10 Questions to Ask Your Insurance Broker Before Buying a Policy

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Top 10 Questions to Ask Your Insurance Broker Before Buying a Policy

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Are you planning to buy your first insurance policy? It’s common to have a lot of questions, and it’s recommended to hire an insurance broker. Fortunately, if you hire an insurance broker, you can ask as many questions as you like. Insurance brokers are experts when it comes to insurance, so they have a wide range of knowledge on the topic. Even if they don’t specialise in a specific insurance type, they can still answer common questions.However, if you’re not familiar with the specific insurance you need, it can be hard to identify the specific questions you’re going to ask. In this article, we’ll discuss some of the most common questions potential insurance policyholders usually ask.

1. What Types of Coverage Does This Policy Provide?

One of the first things you should be aware of is the types of coverage the policy provides. If you’re going to ask for recommendations from your insurance broker, they’ll usually provide a list of policies based on your needs and preferences. However, you should know the specific coverage that your policy has.The coverage usually varies depending on the specific type of insurance. For instance, if you’re getting business insurance, the policy may include liability insurance coverage and business interruption.

2. What Is the Total Cost of the Policy?

A reliable insurance broker is transparent regarding the full cost of the insurance policy. At the same time, you should be aware of the payment frequency, deductibles, and additional fees.Besides, availing of insurance is a financial commitment, and it’s never cheap. So, if you’re planning to get one, you should know right away if you can afford it.

3. Are There Any Discounts Available?

Many insurance providers offer discounts for new clients or those who will pay higher premiums. In addition, there are also other ways to get deals, such as having low risks, availing of multiple policies, and if you haven’t filed for claims before.In some cases, especially if you’re working with an excellent insurance broker, they just know the right time when insurance providers offer additional discounts.

4. How Does the Claims Process Work?

Although most insurance policyholders don’t prefer to file for claims, it’s inevitable. So, as an aspiring insurance policyholder, you should ask about the process of insurance claims. Usually, insurance brokers can help file claims, especially if it’s an emergency, and you can’t do it on your own.In addition, you should ask how long the process will take, whether it’s 24/7, and the documents you need to accomplish when filing for claims.

5. What Are the Policy’s Exclusions?

Every insurance policy has exclusions, and you should know and understand yours. Additionally, you can ask the ways to minimise these exclusions, the specific events and scenarios that aren’t covered, and the overall effect of these exclusions on your insurance policy.

6. What Is the Policy’s Renewal Process?

Depending on the insurance provider, the renewal process may vary. There can be automatic renewal, policy changes, and changes in the coverages for the premiums upon renewal. In some cases, new insurance holders don’t know that they’ve availed of the term insurance, which expires, so they’ll have to file for another application once it expires.

7. What Happens If I Cancel the Policy?

In some cases, you can’t help but cancel the policy, which is also something you should be aware of. You can ask your insurance broker about the process of the cancellation, the penalties or fees, and if you can refund the unused premiums. Unfortunately, refunds are usually not available if you cancel a premium, so ensure that you’ll continue with your premium if you’re planning to avail of any insurance policy.

8. Is the Policy Customisable?

Nowadays, various insurance providers are offering customisable policies. So once your insurance broker identifies your needs, you should confirm whether the insurance policy is customisable. If not, you should look for other options.Besides, if you choose to avail of the non-customisable insurance policy, you might not eb able to utilise what you pay for. There may be some coverages that you need, and you might lack what’s essential.

9. What Is the Financial Strength of the Insurer?

Since you’re entrusting your money when investing in an insurance policy, the insurance provider should be reliable. Some of the ways to know whether they’re reliable include the history of paying claims, credit rating, reputation according to clients, and regulatory issues.

10. What Support Does the Broker Offer After Purchase?

Once you already found your ideal insurance policy, the next is to get further support or assistance from your insurance broker. A reliable insurance broker can assist you with the claims, policy adjustments, and regular review of your needs and the policy.

Final Thoughts

As a potential insurance policyholder, you should be aware of everything you need to know about the specific policy you’re planning to get or the recommendation from your insurance broker. Additionally, don’t hesitate to ask your broker, especially since they’re the experts in the field, and their priority is to help you.