In both online and offline settings, purchasing insurance is a crucial decision that can have long-term impacts on your financial security and peace of mind. One of the most critical aspects of making an informed and beneficial insurance purchase is asking the right questions. Whether you are a first-time buyer, making changes to your existing policy, filing an insurance claim or renewing your policy, understanding the details of your insurance coverage is essential. Want to know the benefits of asking the right questions?
Understanding Insurance Coverage and Exclusions
One of the primary reasons for asking the right questions is to fully understand what your insurance policy covers and what it excludes. This knowledge is essential to avoid surprises when filing an insurance claim.
For example, consider Emeka, who recently bought car insurance online. He did not ask about exclusions in the policy and assumed that flood damage was covered. After his car was damaged in a flood, Emeka was shocked to learn that his policy did not include flood coverage. Had he asked specific questions about exclusions, he could have chosen a policy that offered the protection he needed. This is one of the biggest nightmares of an average insurance buyer in Nigeria.
Comparing Different Insurance Policies
Insurance products can vary significantly between providers, and asking the right questions allows buyers to compare different policies effectively. By doing so, you can identify the best value for your money.
For instance, Ayodeji, an SME business owner, was looking to purchase health insurance (HMO policy) for her employees. By asking various providers detailed questions about premiums, free cover limits, coverage limits, and additional benefits, she was able to compare options comprehensively. She discovered that one HMO provider offered wellness programs and preventive care services at no extra cost, which was not evident from the basic policy descriptions. This information helped her choose a policy that provided the most benefits to her employees.
Clarifying Insurance Terms and Conditions
Insurance policies are often filled with a lot of technical jargons and complex terms that can be confusing. Asking questions helps to clarify these terms and ensures that you fully understand your policy.
Babatunde, purchased life insurance offline through an insurance agent. He asked the agent to explain terms like “cash surrender value,” “premium waiver,” and “beneficiary designation.” This clarification helped Tunde understand the financial implications of his policy and how it aligned with his long-term financial planning goals. Without asking these questions, Tunde might have misunderstood the policy features and missed out on potential benefits.
Ensure Adequate Insurance Coverage is provided
Asking the right questions is crucial to ensure that your insurance policy provides adequate coverage for your specific needs. This is particularly important for assets with unique and lately emerging risks.
Consider Amina, who owns a boutique in Lagos. When purchasing property insurance, she asked about coverage for business interruption, theft, and natural disasters. By doing so, she ensured that her policy provided comprehensive protection, including coverage for any potential income loss due to unforeseen events. This thorough approach meant that Amina’s business was better protected against a wide range of insurable risks.
Assessing Customer Service and Insurance Claims Process
The quality of customer service and the efficiency of the claims process are critical factors when choosing an insurance provider. Asking questions about these aspects can provide valuable insights into the insurer’s reliability and responsiveness.
For example, Samuel, who was buying health insurance online, asked prospective HMOs about their claims processing times, customer service availability, and support for emergency situations. He learned that one company offered a dedicated 24/7 helpline and had a reputation for quick claims settlements, which influenced his decision. By asking these questions, Samuel ensured that he would receive prompt assistance and support when needed.
Identifying Hidden Insurance Costs and Fees
Insurance policies can sometimes have hidden costs or fees that are not immediately apparent. Asking questions helps to uncover these potential expenses and avoid unexpected financial burdens.
For instance, Biyi, who was renewing her home insurance, asked her agent about any additional fees or charges associated with her policy. She discovered that there was a substantial penalty for late payments and an administrative fee for policy changes. By being aware of these costs, Biyi could plan her payments better and avoid unnecessary expenses. This is one area a lot of customers are not aware of, especially given the fact that most people don’t ready policy documents but just the summary which usually gives a glimpseful imagery of what the real insurance policy covers.
Conclusion
Asking the right questions when purchasing insurance, whether online or offline, is crucial for making informed decisions. In Nigeria for example, some insurance companies have Bot tools that help provide immediate responses to questions, thereby providing the needed help to understand coverage and exclusions, compare policies, clarify terms and conditions, ensure adequate coverage, assess customer service, and identify hidden costs. By actively engaging in the insurance buying process and seeking detailed information, you can secure the best possible protection for your needs and avoid unpleasant surprises. Always remember that the more informed you are, the better equipped you will be to choose an insurance policy that truly safeguards your interests.
