Last Updated on March 2, 2024 by Asfa Rasheed
Three things are certain in life: taxes, death, and, wait for it…uncertainty.
No, really. Just think about it. Everything about life is uncertain. You can’t be so sure that you’ll be alive tomorrow. And if you’ll be, a loved one, a friend, or a colleague might not make it. You can have a job this minute, and the next minute you’re fired.
While there isn’t much we can do to stop life’s uncertainties, there are steps we can take to better prepare for them. Getting insured is one of those steps.
Continue reading to learn how to buy insurance and protect yourself and your loved ones from life’s unknowns.
Table of Contents
Know Your Insurance Needs
Everyone has different insurance needs. This is why the first thing to do before talking to an insurance company is to know your exact needs.
The good news is establishing your insurance needs is easy. Insurance policies are designed to cover specific events. For example, homeowners’ insurance is designed to protect a homeowner from losses that might arise when the home suffers damage.
As such, list down all the things you’d like to insure. Some of these things don’t have to be insured, but others, such as cars, must be insured.
The average person needs the following types of insurance:
- Home insurance
- Flood insurance
- Pet insurance
- Auto insurance
- Health insurance
- Life insurance.
Other additional insurance policies you might need depending on your risk exposure include disability income insurance and personal injury insurance.
Get Multiple Insurance Quotes
Now that you’re aware of your insurance needs, the next step is to dive into the insurance market and buy those policies. Not so fast, though.
First, it helps to know that some insurance policies can be purchased separately and others can be sold in a bundle. For instance, you might be able to buy auto and home insurance as a bundled policy. Or health and life insurance.
Bundling can be cheaper compared to purchasing separate policies. The latter means you’ll likely deal with more than one insurance company. Bundled products, even outside the insurance industry, offer substantial cost savings.
With this information, the next step is to get quotes from various insurance providers. You don’t have to go calling company to company to get quotes. There are online platforms that will take your information and give you quotes from multiple companies.
Another option is to work with an insurance professional, like this insurance agency. An independent agent will assess your insurance needs and shop around on your behalf, and help you choose policies offering the best value for your money.
There are many factors to consider before settling on an insurance policy. The biggest of them is the insurance company offering the policy. But with so many national and regional insurance companies in the U.S., it can be super difficult to settle on the right insurer.
How to Choose an Insurance Company
Whether you’re buying insurance on your own or getting the help of an independent agent or broker, it’s essential to know how to choose the best insurance company. Here are some of the top factors to consider when selecting an insurer:
Licensing
Every insurance company, including the national ones, must have a state-issued licensed to sell insurance in those states. Checking the licensing details of an Insurance Company California might not be the first thing that comes to mind, especially when you’re dealing with a well-known brand. However, it’s important to ensure that it’s indeed authorized to sell insurance in your state.
Choosing an unlicensed insurance company can have terrible consequences. Should you need to file a claim and they deny it, you might have no recourse. On the other hand, a licensed company won’t engage in shady dealings since its license can be revoked.
Company Reputation
You’ve probably heard horror stories about insurance claims. Some people have had to put up with bureaucratic and frustrating processes when pursuing a claim. Others have had to deal with denied claims.
While you don’t want to go through such experiences, the truth is insurance companies typically play hardball when it comes to meeting their end of the deal. They’re in the business to make a profit, which means they aren’t too happy to settle claims as per the clients’ wishes.
This doesn’t mean you settle for just any insurance company and hope for the best. Choose a company that has built a reputation for offering quality customer services. You want to be confident that should you need to file a claim, the insurer won’t turn on you.
Read company reviews on the web when you want to determine the reputation of an insurer. If a company has a ton of negative reviews, it shouldn’t be the one selling you insurance.
Cost of Insurance
Insurance companies price their insurance policies differently, but competitively. You want to choose an insurance policy that suits your budget, but you also don’t want to overpay.
Choose an insurance company that prices its policies reasonably. If it’s beyond what you can afford and there’s no room for negotiation, don’t shy away from looking elsewhere.
Financial Soundness
You purchase insurance so that you can have peace of mind. This will only happen if you buy insurance from a company that’s financially sound.
There are independent organizations that assess and rate the financial strength of insurance companies. Ensure you’re buying from an insurer that’s rated by these agencies.
How to Buy Insurance Made Easy!
Buying insurance isn’t just for the privileged. In a life that’s so uncertain, everyone needs to have various types of insurance, especially health insurance. If you’re currently in the market, this guide on how to buy insurance will help you choose the right policies from the best insurance providers.
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