five tips on buying insurance

​Each month I like to write about something useful around insurance. After all most people spend a reasonable amount of income on insurance. This month it’s abbreviated from an article I read recently.

Five tips for buying insurance:
1.Shop smart.
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.

2.Look for discounts.
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your adviser/broker if there are any discounts on your coverage. You can save money by “bundling” multiple policies, such as purchasing a home and vehicle policy from the same carrier.

3.Fill in the gaps.
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

4.Purchase life insurance—you aren’t too young.
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have children, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.

5.Talk to an independent adviser
An independent insurance adviser is an essential resource when purchasing insurance—especially if this is your first time. An independent adviser works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. 
 
Working with an independent adviser can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from the advisers knowledge; they know how to talk you through your options and actually explain what each policy includes. Let us know if we can help.

This blog is general information only. For specific advice in relation to your circumstances a Licensed Financial Adviser should be consulted