When you are into the game of investments and making money work for you, you definitely want to look at various ways to protect your money. Insurance is one of the most basic ways of creating a first barrier to any setbacks. But don’t kid yourself. Getting insurance protection is more than just calling up an agent and ask to buy protection coverage.
To assess whether you need more detailed help on this area, here are some tough questions that you should ask yourself. Be frank and answer them as no one is going to know your answers.
Do you truly understand the types of protection you have, the individual coverages, and the limits and terms of each policy your are subscribed to?
Are the policies you currently have specific to your financial situation and asset classes or just general plans that people can buy off the shelf?
Should something happen that leaves you incapable of generating an income, will you be covered in the long term?
If you are the main income earner in the household, is your family financially protected if you die?
Do you have enough liability coverage that protects all your assets?
The more “no” you answered, the more you need to review your current policies. If all that is needed for one to have a savvy plan to protect his assets, then there is really nothing unique with your financial position. And since you are on a journey to manage your finances properly and get out of the rat race, you want to get insurance plans that are customized to your needs.
Before getting into the nitty gritty of getting an agent to customize a solution for you, remember the basics of buying insurance.
Always shop around. All insurers are selling the same thing which is coverage. It is not a surprise that one might offer the same amount of coverage for less premiums. Only be shopping around would you be able to discover where the best deals are.
An insurance agent is not a real friend. Sure you might make a good friend out of the agent. But don’t think for a moment that all they care about is you. Because if that is the case they would send their fat commission checks to your mailbox instead of their own bank accounts. Agents work for their commissions by selling stuff to you. So be careful on what you are buying.
Only get what you need. We buy things that we don’t need all the time. It happens most often when products are put together in a package. Meals in fast food restaurants are the best examples. Because at the point of purchase where you have your wallet out, it is the optimal time to ask for more sales. Remember to only buy what you need. Extras can look attractive. But they are usually not essential.