Insurance Basics
What is insurance?
An insurance policy protects you from the risks associated with everyday life. It buys peace of mind, allowing you to minimize financial exposure by sharing your potential for loss with others.
Why should I buy insurance?
Some insurance is compulsory. For example, you must be insured to drive an automobile, and the terms of a mortgage will require that your property be insured. In other instances, you should consider the likely impact of the event you’d be covered against in order to decide whether it’s worthwhile.
What is an insurance policy?
The policy is a legal contract between you and the insurer. You are responsible for making sure that you understand and fully appreciate what you are signing when you take out a policy. You should read the document carefully to see that it provides the cover you need and to note any significant exclusions.
Is there anything I should tell the insurer before buying?
Make sure you tell the agent about any personal circumstances that might make a difference when you come to claim. For example, the agent may need to know about medical conditions to ensure that the product you are buying is appropriate.
What if something goes wrong?
Your policy document will tell you how to make a claim. If you are not satisfied that your claim has been handled correctly you should contact your insurer, who will tell you how they will handle your complaint.
What if I am not satisfied with my insurance company's response?
You can contact the coordinator of the Bahamas General Insurance Association or refer your case to the Registrar of Insurance. The Registrar regulates the sale of insurance according to the Domestic Insurance Act, which sets guidelines for companies, agents and brokers to follow. The BGIA has also published a code of conduct for its members.
Can insurance protect my income and lifestyle?
Yes. There are products that can protect you and your family from financial devastation in the event of retirement, disability or premature death. You can choose from endowments, whole and term life policies, pensions and annuities.
