Consumer Tips .... for buying insurance!

While you shouldn't put off an important decision that would provide protection for your family, take the time to make sure you fully understand any policy you are considering. You should be comfortable with the company, agent and product before purchasing anything.

Be sure the insurance agent fully explains the product and options and gives you choices before you make a final decision. 

Review the copy of your application contained in your policy. Promptly notify your insurance broker or company of any errors or missing information. 

After you have purchased an insurance policy, keep in mind that you have a "free-look" period, usually 10 to 30 days after you receive the policy, during which you can change your mind. Read your policy carefully during this time. If you decide not to keep it, the company will cancel the policy and provide an appropriate refund. 

Review your policy periodically or when changes occur such as purchasing a home or having children. An insurance broker can help you make sure your coverage is always aligned with your needs.

When you replace one policy with another you incur new costs and fees. That's why, generally speaking, it's in your best interest to keep a permanant policy and add on to your insurance protection, instead of replacing the existing policy. If you do decide to cancel a policy, be sure to contact the original (or servicing) agent or company first to make sure you fully understand the financial ramifications. 

Note:  Due to the ever decreasing premiums for term insurance, it may make sense to replace an existing term policy for a premium saving; if you are in good health. However, you should always ensure that your insurance broker fully explains the pros and cons of replacing an existing policy.

If you have a concern or complaint, start with your insurance agent who can often troubleshoot problems for you.

If you're still dissatisfied, most provinces have an insurance councel or consumer affairs division that handles complaints or you can contact your insurance company's customer service division.