What Insurance Is Right For Me?
Obviously, having cover against everything that could possibly go wrong would be the ideal scenario, as it then alleviates all the financial worries that individuals face in the event of bad things happening. However the costs could be restrictive. This being the case, it’s important to establish what insurance is deemed as necessary but at the same time is affordable.
When considering buying insurance there are some factors you need to bear in mind:
– Is it illegal not to have it- e.g. Car/motor insurance
– Are you already covered- e.g. some workers are already covered against death or illness by their employers.
– Consider the worst-case scenarios and assess how you and your family would be able to deal with the financial implications if you did not have insurance.
– Would delaying taking out insurance cover result in your premiums increasing.
– Can you cancel your policy at any time, if your needs and circumstances change without incurring a penalty
Points to Consider When Purchasing Insurance:
The Amount of Cover
Some types of insurance allow you to select specific levels of cover i.e. Life and home insurance, while others provide a level of cover that’s decided in advance i.e. travel and medical insurance Whatever insurance cover is chosen it’s very important you get the balance right, i.e. you are not paying for extra cover you don’t necessarily need, but at the same time you don’t want to run the risk of being uninsured.
The Scope of Cover
As with all insurance policies it’s important to know what is and what isn’t covered. Policies vary from company to company; therefore, avoid assuming that because one company covers a particular item the others do also.
Ordinarily, the policy holder will have to pay a percentage of the claim themselves i.e. excess. It’s advisable therefore to check how much this is, because a high ‘excess’ could prevent the policy holder from making smaller claims and so diminishing the benefits of the policy.
With the multitude of offers now available to purchase insurance, it’s worthwhile to shop around for the best available deals. Be mindful however, that the cheapest premiums don’t necessarily signify that it’s the best deal. It’s important when comparing policies, not just to check the cost of covers but also things like the level and scope of cover, plus the policy excess.
Ways To Purchase
Insurance Companies- This might seem like the most straight-forward route to take, however if you don’t diligently shop around beforehand then there’s a high possibility you won’t get the best deal
Brokers– Theoretically, brokers scour the marketplace to ensure they find you the best deal possible minus all the time, hassle and unnecessary costs on your part. However, this isn’t always the case. Generally, all brokers receive varying levels of commissions from insurance companies for selling their policies. Such a situation can lend itself to brokers guiding your business towards companies who pay the most commissions.
Comparison Websites– These are the online version of a broker. These websites produce an unbiased list of quotes from several insurers, making it easy for you to compare the best deals for you. It’s worth noting that no advice is giving at any stage.
Financial Advisers– Advisers usually advise on insurance policies that are more related to health. If you wish to have some help and guidance on purchasing income protection, critical illness or private medical insurance then it will be worth your while seeking the advice of a qualified financial adviser.
N.B. Whenever you purchase insurance whether online, over the phone or through an adviser, you usually have 14 days to cancel your policy. If you do buy insurance and then you have a change of heart or you don’t think it is suitable, then make sure you check the terms and conditions of the policy to see if you are able to cancel.