How to choose the best Insurance Policies

Paying too much in premiums?

Everyone seems to be selling you an insurance policy these days, but have they ever gone through a solid approach with you to get the very best terms from your policy.
Making sure you get a policy that has the right terms and conditions that are relevant to you, should be the main goal.
Just because a product is available doesn’t mean that it is the right fit for you

When looking at Insurance Policies look out for these key components

Premium
When comparing apples with apples its not always easy when it comes to insurance policies. If we look at a typical life insurance cover you will notice that policies differ on features, final cover, but ultimately your monthly or annual premiums. The key message here is, can you save on premium in the way in which you pay. For instance, in the long run level premium policies pay less in premium than rate to age insurance policies, although it looks expensive in the beginning.

there are significant differences between how premiums are paid and when they are paid. By paying upfront annually you can end up saving thousands on a cover that you otherwise would still pick up regardless of when you pay. The policy also must be affordable price wise but give you enough leg room to change it accordingly when your circumstances change.

Renewal date and term
Adjusting the way that you service your insurance policy can sometimes save you in the long run. What are the incremental increases, if any on your policy? Do premiums increase as you age or do they remain constant. When is the renewal date? Does your policy have an option to have fixed premiums as you age? Some life insurance policies enable you to have a fixed premium over the duration of the policy. Why would you need that one would ask, if I can pay a cheaper premium at the start of duration.

Some policies increase as you age and as you age there is a chance that you may not be able to sustain payments if they incrementally increase.
This may be due to your ability to earn or a health condition preventing you from working later in life.

Or in some instances you may only need an insurance cover for a set period. A term life cover for instance can match the length of the term policy to the length of your needs. You may have kids that are in the middle of their schooling education or have a mortgage due to be paid off by a certain date.

Remember that the premiums for life cover are lowest the younger you are and increase generally upon each renewal date. Also remember as well that some policies require a medical examination to attain the best rates.

Benefits and features

Not all policies come equally. You want to find a policy type that is suitable yet covers a broad spectrum of uncertainties for your personal or business-related needs. A policy in which covers the most features. Something that is overlooked massively when choosing an insurance policy is not only features but the terms and conditions that come with those features. All might look good upfront on paper or when taking up the policy, but it might not be the same come claim time. Whilst choosing a policy it pays to look carefully at the criteria that must be met in order to make a claim. Some covers are set up in such a way that the policy might be affordable and cover everything you want but are so impractical when it comes to claim time that the probability of a claim being processed to fruition is negligible. The key takeaway is look through the fine print on meeting conditions.

Provider options

Having a range of options for an insurance policy means that sometimes features cross over from product to product. Can you take one policy and save on another by combining two policies into one saving you in the long run. Do you have separate providers for different insurances, or do you have one combined package that sets you up with a reduced overall cover to save on premiums. A company rating, reputation and track record is a good way to gauge confidence in your insurance policy. So, doing your due diligence pays when finding the right terms. That is where a good insurance adviser can do the background research and get you great conditions for your policy.

Claims history

This area is overlooked too often, but it is important when deciding on a policy. Company claims records indicate how likely a policy is to be paid out. This will give you an indication of a company’s pay-out ratio on certain policies in the unlikely event a claim is made. However, it is very important in the event you are to process a claim because this will also indicate how smooth the process goes when come to claim time. A reliable broker can liaise appropriately on your behalf and help you navigate your way through this sometimes unsettling and stressful time to help you achieve a good outcome.

Adviser relationship
And finally, probably the most impactful and most beneficial component of any insurance policy is one in which the right insurance adviser has been selected to review and find the best policy for you. Choosing the right insurance adviser gives you a much better chance of a better deal and gives you options when it comes to claim time. Carefully selecting the right insurance adviser can give you a broad spectrum of choice to find the best policy for your needs. A good insurance adviser can not only have a large database to compare policies from varying companies they also can navigate their way through terms that are more appropriate for your unique situation. If when selecting a policy, you are only shown a few options it is relatively straightforward to select a policy. However, if you look a little deeper with an experienced adviser who has helped a diverse range of people you will start to see trends. A good company track record and good adviser relationship will stand you ahead of the rest.

There never really is a poor time to look over and review your insurance covers. For a quick review of your options, you may be able to identify ways to shape your policy or take advantage of some additional features you may have not thought were necessary.

Talk to the experienced insurance team at Global Finance they can recommend the perfect suite of insurances to protect your health, your wealth, your life and your family. Call Global Finance today! 09 255 5500