The decision to get insured requires a great deal of consideration. However, factors like emotions, misinformation, and a sense of urgency could cloud your judgment in choosing an insurance policy. The antidote to this is to be informed when dealing with insurance-related matters.  

Let us walk you through the common mistakes people make when availing of and handling insurance policies so you don't commit the same pitfalls:    

1. Choosing a policy that’s not aligned with your financial capability. Insurance allows you to protect your assets like properties and vehicles, as well as intangible treasures such as health. It also provides peace of mind amid life’s uncertainties. Ironically, it can also be a source of distress if you’re paying for premiums that are beyond your means.  
   Before committing to paying for life and health insurance, be honest about your financial situation and how much you can afford to shell out for regular payments. Take into consideration factors such as how much you earn and any outstanding debts and other financial obligations you have. In the case of assets that require mandatory insurance, such as a car, this involves a more comprehensive look at your financial situation. Always factor in the cost of insurance when purchasing an asset like that.  
   
   
2. Automatically going for a policy with the lowest premium. Taking into consideration your financial situation also means not scrimping on your insurance if you can afford a more comprehensive one. For example, if you take home a sizable paycheck and have many dependents to support, it wouldn’t make sense to settle for an entry-level policy with meager coverage. Go with a policy that’s more suitable for you and your family’s needs in case of an accident or untimely death.  
   If you’re working with a limited budget, it might help to determine what you’d like to prioritize first then purchase a product based on that need. If you need critical illness protection, for example, you can take out AXA’s Health Start Lite for a small monthly premium.  
   
   
3. Overlooking your policy's provisions. This mistake may result in false assumptions and frustrations when it’s time to file for claims. The solution is simple: invest time in understanding your policy's provisions. Also, never hesitate to seek clarification from your insurance provider to ensure you understand the intricacies of your coverage.  
   
   
4. Failing to do your due diligence. It is also your responsibility to research the legitimacy of the insurance company and the agent you’re doing business with, especially if it’s your first time dealing with them. It doesn’t hurt to err on the side of caution now that scams are prevalent. Be careful of false or misleading guarantees and representations of the product features and benefits during selling. Be wary of anything that sounds too good to be true. Also take note of the agent’s accessibility, the way they communicate with you, and their behavior in general.  
   
   
5. Not factoring in the deductibles and coverage limits. Insurance policies come with deductibles and coverage limits you must know beforehand. You would want to know these important details beforehand and not while under physical, mental, and emotional anguish in the event of an illness or accident. It pays to familiarize yourself with your policies' deductible amounts and coverage limits so you don't get caught off guard later on.  
   
   
6. Ignoring the need for policy reviews. Life is dynamic, and so are your insurance needs. Failing to review and update policies regularly is a common mistake. Major life events like marriage, the birth of a child, or a career change can alter your insurance requirements. Make sure to schedule periodic reviews with your agent to ensure your coverage supports your current life situation.  
   
   
7. Not organizing your files and not telling anyone about your insurance. Payment of policies is often a long-term affair. Ensure all documents related to your insurance policies are properly labeled and organized. Have a filing system and ensure a long-trusted family member, friend, or lawyer knows about it. Otherwise, it will be chaotic and guesswork for those who will care for you or those you will leave behind when an unfortunate incident or the inevitable happens. 

These are only some of the common insurance-related mistakes people make. Overall, it's about knowing your responsibilities, communicating well with your insurance provider, and doing your research well.  

Know you can game plan your future with an insurance policy that’s right for you.Talk to an AXA financial advisor.  

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