You should always have insurance. The question is what kind? You need a Home Insurance policy so that your home is protected in case of fire or theft. What about car insurance? That is a totally different story, as the home should always be the first thing covered. Also, the cars on the roads should always be covered by comprehensive car insurance. But what about health insurance? What about disability insurance? Here are some questions to ask yourself before you choose a provider.
Here are some points why you need insurance:
- Financial Security
- Secure Retirement
- Encourage Saving
- Tax Saving Purpose
- Peace of mind
Financial Security
Financial security in insurance refers to the monetary safety of the policyholder in case of an untimely or unexpected death or permanent total disablement of the policyholder in the absence of adequate life cover. It is one of the most important aspects in the life of the insured and his dependents.
Financial security in insurance is a very important concept, for many people. With the advancement in medical technology, the safety of dependents has changed drastically. The insured’s life has a defined safety net that’s in place. In case of the loss of the insured, his dependents will be taken care of by insurance policies.
Secure Retirement
A common point of contention in the financial planning industry is the advice for retirement planning. Simply put, many people seem confused about retirement or are not even sure what retirement means to them.
In retirement, everyone wants to be able to retire with some semblance of a comfortable life. Whether it be being able to afford to retire, having the desire to travel, or having the urge to do a few new things with time, retirement is about the freedom to pursue new adventures.
Many of us have heard that one of the best ways to prepare for retirement is to begin investing in individual retirement accounts (IRA). However, for many of us, this means shelling out a large sum of cash and investing it in stocks, bonds, and other assets that might be unfamiliar to us.
Encourage Saving
Every individual must make a note of an insurance policy that’s good for their health, protection, and valuables. Many insurance companies give lucrative discounts to anyone who buys insurance. There are also many types of insurance products such as individual policies, group insurance, motor vehicle insurance, travel insurance, health insurance, health club membership, and many more.
Saving money and building wealth in the long term is the ultimate goal of all investors. That can be a challenging task to accomplish, however, given the complexities of investment markets and the way the investment community communicates with clients.
Tax Saving Purpose
Here we are, almost at the end of the year. And it seems like there is still lots to accomplish before the New Year. In addition to trying to be a little bit more healthy, save a little bit more, or just relax, many people are giving some thought to end-of-year purchases. One item that often comes into play in end-of-year sales is insurance. Insurance is an essential part of the end-of-the-year mix as many consumers make purchases before the end of the year.
Tax savings are just part of the tax saving purpose in insurance. If you are purchasing insurance in the next few days, you will be doing so in the hopes that you will be able to save some money on your tax return.
Peace of Mind
Does your business really rely on you or someone working there to stay insured? Can your insurance needs be met without your own knowledge, employment, or even a valid automobile? Or maybe your business is just too small or risky to involve its owner in the coverage it takes to protect your business. Either way, you need peace of mind, that the person or company you entrust your livelihood to will remain fully insured.
If you have insurance on your rental property, your vehicle, or your rental equipment, you may feel tempted to stop using them or their equipment. You may even think that any income from these items is likely to be completely gone when your property is repossessed. In my experience, the opposite is true. You might have to sell some of the equipment and rent the remainder until your business stabilizes, but eventually, your income will pick up, and your former debts will be paid off.
Points to check before buying any insurance
Can You Afford It?
It’s a common misconception that everyone can afford insurance. But remember that not everyone will be covered for each and every kind of medical event, and that can lead to financial problems. One way of measuring if you can afford it is to look at how much insurance costs on your monthly budget. You can do this with any health insurer that offers plans for a standard or higher deductible. But you should also compare the cost with other similar insurance plans that offer similar coverage and exclude the excluded coverage. This will give you a fair idea of whether you are covered for what you are paying for.
Do You Need the Coverage?
Next, does the policy cover the things that you need it to cover? You should read the details carefully, and if they do not cover your particular problem, then it’s time to move on to a new plan.
Can you get it for less than you expect?
Sometimes, insurance companies offer multiple plans that might work better for you. For example, you might be able to pay less for a plan that covers more than just car insurance, or that has a lower deductible. If you do your research, you might be able to find a good deal. But if you are surprised to discover that the policy you wanted to purchase costs more than you expected, it might be time to seek out another provider.
Who’s Supporting You?
Another important question to ask is whether your policy is provided by a small company or a large company. A small company might have low costs but that might not be the same with quality. A larger company, on the other hand, might offer better service and perhaps better discounts on services. One way to get a sense of what you get from the company is to call the customer service phone line and see if there is a sales representative on duty. The rep should be able to answer questions about the company, services, and policy details. If there is not, you should move on.
Your carrier should be more than willing to answer any of your questions. You can talk to them online or by phone, and even by email or text message.
Services that you get with the policy and services that you get elsewhere are often quite similar. So when you decide which plan works best for you, consider all the factors that you considered above, and you will have a better idea of what your options are.
Also, before buying any insurance check that the insurance is from a reputed company. As there are many insurance frauds going on. You can also complain about insurance fraud.
Considerable reasons why I need insurance 🙂