Easy Tips to Learn Life Insurance Policies. Transferring risk by buying insurance products is part of personal financial management. If you already have dependents, having life insurance is something that should be fulfilled. Likewise with health insurance. By having insurance, the risks that we usually face in everyday life and can affect financial conditions, can be better managed. If you intend to buy insurance as a step in financial risk management, knowing the insurance product that you want to buy is mandatory. Included here is knowing and understanding the contents of the policy or insurance contract that you purchased. This principle is even neglected. Not yet insurance customers have been reluctant to read the contents of the policy just because the language of the insurance contract is considered complicated by heavy legal language. However, in order to avoid things that are difficult later on, you wajiib read the policy carefully and thoroughly.
One of the most important parts of the policy that you must understand is the type of insurance coverage you buy. For example, if you buy health insurance, then you must know what types of diseases are covered by the insurance product. Are clearly stated in the policy. While if you buy loss insurance such as a car, the type of insurance that is usually offered is total loss only (TLO) or comprehensive (comprehensive protection). If you buy a TLO, then insurance only compensates for losses when your vehicle is lost. Whereas if there is a blister or accident, the risk is not borne.
You already know what types of coverage are covered by the insurance. The next step is, learn the definition of coverage referred to in the insurance policy. As an illustration, for health insurance products, the type of coverage is for the risk of cancer. Now, make sure you clarify, what kind of coverage is obtained for the risk of cancer? Will insurance cover for cancer in the early stages? Or just bear in the final stage? Learn also the important parts of the insurance policy, namely the rules or conditions that cancel coverage. Usually called the exclusion clause. This chapter is usually contained in the special provisions chapter contained in the policy. The contents are usually standard, namely, coverage will be void if misuse, crime, intentionality, crime or unlawful act committed by the customer.