When you set out to purchase an insurance policy, do you go in expecting it to be something that you will need to use at some time? Most people would say no; however, it is important to look at this sort of purchase as one that could very well be needed in the future. By treating it as something you will have to rely on, you will better understand why choosing the correct amount and type is so important.
How Much Coverage Is Enough?
Protecting yourself, your loved ones, and your assets can depend on many things. How many dependents do you have? Do you have a mortgage? Does your spouse work? Each of these must be considered when selecting an appropriate amount of coverage. While there are many online calculators that can help, sitting down with a trained agent can make a serious difference in making the right choices.
Comparison Shopping
Just as with anything else, if you want to find the best possible policy to fit your needs, then it is important to look at several different carriers. An independent insurance professional can help accomplish this much more easily as they typically deal with many different companies and can help you find the right policy without near the footwork on your part.
Another benefit to working with an independent insurance professional is that they can help you navigate the many different levels of coverage offered by each carrier. Knowing that you are covered by a company that is both reputable and that offers a high level of customer service is certainly worth its weight as well.
Avoid Buyer’s Remorse
Keep in mind that an insurance policy is for all intents and purposes a legal contract. As such, it will typically involve quite a bit of technical language that may be difficult to understand. Make sure that you read it carefully and know what you are signing before doing so. Usually, a policy will tell you many things including:
- Individuals or Assets Being Covered
- Coverage Limitations and/or Exclusions
- Coverage Periods
- Amount of Coverage
- Amount of Premium
- Required Method for Reporting a Claim
Again, make sure to ask your independent insurance professional to clear up any questions you may have concerning any of these points.
Life Changes = Insurance Changes
Life brings changes. With these changes come changes in your insurance needs as well. As such, it is important to step back and review your insurance coverage to ensure that you still have the proper level necessary. Some of the various times you might want to re-evaluate your insurance coverage may include:
- Following Marriage or Divorce
- When Renting an Apartment or Buying a Home
- Beginning a Family
- Sending a Dependent to College
- Purchasing a New Vehicle
- Selling or Buying a Business
- Taking on Care of an Elderly Parent
- Retirement
No matter which of these life events is taking place, by evaluating your existing insurance coverage and assessing for any further coverage needs, you will be putting yourself in a much safer financial position in the event of any unfortunate circumstances.
