Understand the Ins and Outs of Insurance to Avoid Losses

“Insurance is a subject that many of us do not fully grasp, no thanks to the overuse of baffling jargon and incomprehensible legalese in policy documents. But this should not detract from our responsibility as consumers to try to understand how something so important actually works. After all, if you rely solely on the person selling you the insurance product and do not know how to ask the right questions, the consequences can be dire. It is particularly important to know the ins and outs when you decide to prematurely terminate a policy or are considering switching from one policy to another. The Sunday Times highlights three real-life scenarios, including one where a policyholder paid a high price for a poor decision.”

The couple had bought these plans at different times from various sources and had not informed each adviser about what else they had in their insurance portfolio. This made it difficult for any one adviser to grasp the big picture and identify the gaps and give good recommendations.

This is worth to read if your planning for your future, because every choices and every options come with consequences, you’ll just have to be wise.