5 Mistakes People Make With Insurance Planning – What to Avoid

There are many added benefits to having insurance. Aside from the fact that it provides you with a specific type of security and stability, there are many varieties of insurance — whether it be health, life and many more. Insurance wants to give you the benefit of having a cushion in circumstances such as a fire accident or damaging your vehicle. This is the main reason as to why insurance exists. Accidents are beyond are control and insurance acts as a backup plan for you. With this being said, there are certain circumstances in which we cannot control and that’s the exact purpose of why insurance exists. However, with the many benefits that insurance can provide you with, there are also mistakes that we should be wary of making. The following are 5 mistakes people make with insurance planning and things you should avoid.

5 Mistakes People Make With Insurance Planning

Some of the mistakes that people make with insurance planning include working with captive agents, overlooking your health, skipping annual reviews and more.

1. Avoid Captive Agents

Make sure that you choose an agent that isn’t restricted in selling you only their in

surance company, but gives you the liberty of choosing other insurance companies as well. This is the kind of agent you need because this means they value the insurance you aspire for. A good agent will listen to your needs and wants with your insurance, and not just simply focus on marketing their own insurance to you.

2. Overlooking Your Health

Underwriters are generally in charge of deciding on the insurance to give you. If you overlook your health, your insurance could cost you more than you expected in the long run. Make sure that you check your health history and medical records before choosing your insurance package. The same applies for physicians who overlook disability insurance for themselves because they think that they don’t need it or may not even know what it is. Or there may be cases where they know that they do need it, but don’t know how much of it they need and if it’ll cover things such as elective surgery and more.

3. Skipping Annual Reviews

It’s typically a recommended idea to get insurance when you’re young so that the premium isn’t that high and your annual review basically states any changes that have been made regarding your status, work, health and such. If you skip this part, you could skip saving money in the process. 

4. Paying Too Much

A costly insurance plan doesn’t guarantee that it’s the right insurance for you. Choose the right people to consult with the insurance that you want, including the kind of benefits you want in the process. With the right team, they’ll help you choose the right package, including necessary discounts. You can also avoid paying too much in premiums if you know when the Medicare benefit period is and know how to not miss it. 

5. Avoid Being a Transaction

If you have the right people working on your Insurance, this avoids the hassle on your side with everything involving your insurance such as policy requirements. It’s your insurance so you get to make the calls in what you want for your insurance, not the other way around. Avoid letting people, especially agents, persuade you into getting an insurance package you don’t even need in the first place.

Bottom Line

Mentioned in this article were the 5 mistakes people make with insurance planning. Hence, these are the 5 things that you should always put into consideration when choosing the insurance package for you. It’s always a good idea to go for insurance. However, as with anything, you have to take precautionary measures by avoiding these mistakes. Otherwise, you might wind up with a higher premium which could cost you unnecessary money.