How To Choose The Right Insurance Plan For Your Needs

How do you go about choosing the right insurance plan? What’s a deductible, and what are premiums? What’s a permanent policy and what is a short term policy? Does this cover all my belongings or not? What about my car? My medical expenses? The list goes on and on and the questions do not stop.

Picking an insurance plan is hard. It takes a lot of time to find the right one and it may even take some trial and error before you get there. You may find yourself switching companies or rearranging the terms or asking for extensions - we’ll explain what those are - lots of revisions basically. Don’t worry though, since everyone has insurance, it can’t be that hard right? It is not. We’ll take you through how to choose the right plan for you.

Research

The all important factor that starts it all research. Specifically, market research. A lot of people tend to jump into the first insurance plan they see that gives them basic coverage for a price they think they will be able to afford over the months. They do not take the time to fully understand the terms, the extent of the coverage, how much they can save, if they can accumulate their premiums, if they can make any adjustments, and other very important factors.

It is very important to take your time with policies. The first thing you want to do is get a feel for what companies around you are offering. See their quotes, see the different tiers of packages they have and the prices they offer. See if they cover everything you want them to cover.

Do you possess lots of valuables? Do they offer coverage for that with home insurance or do they offer it up to a fixed amount? Does it cover your rentals if you need to move out, remodel, or need to repair your house? What about your medical insurance? Does it cover your consultations, annual checkups, OPD fees, and other related costs?

These are all things to consider. The bare minimum is very easy to get when it comes to insurance. What is hard to get is a plan that feels like it was tailor made for you, but with enough research and careful understanding of the offers around you, you can get it.

Getting An Advisor

If you want to get serious about your research then the next logical step is to get yourself an advisor. This will help you know what legal pitfalls to avoid, and it will help you out a lot in negotiations.

Advisors can tell you what a better deal is, cut one for you, or work with your broker to do just that. They can also inform you of nuances like what is covered within your insurance coverage, how to save the most, and how to customize the plan to suit your purposes and budget.

Advisors help you differentiate the useless from the noteworthy. They also help you with terminology and keep you informed as to what the terms you hear might mean and how they work.

For example, a plan might have a premium that you need to pay every month. You might think it looks affordable too. So you go for it, however, then it will have a very high deductible. That means that if, let’s say, the deductible is for $5,000, then you will have to pay that much before your insurance starts covering. That might not be useful to you if you regularly get small checkups and medical expenses.

Find A Good Broker

Brokers work as the middleman between you and your insurance provider. They know all your history, and they know your needs. Their job is to cut the best deal they can for you for the most reasonable price possible.

They do charge services, and especially good brokers will charge you more than others for their work. However, it is still worth thinking about employing one because you may end up saving a lot more long-term than you would have otherwise. Brokers have a lot of know-how, and they use this to get repeating customers which means they want to give you a reason to keep coming back to them.

Even if you have simpler, more conventional needs, it is still worth it to go get yourself a broker especially if you are new to getting insurance. You will get to see how all of it works and gain a better understanding.

Additionally, if you need any changes to your plan such as extensions on your coverage or property damage that you need to pay for, your broker can usually figure out the best way to navigate such stressful situations.

For people who want to be completely informed, hiring one is a must.

Do They Have A Good Claims Rate?

The company you choose to go for when it comes to your insurance should have a good claim settlement rate. This shows you whether or not the company actually settles most of the claims that customers file, and you want one with a high amount because it shows a good track record.

Think of it as someone having a really good credit-score, you would think they are credit worthy right? This is the same concept the CSR is the credit score. Except you aren’t giving the company anything besides your money, they’re doing a service for you.

Conclusion

With a lot of research, a touch of help from the right advisors and professionals, and a bit of luck, you can definitely find a plan that feels like it was made by God himself for you. It will help you sleep better at night knowing that in the face of unforeseen disaster, you, your family and your belongings are prepared.

Pick smart and pick right and don’t forget, you can always switch!