How Do you Know What Insurance Is Best For You?

How Do you Know What Insurance Is Best For You?

Insurance is important. But not every insurance is suitable for every life situation: Singles need different policies than families. Those who are well informed before signing a contract can save a lot of money and trouble.

The essentials in brief:

  • Liability insurance is essential for everyone.
  • You can usually do without policies that only cover minor damage.
  • Before concluding or expanding a contract, offers from several companies should be obtained.
  • The choice of further insurance protection depends heavily on the individual life situation.

On average, American citizens and other developed country citizens spend more than 2,000 dollars a year on insurance. However, many people are by no means well-armed against damage or loss. It is crucial that your insurance coverage is regularly checked, adapted to your life situation and that risks that threaten your existence are properly insured.

Policies That Everyone Needs

The insurance coverage should always insure the most serious assumed accident. This means that the “greatest assumed accident” must be covered in any case. In any case, this includes the conclusion of private liability insurance insufficient amount: Anyone who causes damage to others must reckon with claims for damages. And that can be expensive, and in extreme cases even threaten your existence. 

It also makes sense to insure your household effects, since many private households cannot cope with a new acquisition, for example after a fire, significant water damage or if inventory is devastated after a break-in.

Individual Protection

Anyone expecting children, for example, should think about additional protection for the family. Term life insurance, for example, provides financial security for relatives in the event of their death. 

With occupational disability insurance, insured persons can protect themselves against permanent loss of earnings due to illness or accident. Anyone who owns a home cannot do without residential building insurance. As an addition to residential building insurance, it is also advisable to take out insurance against natural hazards.

Superfluous Insurance

You can dispense with policies that only cover minor damage, as is the case, for example, with luggage insurance. The loss of a suitcase can usually be easily replaced. Glass, death benefit and private unemployment insurance are also unnecessary. Extra equipment insurance for bicycles, cell phones, laptops or glasses is only worthwhile for extremely expensive purchases.

Always Several Offers

If an insurance policy is to be taken out or reassessed, an insurance broker is not necessarily required. Because insurance products are often also taken out that are unnecessary or more expensive compared to other providers. If you find out for yourself which insurance is available and which one you need, you save costs and trouble. 

Therefore, before concluding or extending a contract, offers from several companies should be obtained. Important here: Do not only compare the costs but also pay attention to an annual cancellation option and payment method as well as the scope of insurance and possible exclusions.

Additional Insurance: Who Needs What?

The choice of additional insurance protection depends heavily on the individual life situation. The following insurances are very important for the named groups of people:

Singles, married couples, registered partnerships, and conjugal unions

  • Health insurance
  • Personal liability insurance
  • Disability insurance

Family with children

  • Health insurance
  • Disability insurance
  • Personal liability insurance
  • Child disability insurance
  • (Children) accident insurance
  • Term life insurance

Single Parent

  • Health insurance
  • Disability insurance
  • Term life insurance
  • Child disability insurance
  • Personal liability insurance
  • (Children) accident insurance

Pensioner

  • Health insurance
  • Personal liability insurance

Tips For Taking Out Insurance

  • Any insurance coverage should cover the worst possible accident. These include death, disability and causing damage.
  • Before concluding the contract, it is essential to have all the insurance documents, including the insurance conditions handed over and read carefully.
  • Every policyholder has a right to consumer information. This also includes the instruction about the right of withdrawal.
  • A so-called product information sheet must be made available to each policyholder. This must contain the main contract points on the insured risk, premium amount, exclusions, obligations, duration and termination options and offers a good overview of the jumble of documents.
  • Never sign insurance applications immediately after speaking with an insurance broker. It is better to request comparison offers before signing. Help is available from insurance experts and the Bureau of consumer protection for insurance.

Final Words

Knowing the best insurance for us can be a daunting task especially when we don’t know how or where to start. It is best to perform research and ask questions to experts, friends and family who have taken a similar path. However, we hope you get your best insurance plan at a nice rate. 

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