5 Questions You Must Ask Yourself Before Buying Insurance for you and your family

Have you ever woken up suddenly in the middle of the night worrying about the future?

Most of us have done that, and it’s a sign. It’s a sign that you must consider doing something to safeguard that future. When you’re running a small business, the onus on you is even greater. This is your livelihood. But it’s also what puts food on the plate of the people that work for you.

You see, the future is uncertain and preparing for possible off days while you still can is just smart!

You can do several things, such as save money for that rainy day or create alternate sources of income. However, the first thing that you must do is to get yourself the appropriate insurance cover. That holds true for securing the future of you and your family as well as for your small business. Let’s focus on the insurance cover you should get for yourself in this post.

Many people have an array of questions in their mind while considering an insurance policy. And that’s only fair. But some questions are more important than others. Some questions hold the power to uncover just that right bit of information relevant to your insurance purchase. These questions clarify rather than confuse. They make your decision easy.

So are a few questions that many ask themselves before purchasing a policy and which you must ask yourself too.

5 questions to ask yourself before buying insurance[i]

  1. How much insurance do I need?

The objective of buying insurance is to protect your family and ensure they are provided for in case something untoward happens to you. So, how much is enough? Calculate the expenses that you incur currently, add in an estimate for the major events such as your child’s college tuition or wedding that may crop up later in life. Account for a rough inflation rate. Then add all that up to get an estimate of what your insurance cover should be. The aim is to ensure that your family can have the same lifestyle even if you are not around.

  1. What events does the insurance include and exclude?

You need to fully understand the fine print of your insurance before buying it. Take the insurance for your home for instance. Many policies will provide for cover in case of fire but may exclude damage due to floods. Similarly, other insurance policies may cover damage caused by a broken water main but may exclude mold or other damage caused by the persistent action of moisture. So, it’s crucial to analyze the insurance policy carefully before buying it to know what events are covered or excluded from your policy.

  1. What are my responsibilities for ensuring the insurance stays valid?

Every insurance policyholder is expected to adhere to a few rules laid down by the insurance companies to ensure it stays valid. Here are a few things you must follow:

  • Read the fine print carefully and get all your doubts clarified from your agent. Ensure that you are completely clear about your policy, so there are no shockers when you file a claim.
  • Be completely transparent about all the material facts as they stand when you take the policy.
  • Pay your premium regularly within the stipulated dates.
  • File a claim within the period mentioned by the insurance company. For example, if the insurance company has asked you to file a claim within seven days, ensure that you do so to avoid rejection.
  • Renew your insurance before the expiry date to maintain continuity.
  • Comply with the rules of the insurance company.

Ask your agent about your responsibilities to keep your insurance valid. The best insurance agencies will help you make sense of the terms and conditions and handhold you as you sign up.

  1. What is the process of filing a claim, and what evidence do I need to show to support my claim?

Sometimes a lengthy process of filing a claim can prove to be annoying, especially when you are hard-pressed for time. But knowing the process, especially the documentation needed, makes your filing convenient and straightforward with no hidden surprises. Specifically, ask your agent about the evidence that you need to furnish while filing a claim. For example, you may have to provide proof that you notified the police before filing a claim to address an incident of vandalism on your property. So, understand the process from your agent before buying the policy. Of course, it helps to have an agency that you can call and speak to at the time of filing a claim rather than try to navigate through the process yourself.

  1. What should I do if my claim is rejected?

Your claim may get rejected for several reasons. It is, therefore, essential to understand the redressal process from your agent. However, don’t rely on your agent’s advice alone. You may refer to the review sites or do a review among your friends and family to know if the insurance company offers the right kind of support and timely intervention when a claim is rejected. This is a crucial factor to consider while choosing your insurance policy. If the company’s redressal process is intimidating or opaque, you may want to consider other options.

So, here they are; five crucial questions to ask yourself just before buying an insurance policy.

Of course, there’s no need to remind you that an insurance policy is a valuable investment. It promises to protect you and your family at the time of their greatest need. So, investing time in researching the various available options and selecting the one that aligns with your future plans is just the right thing to do.