Be a Smart Consumer: What to Look for Before Buying Any Insurance Policy

Buying insurance is one of the smartest financial decisions you can make but only if you understand what you’re signing up for.

Many people rush to purchase insurance without reading the fine print, only to be disappointed when their claims are denied or delayed.

Being a smart consumer means taking the time to understand what you’re paying for, what you’re covered against and what responsibilities you have as a policyholder. 

That knowledge can save you from future frustration, loss, and financial hardship.

Here’s a practical guide to help you make informed insurance choices in Ghana.

1. Understand What the Policy Covers

Every insurance policy is designed to protect you from specific risk. Not everything that could go wrong.

Before you buy, ask your insurer or agent to explain exactly what situations are covered.

Motor Insurance: Is it Third Party Only, Third Party Fire & Theft, or Comprehensive?

Health Insurance: Which hospitals, treatments, and drugs are included?

Life Insurance: What benefits are paid for death, disability, or maturity?

Note: Always read the “Scope of Cover” or “Benefits” section and have it explained in plain language. If it’s unclear, ask again.

2. Know the Exclusions and Limitations

Every policy has exclusions. That is things the insurer won’t pay for. Understanding these is just as important as knowing your benefits.

Common exclusions include:

1. Driving without a valid license or under the influence of alcohol
2. Intentional or criminal acts
3. Pre-existing medical conditions not declared at the start
4. Expired or unpaid premiums
   
   Note: Always ask, “When will this policy not pay me?” Knowing the exclusions helps you avoid disappointment when it matters most.

3. Examine How Claims Are Handled

A good insurer should have a clear, simple, and fair claims process. Before buying, find out:

1. How do I file a claim?
2. What documents are required?
3. How long do claims take to process?
4. Is there a helpline or online claim portal?

Note: Ask around: friends, family or colleagues can tell you how quickly their insurer paid. You can also contact the NIC Complaints Bureau for advice or help with disputes.

4. Check if the Insurer or Broker Is Licensed

Never buy insurance from an unlicensed person or company.
If the insurer or broker is not registered with the National Insurance Commission (NIC), your policy may be invalid and you could lose your money.

Note: Visit www.nicgh.org or call the NIC to verify the legitimacy of any insurance company, broker or agent.

5. Compare Value But Not Just Price

The cheapest policy isn’t always the best.
Low premiums may come with narrow coverage, slow claims, or hidden exclusions.

Tip: Look for value. A slightly higher premium from a reputable company that pays claims promptly is worth far more than a cheap policy that fails you in your moment of need.

6. Keep Proper Records

1. Always keep copies of your:
2. Policy documents
3. Premium payment receipts
4. Renewal confirmations

These serve as proof of coverage and payment when making a claim.

Note: Store digital copies in your email or on your phone for quick access.

7. Review and Update Your Policy Regularly

Your life changes so should your insurance.
If you buy a new car, expand your business or start a family, review your policy to ensure it still meets your needs.

Note: Schedule an annual review with your insurer or broker. Updating your policy keeps you fully protected.

Final Thought

Insurance isn’t an unnecessary cost but it’s a safety net for your future.
In one accident, illness, fire or flood, a good policy can save you from losing everything you’ve worked for.

Being a smart insurance consumer means asking questions, reading carefully, and choosing wisely.
When you understand your policy, you’re not just buying insurance—you’re buying peace of mind.

Published by InsureGhana.com — Promoting insurance awareness and consumer protection in Ghana.