It’s safe to say that nobody who has ever had an Insurance claim paid out has ever complained that the premiums they were paying were too high. Certainly, when it comes to getting money quickly in a time of crisis, risk insurance is certainly more convenient and certain than having to sell assets, apply for a loan or know that you have sufficient back-up funds in your bank savings account. But knowing what Insurance you’re going to need is a difficult task, so how do you find out the right type and amount of cover required.
Your Insurance adviser will be able to give you an indication on the right level of cover at a price to suit your budget based on your needs should an accident or illness impact your financial wellbeing. Ideally they should have access to a number of different insurers products to give you options based on what’s important to you should disaster strike. The amount of insurance taken out is obviously reliant on your available budget, but rather than thinking how much can I afford to spend now, your decision really needs to be based on how much do I need for certain events?
But, knowing how much money is required to get you over the toughest times is just one calculation. What to insure against is another time when the crystal ball has to be polished up for you to have a clear view of what’s around the corner. While nobody can know for certain what health issues lay ahead, many Insurance companies provide data on what claims are made and what causes are the most frequently paid out. Across all insurers the statistics support the fact that Cancer is the biggest health issue leading to claims under Life and Critical illness. For disability income protection it is overtaken by Muscoskeletal and Mental Health Issues.
But it is not just a case of working out what to protect yourself against and for how much. Most Insurance companies are very similar when you put your application together. Complete an application providing a medical and lifestyle background, sign the forms, provide bank details and start paying your premiums. The worth of a good Insurance company and adviser helping you is what happens at claim time? Knowing that you have somebody fighting on your behalf to make sure the money goes to the right place at the right time will ease a lot of worry during an already stressful period.
But what about those who don’t believe in paying for Insurance? That’s their choice, but think on this;
In a perfect world, we’d all have 100% perfect health until passing away at a very old age of natural causes. But stop just a moment and think about your family, friends and work colleagues. How many people can you think of that have been affected by the death or serious illness of a relative, and what impact has it made on their lives. Think about your own health. Have you had perfect health your whole life? The vast majority of people go through something called the disablement process. This is the natural process whereby the older you get, the more likely you are to get sick or injured. It is the reason that premiums increase as we get older (We’re much more likely to make a claim) and the reason that you should think about setting up insurances for what and who you need to protect at every stage of your life.
