Insurance products are by nature not quite as simple as ABC. But no worries. We have prepared a checklist that would help you determine just what kind of protection, and how much of it, you need.
There are several ways to find and buy insurance to cover almost every risk you might encounter. They include:
Buying insurance directly from an insurance provider or your bank - either in person, online or by phone.
Using a price comparison website, which will compare the costs of insurance products from different providers.
How to compare policies and quotes
When you're looking at the insurance products offered by different providers, it can be hard to make a useful or meaningful comparison.
For example, one might offer a lower premium but include more exclusions, while another might provide a broader scope of coverage and a larger benefit amount, but at a higher premium.
How do you go about selecting the right policy?
Start with the basics - make a list of all the key elements of an insurance policy, the terms and the benefits you actually need, or want.
Focus only on the policies that provide essential coverage - look for insurance plans that offer all the protections you consider essential. Anything else offered can be considered a bonus.
Consider what isn’t included - in many ways this is more important than what is covered. For example, your travel insurance policy might carry exclusions relating to pre-existing medical conditions.
Now make your final selection based on these 3 criteria - price, payment terms and, often overlooked, the provider’s reputation in the eyes of its existing customers.
Reputation matters
While price may be a deciding factor when it comes to choosing insurance, it's a good idea to check out a provider’s reputation before committing. There are plenty of review websites that will give you genuine, honest and unbiased reviews from a provider’s existing customers.
You might want to find out:
What percentage of claims are settled without challenge?
How easy is it to make a claim?
How quickly are claims settled?
How satisfied are the provider’s existing customers?
Increasingly, people want to be reassured that their money is going to organisations whose values are aligned with their own. Paying a little more to insure with a brand you value and trust may be more important to you than going with the provider offering the cheapest coverage.
That’s why you may also want to do a little research about a provider’s ethical or environmental credentials before committing to them.
A few things to watch out for
Always check the details of an insurance quote You'll want to make certain that it suits your individual needs. For example, can you pay in monthly instalments? Does it offer grace period if you need them?
Make sure you provide accurate information Answer any questions asked honestly when applying for a quote. If you don't, there's a chance that a claim will be rejected or reduced in value.
Remember to update your policies Your needs will change over time and you are usually required to inform your insurance provider of any changes to your circumstances. If you don't, your subsequent claims may be rejected.
Review your coverage from time to time Since your needs will evolve as you enter different life stages, like getting married, moving in with a partner or starting a family, it’s always a good idea to review your coverage regularly to ensure you and your loved ones are adequately protected.
We provide a range of useful tools to help you evaluate your protection needs, including the coverage calculator below. Try it out and see for yourself how convenient it is!
