6.3.8 Read the fine print

When buying insurance, go over the fine print with your agent or broker. Discuss the optional types of insurance you can buy that could cover you for situations not covered by your general insurance policy. Ask your insurer to go through some possible losses (for example, a house fire) and explain what you would be covered for and how the claims process would work. Be aware of what is excluded, and have an emergency fund to cover unexpected events for which there is no coverage.

Read each of the examples and indicate whether or not you think the person's insurance policy would cover him or her for the event.

Jason checks whether his accident is covered by his insurance policy.

Jason was a careful person, so when he was planning a Caribbean vacation, he purchased travel medical insurance just in case he became sick or injured while away. At the resort, he saw a poster for scuba diving lessons. "I've always wanted to try that," he said, and signed up.

During the lesson, Jason accidentally bashed into an underwater rock and broke his elbow. "Thank goodness I bought travel medical insurance," he thought, coming out of the local hospital with his arm in a sling.

Would you expect to be covered if you had bought insurance like Jason's?

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