to get a full copy of your policy. It is significant to ensure that the data in your insurance plan is right, and you should check it very cautiously as and when you receive it. In any cases, if you have not got your written policy details one month after beginning making payments, contact your insurance company and ask them to send you your documents. The money you pay for plan is known as ‘premium’, which can either be paid to insurance company in one lump sum or in installments. Keep these things in mind when you buy in insurance next time.
