More insurance customers like handling everything by email, text, or online. Electronic signatures make this possible. When they first appeared, many of us wondered whether they could truly replace handwritten signatures. They did — and they are here to stay. E-signatures allow many insurance transactions to be completed faster. Maybe too fast.
Usually, an agent asks questions and fills in the application for you, and then sends it to you to review and provide an electronic signature. That signature is important. It confirms that you have reviewed the application and agree that the information is correct.
But here is the problem: Many people sign without reading and really understanding what is in the application. The insurance application sets the foundation for your coverage. It contains the customizations you discussed with your agent, information used to decide whether you qualify for coverage and what your coverage will cost. The insurance company assumes the information is complete and accurate.
Without a real conversation, errors and missing information can go unnoticed — until there is a claim. Incorrect information could reduce a claim payment or cause coverage to be denied. In rare cases, an insurance company may cancel or even void a policy if accurate information would have changed its decision to offer coverage.
That is why you need two good conversations with your agent when you buy insurance. The initial conversation when your agent collects information to fill out the application, AND the conversation about how the application was filled out. Don’t skip this second conversation for the sake of speed.
Over time, as your life changes, a periodic review of your coverage needs will uncover not only missing coverage that should be added, but you may also find coverage that no longer fits your circumstances. This is how you make sure you are paying for the coverage you actually need, year after year.
When buying insurance, insist on a good conversation about your application before providing an e-signature. Then at least every few years, ask your agent to review your application and coverage with you. It will be time well spent!