Questions to Ask Before Getting Insurance

Insurance costs money. It therefore helps to think things through before signing up for a particular insurance policy. You don't want to be paying premiums for several years only to find out later on that it doesn't cover your needs completely. It's a waste of your time and money.

In this article, we are going to share with you a few essential questions you need to ask before getting insurance. By answering these questions, you will be more confident about the policy that you've chosen, since you know that you picked the right policy for you. These questions are...

  1. How much cover do you need? This is important because your answer to this will decide two major things: the price of the premiums you will have to pay and the amount of coverage you will get. Try to choose a policy that balances the two, so you can have adequate coverage at premiums you can afford.
  2. What types of activities do you engage in? The question covers not only the activities you do in your free time, but also the ones that you do at work. If you are constantly exposed to hazardous activities and environments, it might be difficult to find an insurance company willing to cover you. Those that are willing might charge you higher premiums compared to regular people who might be working on desk jobs, or in less-risky environments.
  3. Who else needs coverage? Insurance coverage isn't just for the main income earner in the family. For example, a housewife with small children might also need it if her husband is often away, since her children need her to be there for them.
  4. Is your policy inflation-indexed? Your $5 today will likely be worth less than it is 10 years from now due to inflation. It is thus important to choose a policy that is inflation-indexed to ensure that your benefits keep up with the rising cost of living.

These are just a few of the important questions you need to ask before getting insured. Consulting with a qualified advisor will help you not only find the answers to your other insurance-related questions, but help you choose the right insurance policy for you. The advisors at Rate Detective are ready to talk to you and to help you compare quotes from the top 9 insurance companies in Australia. Contact us right away for more details.

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Published on October 10-th, 2012 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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