“Don’t just sign it—read this first.” A relaxed, practical guide for anyone considering insurance.
1. Thinking All Insurance Is the Same
Many people think insurance is just insurance. But there are different types with different purposes:
- Life insurance: financial protection for your family if you pass away
- Health insurance: covers medical expenses
- Vehicle insurance: protects your car or motorbike
- Property insurance: protects your home or business assets
Mistake: Buying health insurance and expecting your family to receive a payout when you die. That’s not how it works.
Tip: Know what you’re trying to protect before choosing a plan.
2. Buying Insurance Just Because Friends Did
“My friend said this plan is great!” So you buy it too—without reading the fine print. That’s dangerous. Insurance is personal. What’s right for someone else may not suit your needs.
Tip: Understand your own financial condition and risks before deciding.
3. Not Reading the Policy Carefully
Your policy is a legal contract. But let’s be honest—most people skip it. Then they’re shocked when a claim is denied.
Things to look for:
- What’s covered
- Exclusions
- Waiting periods
- Claim procedures
Tip: Take the time to read it. Ask questions. It’s your right.
4. Chasing Investment, Forgetting Protection
Some people are drawn to insurance plans that “double” as investments. They forget the core purpose is protection. When the returns disappoint, they blame the insurance.
Tip: If you want to invest, do it separately. Choose pure protection plans for clarity and cost-effectiveness.
5. Waiting Too Long to Buy
“I’ll get insurance when I’m older.” That’s like buying an umbrella after you’re soaked. The older or unhealthier you are, the more expensive—and harder—it becomes to get insured.
Tip: Buy insurance while you’re young and healthy. That’s when you qualify easily and pay less.
6. Providing False or Incomplete Information
Some people leave out pre-existing conditions or lie on forms hoping to lower premiums. But insurers can deny claims or cancel your policy if they find out later.
Tip: Be honest and accurate. It protects you in the long run.
7. Ignoring the Company’s Reputation
Low premiums are tempting—but not all insurers are equal. Some have bad customer service or financial issues.
Tip: Choose a licensed company registered with your country’s financial authority. Read online reviews and check how long they’ve been around.
8. Missing Premium Payments
Forgot to pay? Your policy may lapse, leaving you unprotected. Some plans offer a grace period, but not forever.
Tip: Set reminders or use auto-debit. Check your policy status regularly.
9. Not Telling Your Family About the Policy
You’ve got insurance, but no one knows? That defeats the point. Many claims go unclaimed simply because families are unaware.
Tip: Keep a record of your policies. Share basic details with your spouse or trusted family member.
10. Thinking Insurance Is "Buy It and Forget It"
Your life changes. Your insurance should too. What worked when you were single may not suit you now that you’re married with kids.
Tip: Review your insurance annually. Adjust coverage as needed.
Insurance Is Peace of Mind, Not a Headache
Insurance isn’t a luxury. It’s a smart decision. But only if you understand what you’re getting into.
- Buy for protection, not profit
- Read everything, ask anything
- Keep your family in the loop
Ask yourself: “What do I want to protect?” That answer will lead you to the right policy.
Here’s to smarter, safer decisions with your insurance. Stay dry out there!