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What to consider when buying insurance

Nov 6, 2020 1:54:41 PM / by HealthCarePlus

Buying insurance is a big decision and can have huge implications on the quality of your life. That's why you should approach the decision in an informed and calculated manner.

This article aims to help you understand what you need to consider and take into account before you finally decide to sign the dotted line and subscribe to an insurance policy.


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Most people really only think about their insurance when a loss, injury or accident has occurred. This is the time you need financial assistance the most and your insurance company needs to come through for you, help you get treatment or provide a payout to get you back on track in life. After all, this is what you pay them for.


However for that to happen you really need to have put in the hard yards in first to make sure your policy is covering you the way you thought it was.


Insurance is complex and not all insurance policies are the same. It’s easy to compare two policies on price, but the cover you get may be very different. The cheapest policy isn’t usually the best cover for your needs, and it’s important to compare both the price and the level of cover.


So when buying insurance, you should always do your homework or better still, get an expert to do it with you


Be careful as the policy that is cheaper today may not be the best structure for you long term.  For example with Life Insurance,  your choice may come down to whether your need it  on a shorter timescale - like covering a mortgage or permanent - leaving an inheritance for someone.


A crucial point to remember is that your insurance policy is a legal contract and is legally binding to both the insurer and the insured (the person taking out the insurance). In the event of a claim it is the wording of the insurance policy (the contract) that will determine the eligibility, or otherwise, of your claim. It is up to the insured to make themselves aware of what obligations they have under the policy and also what obligations the insurer has.


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To find out how much Insurance you need, ask yourself these five questions first:

  1. What is the risk I would be insuring against?
  2. What are the chances of it occurring?
  3. What would happen?
  4. How much would it cost?
  5. Who would be Impacted?

By doing that you can work out what Insurances are most important to you when you’d be badly affected by a loss – even one that is not very likely to happen.


In addition to doing that, we have compiled a handy checklist and glossary of terms that can be found in our new Insurance Guide that will help you make better decisions and have better conversations about Insurance.


Finally, we have access to a nationwide team of Monument Financial Advisers*, so if you’d like to talk to one of them from your area, you can book a time for a free no obligation chat about your circumstances and what could be right for you:


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*For over 30 years Monument Insurance has been HealthCarePlus’s appointed business partner to provide financial advice to HealthCarePlus Members on life and health insurance. (HealthCarePlus is not legally able to provide financial advice).


Tags: Financial Resilience, Insurance