Insurance mean agreement between company and policy holder which is guarantee of recompense for the specified loan, illness, damage, and death in return for amount of determine premium.
In other words it provides security against risk which applies different types of situations. Main two types of insurance life insurance which covered several risks like illness, premature death, income during retirements as well and general insurance which covered the risks of home or property loss, car insurance, personal accident insurance, medical and health insurance, travel insurance.
Buying insurance but buying right insurance is not same many people buy insurance not for right purpose and without choosing a goal for the benefit. When insurance policy holders buy insurance they have done 5 common mistakes when buying insurance these mistakes are following.
Wrong priorities: many people done this mistake when buying insurance they choose wrong policy for wrong period of time and at the end of financial year. Plan must be according to need and merit.
Confusing insurance with investment: people are often discomfited to learn about their policies offers and very limited returns more important thing is that realize the purpose of insurance before buying a policy.
Choosing the cheapest policy: Another big common mistake done by the people when buy insurance policies they choose the plan with cheapest cost and amount.
Trusting the agents blindly: Agents always looking for sale in any way sometime they sell their policies with unfavorable way in other words if they are more and more honest then also you never trust blindly it is major mistake done by the people.
Not understanding the policy: It is also part of five common mistakes when buy insurance, it’s a major mistakes done by insurance policyholder they never get all terms and condition about policy which they are buying its create lot of problem when policy mature.