What insurance do you need and why?

In the quest to fulfil our daily needs and face the demands of our busy lives, we often forget that life is short and tragedy can strike at any time. Sure, when we get into bad situations, we can rely on family, friends or ‘nice strangers’ but insurance is probably the best avenue to provide financial relief. What insurance to buy, where to buy it and how to choose the right insurer are frequently asked questions which can make it sound complicated.

While most people have heard of insurance, they generally do not understand how much they really need to have some form of insurance cover or another. When it comes to the necessity of getting insurance, people only think of car insurance and end it there, not considering the value of having other areas of their lives insured against eventualities.

The biggest misconceptions are seen through comments such as “It’s too expensive,” “I’ll never use it,” “Nothing will happen to me” or “God is all the insurance I need.” This is very short-sighted as we all know good people around us who have been struck by difficult life events, whether it’s a car accident or a stroke, and in the bigger scheme of things, you would be denying yourself and your family a chance to recover in the case of an eventuality.

To that end, whether you’re planning for your retirement, the future of your loved ones or putting money aside for unexpected events, having adequate insurance cover is as essential as the life you’re living. Here are a few considerations you should make to help you secure the assurance of a successful and worry free life that having insurance can give you.

Which insurance should you buy?

Nowadays, it is possible to be insured against all sorts of risks. But, it may not be necessary to cover yourself against all risks. Getting the insurance you need is as simple as identifying what is important to you and what you want to protect. You probably don’t need to spend a lot of money to get insurance, but you do need to make sure you have adequate coverage against common eventualities.

  • Car: Imagine you get into an accident with another vehicle. Every car insurance protects you against damages and injuries you cause to others (the technical name is third party insurance). To also have your own car fixed by the insurer, you need comprehensive insurance. An added bonus of buying comprehensive is that you get your car fixed even if you are hit by an uninsured driver.
  • Home: We all know of electrical faults, high voltage or air conditioning units causing fire in a house. Buying home insurance is a great idea as it pays for repairs or replacement if you suffer loss or damage to your home or contents. This will save you from having to buy a new tv, fridge or computer.
  • Health: You should leave nothing to chance where yours and your loved ones’ health is concerned. To be fair, most people can pay out of pocket for routine illness but when it comes to serious trauma or illnesses that require surgery, hospitalisation or foreign treatment, the costs can quickly rise up. Having insurance could save your life.
  • Life: What would happen to your family if tragedy struck and you are not here anymore to provide for them? Who will pay for your son’s well-being or your daughter’s school fees? The law requires your employer to provide group life cover. That cover will pay about 3 times your annual salary or more to your listed beneficiaries. Some employers don’t so make sure you check. If you are self-employed, consider getting life insurance; it is not that expensive and you can even use it as a saving mechanism.
  • Travel: Pays for repairs or replacement if you suffer loss or damage to your belongings. Travel insurance also pays for financial loss if there are delays or cancellations on your ticket and for costs related to personal accident while overseas including medical and repatriation expenses.

Where can you get insurance?

Once you have decided that paying out of your pocket is no longer the best option and you require the reliability and assurance that having an insurance cover can give you, it’s time to begin shopping for convenient insurance options.

In today’s world, you can buy insurance through a professional middle man/woman (agent or broker), by visiting an insurer’s office or going online. If your insurance needs are simple; just a car, for example, you can safely buy a policy online on your own, but if you’re buying health or anything that’s unique – you’re generally better off finding a good agent or broker to advise you and help you find the right coverage.

Agents represent a particular company and are therefore under pressure to sell that company’s insurance products, which may not be the most competitive. Because brokers are not allied to any one company, but can instead explore a whole range of products and services available on the market, they are best placed to offer tailored advice in your best interest.

How to choose your insurer

Because insurance is a product where quality matters but it’s very important to find you the right policy and the right insurer to suit your needs.

Here are tips on picking a good insurer:

  • Look for insurers with a good reputation of settling claims fast.
  • Seek only cash rich insurers that won’t fold up with your money.
  • Get personal recommendations from family, friends and colleagues.
  • Look out for testimonials & reviews on discussion boards, websites and social media.
  • Check the license status of providers from State/Federal Insurance regulatory body.
  • Inquire directly from agents or brokers. Don’t be shy to ask questions like:
    • How long have you been in business?
    • If I have a loss and need to file a claim, how will you assist me?
    • If I cancel the policy mid-term, will there be a refund?
  • Compare prices with us at Compare Insurance, we vet insurers and are there for you when claiming.

Kindly visit our website on www.compareinsurance.com.ng or call Sola on 09090004273 to get more information and help today.