A great many people purchase life insurance simply because they want to ensure that the loved ones they are leaving behind are going to be financially secure. A lot of people are now buying life insurance instead of mortgage insurance to be sure that their family will be less financially strained in the event one of them dies.
The family member while still suffering from the loss of their loved one at least take comfort in knowing that they have been financially looked after. In some cases this is a false reality, which hits hard when they go to cash in on the policy and find they have been denied.
It all comes down to the fine print. With the type of life styles that we live, we just do not take the time to read what pertains to the signing on the dotted line. Then when we do it can be so confusing that we simply don’t understand it.
It comes down to when buying life insurance…buyer beware! It doesn’t just pertain to life insurance either. It can relate to all types of insurance.
One of common mistakes when buying insurance is those that say “No medical questions asked? So many people take this at face value. Extreme caution has to be put into place on the buyer’s part here. The advertising hook may say “no questions asked”, and even the actual application for this type of coverage may not contain any medical questions. Where the problem comes in is when the company sends you the whole policy that you are agreeing to. Look this over very carefully, because somewhere within it, it will probably have a clause that coverage will be exempt if any prior medical illnesses were known or any existed by the individual being insured. This is the insurance company’s ticked out of having to pay in the event of your death.
This type of information could arrive in the form of a pamphlet that comes from your insurance company when they send you your confirmation that you have been accepted. You may note on your policy confirmation that you have to sign that it says that you acknowledged that you have received and read the accompanying pamphlet which makes up part of the legal agreement of your policy coverage.
This is just one of many examples that show how you cannot just assume that your life insurance or any insurance you have is going to provide you or your family with the financial comfort that you think you are paying for with those monthly premiums.
It isn’t just those that are buying personal insurance that have to be wary. Business owners have to be just as astute about buying the different types of business insurance, to ensure they are being covered for what they are looking for.
