by Sharon Jones
Insurance policies are in place to save the policyholder from a financial crisis in the hour of need. It is needless to mention that emergency could range from minor injuries to property damage, and in some cases, be even a matter of life and death.
Keeping a note of the dangers involved, insurance companies also offer a plethora of insurance covers. And not all policies cover all emergency expenses. For instance, motor insurance may not cover medical bills if the policyholder undergoes treatment for a heart problem.
Well, you may already know what an insurance policy is and how it works, but what you may not know are the following facts; the facts that are lesser-known about insurance policies.
Keeping a note of the dangers involved, insurance companies also offer a plethora of insurance covers. And not all policies cover all emergency expenses. For instance, motor insurance may not cover medical bills if the policyholder undergoes treatment for a heart problem. This is why you should always confirm the details of your policies with your Insurance brokers in Ontario or wherever you are located.
Fact #1 Medical Tests are not Mandatory for Life Insurance
One of the major reasons why people avoid buying a life insurance policy is the prerequisite to go through medical tests. Although insurance premiums and cover depend upon the health history of the applicant, it is not at all necessary. Simply put, there are no-medical insurance policies available in the market. For instance, this link here, https://shelterbay.ca/no-medical-life-insurance-canada/, explains the same. And simultaneously, it also offers the ways one can secure a life cover without having to go through medical tests. Essentially, these life covers only require the applicant to share the information by answering a few questions in yes/no and the insurer will offer cover.
Fact #2 Wearing a Seat Belt can Lower Premiums for Motor Insurance
This is truly a fact that probably most people are not familiar with. If the applicant has a history of a civil offense for not wearing a seat belt, they may require to pay a higher premium for their motor insurance. Now, of course, not wearing a seat belt may not potentially be harmful to others on the road, but it can surely put the driver at risk of sustaining severe injuries. In that case, the insurer is at a higher risk of paying large compensations for medical bills and damages.
Fact #3 Home Insurance may Cover Damage from Volcanic Eruptions
Most people believe that home insurance does not cover damages due to natural calamities. Well, this statement may partially be true, but is surely not the complete truth. For instance, homeowners can claim compensation in case of damages caused by volcanic eruptions. The reason being, there are around 1500 total active volcanoes in the world out of which most of them are at the ocean beds. This makes the damages caused by volcanic eruptions least common among natural disasters.
Fact #4 Some Policies are Transferable with Minor Increase in Premium
Another misconception regarding insurance policies is that they are not transferable. However, certain policies can be transferred to a nominee or the heirs of the original policyholder. For instance, estate insurances are the most common pieces that are transferred on to the new owner of the estate. The only difference is that the new owner is required to pay a little extra as a premium to initiate the transfer.
Fact #5 A Life Insurance Policy may act as Pension Plan
With a wide range of life insurance policies that are available in the market, it is quite reasonable to get confused. After all, the investor or the policyholder is always at a risk of losing his/her investment, if no circumstances to claim the cover appears. However, to tackle with such anomalies, the insurance companies offer a combined or pension cover, that provides retirement benefits along with covering the contingency expenses.
Fact #6 There are Provisions to Club or Buy Separate Insurance Covers
Lastly, having one kind of insurance coverage does not limit the options to avail of other covers. Simply put, if an applicant already has a term insurance policy to his name, he/she can still avail of another plan. Now, the catch here is that the additional plan can either be clubbed or bought as an add-on to the existing plan. Of course, it will affect the premiums to be paid and the expenses that are covered. Nevertheless, combining two or more policies only widens the options and opportunities.
The insurance industry is among the most underrated ones, mainly because of the complex terms and conditions put up by the insurance companies. However, most of these terms are governed by government agencies. So, it is advisable to go through the offer document carefully before making any kind of investment in insurance policies. After all, insurance investments are critical for sustaining a safe and secure future.