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Importance of Reading Fine Print Before Buying an Insurance Policy

There are two types of people: those who go through the life insurance policy terms and conditions section to learn more about what they might sign, and those who avoid doing so out of inconvenience. After all, reading the fine print of any document may be challenging as it involves breaking down a bit of legal jargon. Even though most people might not have the time or interest in reading this section of their insurance policy, there are circumstances where knowing this information comes in handy.

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 7th July 2024
Modified on: 7th July 2024
Reading Time: 15 Mins
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Here’s why reading the fine print of your insurance policy is essential, and how doing this can save you the future hassle, and losing money.

 

What is the fine print in an insurance policy?

 

First, let’s describe what the fine print of a life insurance policy is. These are often labelled as the “terms and conditions of life insurance policy'' and contain information that tends to add nuance to what is stated on your life insurance policy document. This is what we are referring to with the term 'fine print.'

The second you sign your insurance papers and submit your documents for approval, the underlying assumption is that you have read the fine print and agree to the terms and conditions of life insurance policy.

 

Why is fine print important to read

 

With the above backdrop, what makes reading the fine print so important? Here are a few reasons you should make it a habit to browse the terms and conditions of any contract you plan on signing:

● Gives you a better understanding of your policy:

When you choose to go through the fine print of your life insurance policy, you’re ensuring that you are aware of, as well as understand all of the provisions of your policy. This practice makes you a smarter and more informed customer. In fact, you might find information about your policy in this section that is enough to either convince you or dissuade you from signing your life insurance policy documents. It's important to avoid taking the chance of assuming you know everything about a life insurance policy before you sign the papers.

● Saves you money and time :

If you were to buy a life insurance policy without going through its terms and conditions, and it so happens that the policy is not valid under certain circumstances which frequently occur for you, then paying premiums towards it becomes futile. Reading the fine print can save you from spending copious amounts of money on a policy that is unsuitable for you.

● Offers you legal protection:

Every document's terms and conditions are designed to help both parties legally. When you go through the terms and conditions of your policy, you know exactly what to expect from the policy. If you do not receive, for whatever reason, what is written in the signed agreement, you are within your rights to let your insurer know. Remember that if you do not fully agree with the life insurance terms and conditions, nobody can force you to sign the insurance contract. Hence, reading the fine print can help you learn what is expected from your policy, and demand it if you are not getting what was promised.

 

Conclusion

 

At the end of the day, you do not want your insurance claim to get rejected for a reason that comes as a surprise to you. Instead, you want a policy whose protection is guaranteed in the agreed-upon circumstances. For this, it is necessary to read the terms and conditions of your policy and understand exactly what you plan on signing. You can save yourself future hassle time, and money by reading this section of your policy, and also become a more informed customer in future insurance purchases.

Source:

https://www.policybazaar.com/life-insurance/general-info/articles/insurance-contract-read-the-fine-print-carefully/#:~:text=Remember%2C%20insurance%20is%20meant%20to,the%20reason%20of%20claim%20rejection.

https://pennsaukenvillas.com/blog/important-read-fine-print/#:~:text=Reading%20the%20fine%20print%20before,a%20smarter%2C%20more%20informed%20consumer

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The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. 

The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.

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