Tips for Understanding Insurance Details and Fine Print
Whenever you are signing up for something, there is always a box that you need to tick, which says something in the vicinity of do you understand the terms and conditions, etc. Most of us just tick the box without reading the conditions like insurance details.
This also applies when you are signing up for your insurance policy. It is actually very important to read and understand the terms under which you are agreeing to.
Our hope with this article is to shed some light on understanding insurance details and fine print.
What is fine print?
In simple terms, the fine print is the specific terms, conditions, and other criteria that are written down when you agree to a contract. This is specifically mentioned in the terms and conditions (T&C’s).
Why is reading the insurance details and fine print important?
Let me start by giving this example, you have a house. To buy the house you took out a mortgage and along with the mortgage you paid for home insurance.
Now, like many others, in the excitement of owning a new home, you don’t read the fine print, in other words, the terms and conditions of your home insurance policy.
You have a big beautiful tree in the front yard of your new home. You and your family love this tree but one night a storm comes and topples the tree onto your neighbour’s property.
Being a good neighbour, it is your responsibility to fix this situation as the tree was yours. You decide to pay for the removal of the tree from your neighbour’s house and pay for the cost of the damage.
Now, if you had read the fine print of your home insurance policy, you could have seen they covered this kind of accidents and causes. So, your insurance would have covered it. But now since you didn’t know, you paid for it from your pocket.
Do you now see why we have been stressing reading the insurance details and fine print? If you had read it, you would not have to lift a finger, all of it would have been covered by your insurance.
Is it difficult to read the fine print and T&C’s of your insurance policy?
There is a small number of people who try to read the insurance details of their policy. But they also get discouraged by all the jargon and unfamiliar phrases used in the agreement.
For example, you got health insurance thinking your insurance provider offered treatment for mental illness. You did not read the insurance details of your policy but just assumed.
I mean what kind of insurance does not cover mental illness, right? I mean your mental health and physical health both are equally important.
When you contact your health insurance provider to pay for the mental illness treatment you need, you get a big fat no!
They will say something like they do not cover mental health treatments etc. But this is exactly the type of thing can happen to consumers who do not have proper knowledge about their insurance policy.
In this sort of case, there are only a couple of things you can do. Either change your current insurance provider and get an insurance provider who will cover your mental health treatment.
Or you can pay for the treatment out of your pocket. Which is the option chosen by most people because switching your insurance provider is hard. Plus, in some cases, you need to pay additional charges if you decide to switch before your insurance policy ends.
To avoid making this kind of mistake you can just start by reading the fine print. If you do not understand something in the fine print or the terms and conditions, ask your insurance agent or you can Google the words that you are unfamiliar with.
Wrapping it up
It is important to have a proper conversation about your policy with your insurance provider. Before you commit to a policy, read it thoroughly, do not skim through, if you have any questions ask them, if you are confused about something also ask.
Ask them what your insurance policy covers and what it does not. In this way, you will not be in the dark about your insurance details and have an insurance policy that has your back.