Life is so unpredictable that even the most elaborate savings plan might not be enough financial security for the average person. That’s why insurance was created and why the demand has been and will continue to be high as we push forward into late 2013.
You just never know. The point of insurance, regardless of the exact type, is to protect people from financial ruin. Although the payments are often spread out, they aren’t cheap, and it’s important to be both calculated and intentional with your selection if you choose to take out coverage.
Below is a straight forward mental checklist to go through that will help you narrow down not necessarily the exact insurance policy you should take out, but what your personal needs are based on risk and situation.
If you have a family, the need for a policy inherently grows. The last thing you want to happen is to find yourself as the guardian of a child with health problems that can’t get the care he or she needs. Secondly, you don’t want any care that your child receives to completely compromise your financial stability.
If you have children, you should literally do everything in your power to make sure your family is covered. Being a parent is hard enough, and without peace of mind, the duty can be hard to manage. Some questions to ask yourself:
-What type of coverage does my employer offer that might help with my family?
-What exactly do I want my family to be covered for?
-Will my children be driving? What about playing sports? Traveling?
There’s nothing more important in life than family. Knowing that your loved ones are safe can make your quality of life, and that of your family, much better. While some policies are astronomically expensive, not all of them are. Take your time and pick your spots. The only way to do that, though, is to know what your goals are before you actually lay eyes on any actual insurance plans.
While insurance will protect you for future issues, it’s wise to consider your health history and current standing with regards to mental and physical wellbeing. For instance, if you’re a diabetic, it’s critical that you focus on a plan that caters to long term issues. Similarly, if someone in your family were to have Cystic Fibrosis, it would be imperative that you have a premium plan to help manage the situation. Some of the concerns presented at this stage will be hard to think about with an honest perspective, but it really is necessary when you’re considering a commitment like an insurance policy. It could literally save your life, and your bank account. Some questions to ask yourself:
-How do you feel?
-How do the others that will be on the plan feel, both mentally and physically?
-Do you have any major issues within your health history?
-Did your parents suffer from any complicated illness or disease?
-Do you and your family get sick fairly often?
Without your health, you really don’t have much. It’s imperative that you carry out an honest health assessment of yourself and anyone else included in a prospective policy before you make a decision.
Before you take out an insurance plan, you need to have a realistic picture of your finances. Insurance is an expensive commitment that requires consistent payment. Your finances will determine the policy you’re able to take out, and it’s wise to shoot high, but not too high. You don’t want to smother your bank account with insurance payments if you don’t have the resources to do it. Some questions to ask yourself:
-What does my employment offer when coverage is considered, if any? If none, is there some coming in the near future?
-How much can I afford to spend of my monthly budget? Are there hidden costs I need to be aware of with a certain policy?
-Even if it’s worth it, how much will my new policy or policies affect my day-to-day life? Will I still be able to do the things I enjoy?
Money can’t buy you happiness, but it can buy you a better insurance package. My advice is to get the most efficient plan. This means aiming for the most encompassing policy you can afford, while simultaneously not putting your financial tank on fumes.
It’s unfortunate that not everyone has the means to buy insurance coverage for themselves and their loved ones. It really is. However, many people simply don’t properly analyze their situation and the options out there. If you dig deep, you’ll most likely find a plan that suits you.
Arlene Chandler writes about life insurance products from Suncorp.