Practical advice before concluding an insurance contract. What to look for?

A person who enters into a long-term funded insurance contract must understand that he must choose one of two things: either a contract for life or lost money. 

The fact is that the majority makes emotional decisions, succumbing to the charm of an insurance broker who described the benefits of insurance or promised profit in the field of their business. As a result, a rash decision leads to the fact that next year, almost half of the customers stop paying their fees. 

In this case, the insurance cover is not valid, the accumulation process is frozen. It is impossible to return the money according to the contract, and the former client begins to blame the insurance company for everything. 

And what other points of the insurance contract need to be taken into account right away, so that later you will not grab your head?

1. The contract is concluded for a minimum of 5, 10 years, depending on the company that provides insurance services. You cannot terminate the contract ahead of schedule, despite the assurances of the insurance broker. 

2. The client has a month in order to pay the next annual insurance premium to the company account. This month starts from the date of conclusion of the contract. Suppose that the contract was concluded on February 1, 2017, which means that until March 1, 2018, without paying the next premium, the client will still be covered by insurance.

3. The insurance company is not obliged to fulfill its obligations if the insured event occurred due to war. The word “war” is spelled out in the terms of the contract. Military operations are taking place in Ukraine, although official Kiev calls the events in the Donbass an anti-terrorist operation, the insurance company considers the situation in the region as military operations. 

Does the company mean that throughout Ukraine the company may refuse to pay? 

No, not even a client who lives on the territory of hostilities, even a military man, will have to get paid if the insured event is not directly caused by military operations. 

Example: A person injured by a chainsaw in a war zone must receive a payout, but a person who is injured by shelling will not receive a payout.

4. It is not possible to receive payments even under the accumulative insurance contract provided that false medical data is indicated. It is not possible to trick an insurance company or hide health data. But we say: “There are no healthy, there are unexplored.” If a person did not know about a serious illness that caused the insured event, will this event be interpreted as data hiding? Yes, if there is a documentary examination of the relevant doctor about the health status of the client. No, if there were no documents and the person did not know and could not know about the presence of a disease that led to one or another insured event, the insurance payment will be made.

5. Do not take the floor to the consultant of the broker company. Firstly, he may simply not know one or another clause of the contract and interpretation of the insurance company. His training is focused only on selling. From this follows the second point why you should not trust him. A consultant can deliberately reduce risks and omit all the details, guided by the desire to make money, and not serve the client. Compare his words with the words of an employee of the insurance company and be sure to record the words and interpretations of the latter on the recorder. 

Be careful and attentive, let the long-term insurance contract become a deliberate decision, and not an emotional impulse.