“Financial peace of mind” is a phrase we get to hear very often but many people don’t really understand what it actually means. If you think it means lying on a pile of cash, added zeroes to your bank balance and a couple of extra cars in your driveway, you are quite wrong. If someone is sure of a roof over his head, a continuing stable income without debts and a way of meeting daily expenses for the rest of their life, do not underestimate it as nothing lesser than financial peace of mind. Knowing you are going to be okay even after you fall ill, get unemployed, injured or lose something you hold dear, are much greater concerns that are worth thinking about. It is always a good idea to plan long-term. Taking in account the present status of your finances along with the living standard and expenses, predict a rough value of your bank statement so many years fast forward. Do you like it?
If you are considering to plan for a safer financial future, its safety is uncertain without the consideration of a couple of necessary insurance policies in check. It is an important element that can make any financial plan sound and stable. If you have lived in distress who says you cannot die without a thing to care about? Financing and insurance safeguards the individual interests of everyone while playing a massive role of contributing to the economic growth of the society in general. While you are at ease, it is your money that is being used around functioning for profits and also reducing your uncertainties against unforeseen events. Choose safety over uncertainty.
Are Insurance companies your friend?
While insurance can be viewed as a social tool that helps to reduce or eliminate risk of loss to life and property Insurance, it is a tricky business. You cannot just believe whatever the companies throw your way. Let them convince you well because they need your money to keep their thing running well. But make sure their services are in line with the insecurities in your priority list. Insurance companies can be very helpful at times of need – a friend indeed but you still need to keep your senses in place. There are so many companies, each with own way of handling customers with new quotes and terms. While some may seem worthwhile because of the long list on covers they offer, you can only be sure if they all are easily claimed without much hassle.
Loyalty and trust always work two ways! Many people try their luck by acting smart for a handful of cash out of the company’s bag while others stay loyal with the policy of the companies. Once the insurance companies know you are here to stay, they offer perks to strengthen their bonds with you. While it varies from company to company, the most common are discounts offered after a certain number of years with the company, which may increase the longer you stay, and deductible reduction or even waiver after a set number of years with the same company.
Why do you need insurance?
Why does anyone need insurance? Because why not. If you have means of paying for the rest of your living in case you fall ill, lose a job, lose a business or lose any limb, certainly insurance is not meant for you. But for anyone who answered no for even one of the above conditions, insurance is the best option to bring an end to their concerns. Every day you are exposed to a risk of natural calamities, road accidents, unexpected medical conditions and the risk of losing the things you cannot imagine living without, including your loved ones. Some risks are inevitable, impossible to avoid in any way, known as systematic risks and others are unsystematic risks that are measurable, predictable to some extent. Prone to all these risks on daily basis, it is best to consider possible risk management technique like a long- term financial plan or a suitable insurance policy. Some of these questions are enough to make you rush for the nearest insurance company you can find. What happens if your teenager wrecks the car? What happens if your spouse dies prematurely? What if you’re sued when your dog bites the neighbor’s kid? What if your home is destroyed by a flood or earthquake? The list could go on and on. Insurance is designed to help you when can’t afford to bear a certain risk personally. Successful financial planning can eliminate, minimize, or transfer the risk of all your anticipated bad outcomes to your insurance company.
Types of policies and their cover
You will be amazed by the specific insurance types available in the market other than the usual ones you have always heard of. No need to feel guilty if you are thinking to get even the strangest thing insured because chances are they would be available by any insurance company. Celebrities go to extremes and get their smile, voice and legs insured in case they lose them so don’t feel bad if your head spins every time an intelligent looking Mr. knows-it-all explains how you cannot survive a day without certain types of insurances. It is purely based upon your own assessment whether you a policy is applicable for you or not. Facing trouble making the right decision? Try Agoda to compare insurance companies and finance options for your home, health, car, loan, education and other savings. When you are investing your money, make sure you make the most out of it. By using RinggitPlus you will stay updated with the newest offers by companies and ideas to all your financial concerns.
The must-buy insurance policies and why
For each individual the items on the priority list might be numbered differently, but there are certain things that come as being most important for almost everyone – health, home and life. You might not know what kind of insurance you need until something has gone terribly wrong for your bank account. It is better to buy insurance for the most unavoidable circumstances in life like health issues and disability due to aging or accident, life insurance, auto insurance and house insurance. Assess your life and your needs and think about what you must protect. You may need to consider the following types of insurance.
1. Disability Insurance:
Did you know there is a higher probability for you to end up in a bed or wheelchair than in your grave? You are earning well, own a big house and the latest model car while a family that depends on you for the living but all this can become a big question if you fail to work again. In such cases insurance companies offer help to maintain your usual lifestyle by taking care of the bills and daily expenses. Some companies offer a short term plan that is like an income replacement protection that pays for six months from the time of disability. It is usually for a short term disability that is expected to heal. For very unfortunate cases like a long term disability, companies offer other prolonged covers.
2. Health Insurance:
In a country where the medical bills can claim a big share of your fortune, health insurance is a wise decision. Whether it is an appointment at a dentist or your routine health scan, companies offer different packages that cover expenses related to healthcare.
3. Life Insurance:
General public is drastically underinsured in the event of premature death. The worst thing about accidental and untimely death is that you do not get any time to manage your affairs or provide any means of a stable sustenance for your family after you. Life insurance is for the love of those you leave behind.
4. Homeowners insurance, for renters and owners
Homeowners insurance allows customers to rebuild or refurnish homes after any unfortunate natural disaster or a mishap. Unless you increase coverage, most policies cover the contents of the house for 50% to 75% of the amount for which the house is insured.
5. Auto insurance
For auto insurance, the company has the liability for damage or injury caused by you or someone driving your vehicle. The cost of auto insurance varies greatly, depending on the company and agent offering it, your choice of coverage and deductible, where you live, the kind of vehicle, and the ages of drivers in the family.
Things that make an insurance valuable
You owe it to your interests and the love of your family to make the right choice when it comes to buying a policy that offers covers that are just right for your concerns. It is necessary to obtain and maintain dealings with an insurance company that is financially secure and ready to help you with quick cash fix. No matter how long the list of quotes and perks by the company at the time of buying, the policy is useless if the company isn’t around to pay claims when required to. Always be a customer who is well informed and right on track with the necessary research before going in a talk with the company. You must what areas to closely look at and what questions need satisfying answers before you proceed. Here is a checklist to follow:
Find a list of companies with great reviews about the quality of service
Compare all the companies for the pros and cons of each
Study the financial strength of the chosen company
Study the claims, payment history and customer service ratings
Read each and every clause of the document and make sure to ask a lot of questions
Do not get intimidated by the business-looking people. You have all the right to ask questions because they want your money
Invent situations of possible mishaps and inquire if they are covered
Present scenarios in which you might claim in the future
Present examples of other policies and inquire how they can beat to it
How to make the most out of your insurance?
If there is a long list insurances that you have bought, making a list of all the policies makes sense to help you keep track of all. Make sure all the documents are in their place if the day comes that your life insurance policy gets activated. Imagine having to gather the long list of information required by the company if you get in a car accident. It is always wise to list down the important points and secure it a place that is easily accessible at the time of need. Following are a few things that can make the most out of your insurance:
Summarise your life insurance policy for the survivors
Make copies of a list of all the insurance policies for your record
Secure the number of agent and the company details so that they are on your speed dial
Information like the amount of annual premium and coverage should be on your finger tips
Write down the location of the will and the contact details of the trustable professional for legal details