Friday, January 26, 2007

posted by kanth @ 12:49 AM permanent link   | Post a Comment | 0 comments  

Many people buy as many life insurance policies, which fits in their budgets and assume they're covered for every possible issue that may come up further. But that's not necessarily always the case. If you don't read your policy carefully before you sign on the line, you might also end up being disappointed at the end.

You need to ask why the exclusions are their in your policy. Rather than worrying about whether your life insurance company would try to rip you off when you make an insurance claim, ask about the exclusions about which you're concerned. There are surely reasons for the exclusions. If the policy will guard against every risk, the price of the policy will be certainly outrageous. Also think of it this way: exclusions keep you from buying insurance coverage you don't need.

If there's part of your policy that really doesn't make sense, ask about it. Sometimes policies are presented very oddly and are difficult to read. Make sure you ask your agent what are the particular clause means. If it still doesn't make sense to you, remember that courts normally look favorably toward the consumer's side of vague insurance contracts.

Ask for contract in writing. If there's something about your insurance policy that is unclear you then ask the company you're buying it from to put a verbal clause in writing. Anyhow having it in writing gives you peace of mind and makes sure there is no question about what is covered and what is not.

You need to know when your policy expires. If you are purchasing a term policy, note exactly when your coverage begins and ends. Many renewable term policies offer a grace period (typically 31 days) as well after the expiration date if the next year's insurance premium is not paid on time. But some policies are actually not clear on this point. Make sure yours is.

Find out your premium rate. Some companies also have variable rates for insurance premiums. Make sure your policy outlines exactly how much you'll be expecting to pay and when those payments would be due. If the policy includes variable rates, make sure you note how much you'll owe.

Finally, know what you should to do to make a claim on your policy. Make sure it's clearly written on your policy that you contact and under what time guidelines you're should to act on. Also, become aware of what options the insurance policy company has when you make a claim. Learn how long the company has to respond to your claim.

But don't lie on during application process or policy! Your entire contract could be voided, if you knowingly hide information about yourself and your insurance coverage situation. Misrepresenting any facts in order to obtain insurance is a pure fraudulent. You may not lie on your application, and you may not lie when filing an insurance claim. This can lead to serious criminal claims against you.