First-Time Buying Insurance? Here’s What You Need To Know

Nothing speaks safety and peace of mind like having a handful of conversations with people who are trying to tell you that you may suddenly meet the Maker or have something unfortunate happen to you at a moment’s notice. Such is the experience of talking to an insurance agent, as far as we can tell.

Of course, we’re just exaggerating but this doesn’t undermine the importance of having a contingency plan for when something untimely happens in your life. After all, the game of life is predictably unpredictable.

That said, the world of insurance can be a daunting affair for most people and especially if you’re a first-time buyer. Complex jargon and confusing terms being the least of your worries, you’ll need to determine on your own whether or not a certain policy is a good fit for your personal lifestyle. However, the good news is that the insurance buying process isn’t nearly as complicated as it may appear to be. Whether it’s life, health, or car insurance, the entire process has become a lot easier today than it was during the days of yonder.

Here are some insurance tips, tricks, and information to keep in mind when you buy insurance for the first time.

Buying Life Insurance

With the massive number of life insurance options at the tip of your fingers, you may find yourself in a certain conundrum: Which one out of over hundreds and hundreds of plans should I buy?

The first thing you should then do is to question your needs before you proceed to select an appropriate plan.

What type of policy do you need? How would you find out about the amount of coverage needed? What are the best plans available that you can afford? Which insurers should be avoided at all costs? These are some of the important questions you’ll need to answer when you are buying life insurance for the first time.

Overwhelmed? Fret not, here are the answers that you should have in mind when you look at a particular life insurance policy.

  • Understanding Your Personal Needs: Everyone has their own personal circumstances to consider so you must be clear on the reason that you’re buying a life insurance plan. For some, it’s a tax write off. For others, it’s an investment. Though, the true purpose of life insurance is to provide protection for your loved ones once you are unable to.
  • Evaluate Your Personal Finance: Before taking the plunge, you should ascertain your premium payment capacity by considering how much you can comfortably allocate towards servicing the policy without cutting into your other bills.
  • Options, Options, Options: As we’ve mentioned, there are plenty of life insurance policies available in the market today. And each one is designed to fulfil different requirements or a particular need. You should read up on the intricacies of each before you make a decision. But we would recommend seeking an expert to find out what each type of policy entails in terms of benefits and protection.
  • Get Multiple Quotes: Just like buying a new home or changing your phone plan, getting quotes from different insurers for the same life insurance plan is paramount in order to get the best deal. Different insurers will supply insurance plans at a different rate for the same plan, so your role as a consumer is to always look for the perfect insurer offering the best premium to benefit ratio.

Buying Health Insurance

Similarly, health insurance has become a necessity now with the rising costs of global healthcare. Even getting minor medical attention can put a strain on your finances if you aren’t prepared. For first-time health insurance buyers, here are a few things to keep in mind.

  • Yes, You DO Need Health Coverage: We’ve said that life is truly unpredictable so it would bode you well to cover yourself especially as medical care costs have risen exorbitantly over the course of a few years. Worst of all, this trend is looking to continue in the near future — thus making health insurance more vital than ever before.
  • Know The Basics: To understand how an insurance plan works, it’s good to educate yourself on the basic terminologies and jargon used relating to said policies such as the premium, deductibles, co-payments, etc.
  • Work Out Your Monthly Repayment Plan: Likewise, health insurance premiums will definitely take a chunk out of your monthly take-home pay. As such, it is of the utmost importance that you figure out exactly how much (down to the cents) you can spare towards health insurance premiums. You can then get a plan that takes care of your needs while also being within your budget.

There are a few more things to note about health insurance plans, like specific add-ons or family floater/individual cover, but as a first-timer, you likely won’t have to know much more than just the basics for the time being. 

Buying Car Insurance

Depending on where you live, vehicles may be required to be covered by a liability policy before being deemed road-worthy. This local law makes it so that car owners, particularly new ones, will definitely need to know about how to buy car insurance before proceeding to drive on the road.

Thankfully, car insurance policies these days are fairly easy to comprehend which makes it easy for a layman to navigate through the terms and conditions. For others, here are some tips to purchase the perfect car insurance plan.

  • DYOR: Do Your Own Research (DYOR) is a concept that can be applied to multiple facets of life. In this case, it is important for you to carry out at least SOME research about the types of car insurance plans that are available in the market and which would fit your personal needs the best.
  • Determine The Claim Settlement Ratio: This would also fall under the DYOR category, but finding out the claim settlement ratio for a chosen insurer is definitely one of the most important parts of the insurance process. If the ratio is high, the chances of your claim getting honoured would obviously be higher. But the opposite stands true as well.
  • Always Compare Quotes: This tip applies to more than just buying car insurance. When you already have a particular car insurance policy in mind, the next step is to then get quotes from multiple providers to get the best benefit-to-cost ratio possible.
  • Take Note of Coverage Details: After you’ve decided on a policy, you should take note of the details of your motor insurance policy — the most important being the inclusions, exclusions, premium details, and terms and conditions. Lest your claim being rejected out of the blue due to one or more of the conditions not being met.

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