When you take out an insurance policy you are taking out a legal contract. It is an agreement, enforceable
by law between you and the insurance company. For its part, the insurance company will agree to pay you (or replace something) in the event of certain events happening. The insurance company will provide you with documents, sometimes quite a lot of documents, that will set out under what circumstances it will settle any potential claim. You agree to do at least three things:
Answer their application questions truthfully
Pay them the required premium
Tick a box confirming that you have read and agreed their terms and conditions
Just having three things to do, when the insurer can have upwards of thirty pages of terms and conditions (They may call them “Key Features” or “Policy Wording”, but they are still the terms and conditions that they do business with you) should be a big enough hint that these documents are worth reading. I know we all want things to be quick and easy, but half an hour spent reading before you sign on the dotted line or press “send”, will save both time and money in the long run. So regardless of the type of insurance always go through the paperwork first, preferably with a highlighter, making a note of anything you either don’t understand or don’t agree with and then….
ASK – absolutely anything that you do not understand or would like clarifying.