Insurance is a major part of our lives and important in our financial planning. Although insurance is so important it can be very difficult when trying to understand, and even more difficult to find the right package. There are so many different types of insurance, when it comes to trying to get your head around it all it seems almost impossible. Some people make it easier by seeking the advice of an expert; an insurance advisor, broker or sales representative. Whilst these are good ways to get advice, the above list of people have, in some cases, created a bad reputation which leads people not to trust their advice.
It can be difficult to trust people when you’re buying such important product such as life insurance. You don’t know the type of training that the sales representative has received to if she/he is selling you a product just to make commission. Here are some good tips to follow when you’re trying to find the right insurance at the right price:
1. Understand what you need
No one knows or understands your financial circumstances as well as yourself. This means that you should try and avoid letting someone tell you exactly how much cover you need. It’s quite simple for you to work out a rough estimate of what you need – add your debt, estimated funeral costs and six months to a year of income replacement. Remember sales reps are there to sell, understand fully what you need before chatting to one.
2. The difference between term insurance and permanent insurance
Understanding the difference between these two types of insurance ail help you make an informed decision. Do you need term or permanent Life Insurance? A term insurance will usually cover most of your debts and financial needs. This may mean that you don’t need to purchase a whole life policy. Sales reps will usually make more commission if you choose a whole life policy – you must make sure you choose what’s right for you, not what the rep is forcing on you.
3. Compare prices
It is always an idea to compare the price of similar products. So it’s good to take a look around and see is you can find similar products and their prices, this way you’ll be able to tell if you’re getting a good deal.
4. Use your free 30 days
You will be given 30 days to to take a look at your policy, study it and make sure you understand it. If you are not happy in anyway during this 30 days, then simply cancel the policy and your premium will be returned to you.