Don’t rush into buying a policy

Before signing on the dotted line, know what your plan gives you.

Erroneous buying of insurance policies — whether you are misled by the seller or managed it on your very own by being less than diligent —leads to hardship. You have paid for some perceived protection and find it is not all there at the worst possible moment, when a loss occurs.

Many readers’ queries at this time of the year are about which policy to buy so that the premium can be paid before the financial year to avail of tax benefits. Such purchases, driven by deadlines or by benefits not related to insurance, can turn out to be poorly-thought through.

A typical, rushed decision is when your vehicle policy is urgently due for renewal. Much has been written about remembering your insurance renewal date. Yet, this often becomes a sudden emergency in the one week, or even the one day, before your policy expires.