Top Factors to Consider When Getting an Insurance

An insurance policy is a needful financial coverage of your health, maybe your family’s too, life/death, car/house etc. the list goes on. It all depends on what you get the insurance for? Everyone aims to be covered by a solid insurance policy to safeguard their and their family’s living. 

So how can you ensure you find the policy that is just right for you? Read on, because you deserve to get the best value for your money to help with that load on your shoulders. Here are the top factors- not in order- to consider when getting an insurance policy, according to financial experts.

Coverage

“The number one factor you need to consider when buying insurance is the coverage amount: Will the coverage amount be enough to cover what it is intended for? If you’re buying life insurance, the coverage amount should be enough to replace your income, pay off the mortgage, send the kids to school and have your family live the lifestyle they are accustomed to. If you’re buying burial insurance, the coverage amount should be enough to cover your funeral, burial, and final expenses. Think about your purpose in buying insurance and make sure your coverage amount will be enough to cover what it is intended for.”

Randy VanderVaate, President & Owner Funeral Funds of America

Online Services

“One critical factor to consider when getting insurance is how easy it is to use your provider’s online services. While other factors like price and extent of coverage may matter to you more, it’s important that you can communicate efficiently with your provider and make changes as needed. Two examples are online bill pay and chat-based customer service, both of which are increasingly popular among people with insurance. Avoiding having to mail payments is a huge timesaver, and receiving receipts digitally makes it easier to scan your bill and ensure that all charges are valid. Instant online customer service is another huge time-saver. Finally, you want your insurance provider’s mobile app to be functional and usable. With more and more people depending on their phones for daily internet use, it’s essential that your provider deliver a good mobile option.”

Ann Martin, Director of Operations of Credit Donkey Credit Card Processing

“Getting insurance is the most practical strategy you will do. Despite its monthly dues, if you are equipped with different insurance policies when the time when you need for it arises, you will surely appreciate its importance. However, you still need to be wise when getting insurance. Here are some things you have to know: 

Does it Fit your Budget?

“Get only what you can avail. Insurance is a long-term responsibility, and you have to make sure you can comply with it throughout the whole duration. Do not think of just now; think of your situation also in the future.

Do you Need Everything in it?

“You have to be wise and check your policies. There may be some coverage that is already redundant, so removing one of them will lessen your premiums for sure. Get only those important to you and your lifestyle so that you are assured that all the money you spend is worth it.

Is the Insurance Company Established?

“Of course, you don’t want to partner with a company that will eventually use your hard-earned money without giving you the benefits. Make a thorough company background check and compare which companies are the most established. Yes, insurance is necessary, but do not make it your reason for being more complacent and grab whatever insurance companies offer you. Be smart and check everything because it will be your money you will use to pay them.”

Nick Schrader, Insurance Agent at Texas General Insurance

Background Checks and Due Diligence

“Once you’ve decided on a policy, you may want to do the necessary background check on the company in question. All life insurance companies have comprehensive information on their websites, which provides all the necessary information. The policy structure, customer service capabilities, network reach, online platform (in case someone wants to buy a term policy online), are some of the key things to look for. Review your insurance needs annually- As your needs evolve, so will your insurance policy. Perhaps you’ve purchased a new vehicle since taking out auto insurance on your primary vehicle, or maybe you’ve started operating a small business out of your home. When you have made a change, it is important to consider whether your policy should adapt to the new risk exposures.”

Linda Chavez, Founder & CEO, Seniors Life Insurance Finder

Consider the Exclusions of the Policy

“When getting insurance, be sure to check and consider the exclusions of the policy. Whether you’re getting home, life, or business insurance, the exclusions should always be a part of your considerations. Standard insurance policies do not cover many things, and you should know which one is not part of yours, especially if you need a certain coverage for what you need. If certain things are not included in the policy you’re getting, and you think you need those in the future, you can shop around for something else or ask your agent if you can buy the exclusions separately to get the most out of your insurance.”

Dave Herman, President at EZ Surety Bonds

Expect the Unexpected

“Approximately 1 in 3 people in the United States will need to take time off for health issues before they retire, and approximately 8 million adults have some sort of condition that limits or prevents them from working. As a society, it’s become the norm to plan for things even after death through options like life insurance. But we also need to normalize – and plan for – the fact that most of us will need to or have had to take time away from work at some point. But nearly half of US workers have no income safeguard. In a time where more and more of us work freelance gigs, side-hustles, and are self-employed, insuring one’s income is something that more young people need to think about now.”

Alex Williamson, CEO and Co-founder of Income Insurance Platform Asteya