Why It’s Okay To Have Multiple Insurance Policies
Did you know that it’s okay and acceptable to open insurance accounts from different, trusted companies? Yes, you’ve read that right. According to an article in The Economic Times, having multiple insurance policies can provide broader coverage.
This allows you to fill gaps that one policy might leave uncovered. As a person’s income and responsibilities increase, so does the need for comprehensive coverage. Moreover, having policies with different insurers can help ensure that if one company rejects a claim, another can still provide coverage. [The Economic Times]
Why It’s Okay To Have Multiple Insurance Policies: More Coverage, The Better
As a Financial Consultant, we’re told that clients having existing policies is actually advantageous. This shows their belief in insurance and their possibility to explore additional benefits.
Furthermore, each insurance company has its unique strengths and weaknesses. Some may offer affordable plans, while others provide benefits not yet available elsewhere. Certain companies even offer a combination of both. However, if you aim for enhanced protection, acquiring multiple policies might be the preferable choice.
One policy may cover certain areas while another addresses those left unprotected by the first. This creates a comprehensive safety net, like assembling a puzzle, with each policy filling in the financial gaps left by the other policies.
Things To Do Before Getting More Policies To Fill Our Financial Gaps
Financial gap pertains to the areas where there’s a lack of protection, or planning to meet specific financial needs or goals. It’s important to set aside some of your money to ensure stability and provide adequate protection. Since this concerns money, it’s understandable to become cautious about how we use and invest it. Moreover, being cautious is understandable, considering the effort it takes to earn and save.
That’s why Financial Consultants exist – to help you plan and map out your financial goals and provide protection once your policy is approved. And as one, here are some things you should look out for to ensure your money is, and will be in good hands.
1. Ensure that an insurance company is stable.
As financial advisors, we were trained to introduce the company, emphasizing its tenure in the industry, along with its achievements. This approach fosters trust with the client, highlighting the company’s stability and reliability in managing its funds.
Moreover, as a client, I would personally investigate the company’s history and reputation for trustworthiness. And this should also be done by everyone so they’re at peace knowing that their savings will be in good hands.
2. Keep track of the terms and conditions of each company.
Naturally, as the company progresses, changes in their terms and conditions are inevitable. Therefore, staying updated with their updates is crucial to remain informed and aligned.
3. Say ‘yes’ to their meetings so you can have a full understanding of how insurance policies work.
Some financial advisors offer online/Zoom meetings, while others can set up face-to-face appointments—complete with coffee, of course. As an FA, a typical presentation can last 20-30 minutes. However, the duration may vary based on client questions and additional anecdotes we can share to make the meeting more relatable.
Moreover, within those 30 minutes, FAs can provide you with a comprehensive understanding of how insurance policies work. It’s important that you fully understand the benefits, so you know exactly what you’re getting.
4. It’s okay to take your time before deciding, however, it’s also important to feel some sense of urgency.
Remember, it’s your money. Connected to what I’ve said above, it’s crucial to fully grasp what you’re getting into. To add to this, it’s also okay to evaluate different aspects and consider all options.
However, overthinking may delay your protection. Since you never know when you’ll need it, decide as soon as possible after careful consideration. Remember, it’s important to invest in yourself first before giving to others. That’s why having insurance policies is a wise decision, as they offer protection.
In my previous article, I discussed the value of insurance, emphasizing the availability of financial assistance with saving at least 100 pesos per day. In this one, I tackle the importance of having multiple policies, which can serve as safety nets. Nothing beats the peace of mind of knowing you’re protected, ensuring your family will be taken care of even if you’re already taken out of the picture.
