How To Get the Best Out of Your Insurance Plan28 Apr 2021
Insurance has become a necessity to shield us financially from unforeseen loss or damage.
As this is a long-term investment for financial security, you will want to make sure you get the most out of your protection plan. But with so many types of policies in the market for different purposes, how do you ensure that you’re able to maximise the value you get out of your coverage?
It is going to take a little time and research, but the following tips can help:
1. Choose the right plan with the right coverage
In general, a life insurance plan is recommended for all, even if you’re young and single, and especially if you have a family or people who depend on you for their financial needs.
Another must-have is medical and critical illness insurance to shield you against healthcare costs that are becoming increasingly expensive.
Learn more about the different types of life insurance here, as well as health insurance here.
When you are planning your insurance portfolio, the most important factors to keep in mind are your age, income, lifestyle and number of dependents. These will help determine the types of plans and amount of coverage you need.
2. Understand what your policy entails
Once you sign on the dotted line for your insurance plan, you’ll receive either a physical or electronic copy of your policy which spells out your coverage in detail.
Be sure to review the document for important information such as your beneficiaries, the sum assured, the benefits you get, the duration of your coverage, and other terms and conditions. Take advantage of the 15-day free look period for this, and if you are not satisfied, you can opt to cancel the policy and claim a full refund of your premium with no penalties.
Source: Dawson's Creek
3. Make sure you can afford the premiums
Insurance is for the long-term. Hence, premium affordability is important to ensure your policy remains in force so that a lapse in your coverage can be avoided.
Keep in mind that higher coverage and higher premiums go hand in hand. Premiums will also increase with age, so the younger you are when you sign up for a policy, the more affordable your premiums will be.
Take stock of your financial commitments such as food, transportation and credit card debt. Do also consider your long-term goals (eg. buying a car or a house) and think about how much you will need to set aside for these.
Once you have those numbers figured out, you’ll be able to decide on how much you can comfortably pay for your premiums each month.
4. Keep your plan up-to-date
Insurance isn’t something you purchase once and forget about. Because life happens, and your circumstances change as the years go by. So it’s important that you keep your protection plan updated to ensure your coverage remains adequate.
Schedule a review of your policy every year with your insurance agent. It may seem tedious, and there may be years where nothing much has changed. But doing so ensures you and your loved ones stay protected. Reviewing your policy also serves as a check against being overinsured, so that you don’t pay high premiums unnecessarily.
If all of this seems overwhelming, you don’t have to do it alone. Help is always available from one of our Gibraltar BSN Agents who are more than happy to assist. If you’d like us to get in touch, simply leave your contact details here.