What does it mean to be human? People will have different answers and takes on this one, but if you think about it, the one thing that all humans share is feelings of worry about the unknown. We obviously worry about different things, but that concern about the future is just a part of human existence. Few things can help keep that persistent anxiety at bay, like taking out insurance policies. It is something to help you sleep better at night since you know that if any unexpected disaster happens, you are covered and will be able to mitigate the damage. Unfortunately, even with an insurance policy, the process isn’t always straightforward. There is much that insurance agents don’t tell you, even if they want to.
You Might Not Need This Policy
This is obviously the most common sentence that no insurance agent would tell you. Take life insurance, for example. It is a very important policy if you have a family and you are the main breadwinner because it covers them financially if you die. But what if you don’t have any dependents? In that case, it is probably a waste of money, because no one stands to benefit from the policy if you die –– unless you’ve chosen a charity or something. On the other hand, if you are well-to-do enough and your loved ones can be covered through your wealth if you pass away, then you also don’t need a life insurance policy.
You Can Easily Become One
A lot of people seem to think that insurance agents have to be Ivy League graduates or geniuses, which isn’t really the case. Any person can be an insurance agent if they do all the right things, and you don’t even need particular graduate degrees. The key to becoming one is getting licensing from accredited institutions first. After getting your insurance license, you can take more tests to qualify for certain certifications that allow you to deal with more intricate policies, which also ensures a better career path. In short, becoming an insurance agent is pretty easy if you have it in you.
You Can Pay Less If You Don’t Smoke
Sounds a bit surprising, doesn’t it? Believe it or not, non-smokers pay less on insurance policies. You’re probably thinking this applies to life insurance policies, and it does make sense, but that’s not the only one. Non-smokers also get discounts on car and home insurance, and several other types as well. Just call your company and ask about it –– discounts can go as high as 15%, so it’s definitely worth it!
Credit Score Matters
Having a bad credit score complicates things for you, significantly, while trying to take out loans. But what most people don’t know is the fact that it does the same with insurance policies. Companies take your score into consideration, and you will most likely pay higher premiums. Yes, like with loan interest rates, the worse your score is, the higher your insurance premiums will be.
Low Premiums Are Too Good to be True
In the insurance world, if you get a quote that sounds too good to be true, then it probably is. Sometimes, the insurance agent would offer you very low premiums, but you should stop to consider why they’re so low, and what benefits you get with such rates. Chances are the coverage limit will be pretty poor, and the deductibles will be high. So, make sure you compare policy benefits and not just the rates when you’re choosing a plan.
Premiums Won’t Drop
If the insurance agent implies that insurance premiums will drop over the years, you should take that with a grain of salt. If anything, they will increase with time. Premiums don’t really drop, and you need to know that early on so you wouldn’t be surprised.
There’s Probably More to Your Home Insurance Policy
Home insurance policies usually entail a lot more than you think, but most people don’t know that because they rarely read the fine print. For instance, some policies contain coverage for volcanic ash in case a volcano erupts near you. Others offer compensation if your house was damaged due to a flood. These are just examples, but there is so much more included, so you need to find out the limitations of your coverage.
If there is one thing that you have to do with your insurance policies, it is to carefully go through them. It doesn’t matter if it is an auto, life, homeowner’s, or health insurance. Read everything included in your plan so you can be certain that you will have coverage if anything happens. Most people take out insurance policies with a certain contingency in mind against a particular problem, but you’d be surprised by the unexpected things that happen, and you need to be prepared for those, too.