What are some of the Tips to Consider while Buying an Insurance Cover?: Part2: 6th July, 2022 - Wed
Channel: Unicorp Insurance Information Institute: UI³
Date: 2022-08-30

Unicorp Insurance Information Institute: UI³

What are some of the Tips to Consider while Buying an Insurance Cover?: Part2:
Insurance has a critical role to play in the development and economy of a Nation.
An Insurance Market:
$ An insurance market can be compared with a supermarket into which a customer walks in and is instantly faced with the challenge of making a shopping decision from the wide collection of products.
$ The challenge is that the products are similar to one another with others being more expensive and others possessing unique features. 
$ At the end of the day, as a buyer, you must make a choice. 
$ The supermarket example is used here to depict tough choices buyers face when seeking to buy insurance products within their strict budgetary limits.

Challenges facing Providers of Insurance Products -
$ Just like Buyers, Insurance Products Providers also face challenges of availing full details about the features of their products. 
$ This is a challenge because providing all the details may be bulky and expensive and at times the buyer may not find time to read conclusively.
$ UI³ working closely with other Sector Players and IRA to shed light on what consumers need to know in order to make informed choices when buying  insurance products. 
$ This broadcast aims at overcoming cases of under-insuring or over-insuring and aims at reducing problems that arise when making a claim. 

Tips that You Need to Know…
$ Here are Tips to consider when buying insurance for medical, life, household, businesses, motor vehicles, education etc. –

1. Set Your Priorities Right: 
 Before buying insurance as a customer, You must set your priorities right by listing all valuables you feel are at risk. 
 You should prioritize your valuables in order of their importance, value and the extent to which they are exposed to loss. 
 Since one cannot insure all valuables, this process will help you as a buyer identify what to insure and at what cost.

2. Look Out for Miss-Selling: 
 Look at all protection products you already possess whether provided by yourself, your employer, society or group.
 This is to help you avoid miss-selling of insurance i.e. if you already have a policy with personal accident (PA) or if your employer has a group life cover and a medical scheme that is sufficient, then you do not need to buy another.

3. Make the Right Choice by Comparison:
 Obtain and compare various insurance products from various insurance companies and make the right choices regarding the benefits provided by each, the terms and conditions, exclusions and costs. They are NOT always a Straight Jacket!
 Remember the cost of insurance should not be the only guiding factor.
 Understand the financial stability and soundness of the insurer under consideration.

4. Use of Intermediaries: 
 Prospecting for a suitable insurance cover can be challenging, especially, when you do not have experience or where the cover is complicated. 
 While you can buy simple products directly from the insurer, you may also need to seek the services of licensed insurance agents or brokers or medical service providers.

5. Completing the Proposal Form: 
 Completion of the form is the beginning of buying insurance. 
 Ensure you provide correct information about the risks you intend to insure. 
 Providing incorrect information or withholding information from questions raised in the proposal form is the beginning of problems with an insurance policy.
 Fill in the form yourself, read and understand it before signing. 
 Do not leave it to be completed by the agent. But if the Agent has to do it for you, be there!

6. Read and Understand the Policy before Signing: 
 When you are finally issued with a policy, check that all what was contained in the proposal form is contained in the policy. 
 There is generally a 30-day waiting period, for life policies, within which you are required to read, understand and sign the policy. 
 Enquire and obtain sufficient facts about the policy within this period. 
 Signing the policy and then cancelling after this period and before three years will make you lose all premiums so far paid. 

7. Keep All Records Pertaining to the Policy: 
 Ask for all receipts when you pay for your policy. 
 Keep all documents including receipts, policy documents, all correspondence and other documents in a safe place.

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Email: unicorpcapitalinsurance@gmail.com;      
             unicorpcapitalv@mail.com 

Yours Truly, 

H.E. Patrick O. Kokonya 
Unicorp Insurance Information Institute {Unicorp Capital Insurance Agency} - Public Policy & Administration Analyst/ National RRI Coach
{President, Unicorp Capital Group}