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Top Insurance Tips: When and When Not to Buy

By: Anna Martin - Updated: 9 Sep 2012 | comments*Discuss
Life Insurance Disability Home Insurance

The most obvious time to buy insurance is when you are about to embark on a controlled, planned life change. This could be marriage, the purchase of your first home, the birth of a child or any other life altering event you are able to maintain considerable influence over.

Considering purchasing life, disability, home insurance etc is a smart choice at this stage in your life because the insurance will enhance your ability to maintain your lifestyle, and provides protective cover should the unpredictable ever occur.

There will obviously be time when you will have to ponder carefully over the option of whether or not to fork out for additional insurance cover. For instance, do you really need to purchase rental car insurance, when you are on holiday? This almost throw-away decision could result in you shelling out thousands of pounds to cover damages, instead of walking away free from obligation.

The Best of Times

  • The best time to buy Life Insurance is when you are in good health and don’t need it. The older we get, the less able we may be to deal with health issues, and the more health with impact on our ability to qualify for Life Insurance. Having a family history of disease may also affect your decisions about future insurance coverage, as you may start anticipating your future obligations sooner than you imagined.

And The Worst

  • Do not buy Life Insurance just because you start worrying about death and leaving a legacy. Buying Life Insurance is something that should be considered at the right time for you. For instance, you may not have any dependents, or may be fortunate enough to have assets that can easily cover the cost of dying.

  • Do not buy insurance because you feel under pressure to do so. Contrary to popular belief, Life Insurance coverage is not harder to get the older you are. Insurance premiums may be lower when you are young, but if you are willing to pay the higher premiums, in later life, you will be able to find an insurer willing to offer you the coverage you require.

Cats and Dogs

Insuring the family pet can seem a huge waste of money, when you stop to think of the likelihood of your dog or cat spending all the money you have invested in their well being. The chances of having to spend that amount in vet’s bills is most probably very low, but if you love your pet and are willing to do whatever it takes to ensure they stay fit and healthy then deciding to buy pet insurance is unavoidable. Unless of course you are willing to take out a loan, should you find yourself suddenly having to pay for an expensive emergency procedure.

Having your pet insured, whilst the animal is still young, means there is less chance of a pre-existing condition preventing your pet from receiving full insurance coverage.

Beware: Restrictive Insurance Policies

When considering purchasing Dental Insurance it is worth checking whether the yearly maximum, that is automatically renewed every year, is carried over to subsequent years. Most dental insurance policies will not do this. Dental insurance companies will also work on a fixed fee guideline, which states the cost of individual procedures. This is not necessarily what your dentist will charge, and you may discover that the insurance company underestimates the amount, which can result in you being out of pocket.

Once you have insurance it cannot be taken away from you. So it is worth making this investment in yourself.

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