Your One-Stop Guide To Buying An Insurance Policy

Everyone on the planet will have some form of insurance in their lifetime. Whether it’s contents, life or travel, insurance is vital to ensuring our safety, and helping us when things go wrong.

Before things go wrong, they must go right, though. Your insurance policy has to be right for you, else you could end up wasting quite a lot of money. Read the T’s & C’s carefully, and follow these steps for the best possible outcome.

Step 1: Consider what you need

Do you really need to have your washing machine insured with a warranty? Are you going on holiday soon? Are you concerned for your pet’s health? Depending on your answers to these questions, it may or not be prudent for you to take out an insurance policy. Some, like that washing machine warranty, are extraneous, while others, like travel insurance, are all but a need.

Step 2: Shop around for a good deal

The cheapest isn’t always the best, and the most expensive may not cover everything you need it to. So, it’s important to not just jump at the first deal you get. Take the time to consider your options, and you could end up with something better in the process. Consider using sources like Gocompare.com, and if you have any friends in the industry, ask them too. Ask your family which insurance policies they took out. Use all the advice you can get!

Step 3: Don’t fall for bundled insurance

Sometimes, you can get your insurance bundled with something else. For example, if you book a holiday, the provider will usually offer you travel insurance on top of the holiday fees. More often than not, this is of a much higher price than you could get elsewhere. The provider knows you need that travel insurance, so they’ll try to tempt you with an all in one deal.

Suffice it to say, that these are not ‘deals’. Far from it. Looking elsewhere for your insurance cover can save you a lot of money.

Step 4: Check the policy covers what you need

Have a thorough read through the policy documents. Check every feature, and check whether you’re happy with it. At this point, you can decide whether to proceed or to look elsewhere.

If you’ve already taken out a policy, then it’s not too late to change your mind. You have between 14 and 30 days to request a withdrawal, though there may be additional fees for this.

Step 5: Answer all questions honestly

The policy provider will have several questions to ask of you when you are taking out your cover. It’s important to be 100 percent honest at this stage, no matter the ramifications – it could come back to haunt you further down the line. If you are found to have been dishonest, your policy could be cancelled and you may not be approved at all. There’s a lot of information on what questions to expect, such as investopedia.com, so you don’t have to be in the dark!

Buying insurance isn’t as simple as just slapping down some cash. As a process, it takes time, and you have to be careful at each step. Best of luck!