People buy insurance to protect against potential financial risks and to protect future requirements. The key to buying adequate protection is to make sure there are no gaps in the insurance portfolio – be it for life policy, health insurance policy or for protecting other asset classes like motor vehicles, property etc. At the same time, buying overlapping protection which is redundant at the time of need with inefficient investment in the insurance premium. There is also a need to assess own financial situation and not to over-invest in insurance. Least cost insurance which adequately covers future needs while no overburdening current financial outlay provides the most efficient framework for selecting the right cover.
Insurance Agents and Advisors are often able to guide their customers through the myriad of options available to build a fully covered insurance portfolio. However, that requires a certain level of awareness from the customers to be able to ask the right questions. For example, a customer may want to know what kind of insurance policy other similar customers are buying. Giving the specific family structures and socio-economic profile of the households, what life and non-life
insurance covers are viable.
What are the best health care plans and how do they compare with each other? In essence, the customers want to compare and understand their own requirements better.
A better understanding of own financial risks is the first step in developing an effective protection portfolio of insurance products. Else the consumers are in danger of overestimating or underestimating their own risk coverage requirements. True protection if only offered through insights provided through intelligence driven by customer profile, customer behaviours and day to day lifestyle requirements. Empowering customers through digital tools can solve part of the puzzle where comparison and analytical the reasoning could be provided to better understand coverage requirement.
Watch out for further updates from TrueCover how we consumers to make intelligent choices in buying the true coverage mix.