A policy is the proof that you are insured. It is a contract between the insured person and the insurance company.
Even for motor insurance, the sticker on your windscreen is only proof that you have insurance. The insurance policy is the contract.
- Choosing the right policy
We all have different reasons for buying insurance and it is important to first identify the reason. Thereafter, selecting the right policy to address the need becomes easier.
There is a wide range of insurance products offered by insurance companies each with different features, terms and conditions and costs.
It is important to shop around and do some research to find out which products meets your needs and budget.
Make sure you read and understand the terms and conditions and ask questions where you are not sure
Below are some things to consider as you select the insurance policy;
- What do I want to insure and why?
- How do I want to pay premiums? Weekly, monthly, quarterly, annually?
- Do I want to specify the sum insured?
- What inclusions do I need?
- What other products or services can I include in my cover as benefits?
- What features can I leave out without compromising cover?
With the answers to these questions, you can select a policy that works for you. Then engage the insurance company, agent or broker. You will be required to fill in forms providing details about yourself and what you want to insure. Be honest as you provide the information so that the insurer can correctly assess the risk and charge the correct premium (do not undervalue or overvalue what is to be insured this presents challenges when a claim arises).