7 Tips on Finding Affordable Insurance
Buying an insurance plan while you’re at your early 20s may seem like overkill. But if you’re the type of person who values your future and secures your current lifestyle, this decision could be one of the best you’ve done in your lifetime.
But before going any further, knowing the kind of insurance you want is a must. You should be familiar with the type and coverage extent that would be suitable for your situation. To get you started, here are some of them:
1) Life – it’s one of the most common (and not to mention, controversial) insurance types that people avail of. When you have this, your family or beneficiary will get funds when you leave the world of the living.
2) Disability – this can be classified into two (2) kinds—trauma/ critical illness and total and permanent disablement. With the first type, you will get a lump sum, in case you get diagnosed of any illness specified within the policy, while the second one also gives you a lump sum payment when you encounter an illness or accident that permanently disables you from working.
3) Income protection – This one is classified into two (2) types: income protection and redundancy. If you have the first one, you will be able to receive a percentage of your income in case you get sick and are unable to work for a while. As for the second one, it replaces a portion of your regular income, if you had been laid-off from work.
4) Debt – Categorized into two (2) types, this plan – as the name connotes – protects you from any financial liability. The first type is mortgage protection. It covers a certain amount of the mortgage holder in case he/she dies or is unable to pay due to disability. The second one is loan insurance. The terms are a bit similar to mortgage protection but this is designed to cover smaller personal loans.
5) Health– Another popular type of insurance, this is categorized into two (2) parts— elective surgical and comprehensive. The first one takes care of your expenses brought by health problems which require hospital care, while the other covers the primary health care costs, such as doctor fees and surgical/ hospital expenses. This type of insurance can also include full coverage dental insurance.
6) General insurance
- Motor vehicle – this is divided into three (3) categories: 1) third party – cover the damage you do to someone else’s vehicle or property, 2) third party, fire, and theft – covers for a third party and vehicle damage or loss caused by fire or theft, and 3) comprehensive – it covers all of the above and for accidental loss or damage to/ your vehicle.
- Home – covers accidents and losses caused by fire to your house
- Contents – this takes care of all the things that were damaged or destroyed by fire inside your house
- Travel – covers the costs of any accident incurred during travel. These include disruption of the trip, baggage loss, and money theft
By this time, you pretty much have a vivid idea on what type of insurance you’ll need. However, the lack of decent fund is one of the most evident reasons why a lot of people don’t consider investing on this sort of beneficial coverage. For some people who don’t have sufficient income or worse, unemployed, paying for monthly or yearly premiums comes as a huge burden.
Finding Affordable Insurance
1) Use the Internet
As they say, let your fingers do the walking. It’s an understatement to say that a lot of stuff is available in cyberspace. In actuality, you’ll find what you’re looking for with just one click. So what are you waiting for? Start searching for affordable insurance companies in your area that offer a reasonable coverage which you should have no trouble paying.
2) Speak to an agent
Once you’ve chosen a potential insurance company, contact an insurance agent and request for some assistance and possible quotes through the phone or email. You should also provide the agent with specific information so he/ she can help you further with the type of policy you’re interested in.
3) Identify the type of policy that works for you
As discussed on the earlier part of this article, there are various insurance plans you can choose from, you just need to know the kind that works for your situation and budget. When you have decided on the type, the next thing you should decide is the coverage policy you will own.
4) Request for multiple quotes and available discounts
Now that you have received various quotes for the insurance policy you need, check for all available discounts that can be applied. Note that insurers have a lot of discounts available for each type of insurance policy they offer. If you only look at the policies of a couple of different providers, you may find that one is cheaper than the other. However, there could be a dozen others more affordable than that, and better-suited to your needs and standards.
5) Study the coverage guarantee
Choose only non-cancellable, guaranteed coverage. In this way, you can be confident that the provider of the insurance plan cannot cancel your policy just as long as you continue to make your regularly scheduled monthly payments.
6) Request for a trial period
Look for a 10-day rescission period – it involves the day your policy is activated down to the 10th day of the assessment period. Through this, you can make sure the plan you got is everything you want and need. Just remember, as long as you’ve canceled the policy before the end of the trial period, you should still get your premium refunded.
7) Don’t be afraid to ask questions
To avoid having misguided understanding on the policy you’re going to avail, you should insist on getting those terms clearly defined. At first, it may seem as a cheap insurance plan, but as a client, you deserve to know exactly what’s covered and what’s not on the plan. If the provider presents vague definitions, move on, since there are plenty of providers with clear details of their coverage.
If you’re still one of the people who base their future on every paycheck, this may be the proper time to think twice and take action. Find a decent yet affordable insurance plan— may it be car, health, or life – that will seal your future in a good disposition.