Know what you want when it comes to insurance

LOOKING for the correct kind of insurance cover is a multi-layered process with realms of stipulations and specifications in need of examining prior to settling on a policy that suits. It’s probably accurate to say that the majority of people are not up to speed with complex insurance terms which is why the first step is to pare down your options to exactly what it is you’re looking for, be that home and content insurance, illness cover, life insurance, savings and investment plans, or, perhaps the most topical debate of late, pension cover.

Undoubtedly one of the most stressful and anxious feelings to occupy our minds is providing financial cover for families and loved ones after we die. The impact of loss of income to a family can be minimised by sourcing what’s known as a ‘Term’ or ‘Whole Life’ insurance policy. This basically enables you to rely on a specified sum of money payable after death that is invested in over an agreed timeframe.

Specified illness cover and Income Protection also give peace of mind in cases where the onset of sickness alters a home or individual’s income stream. Home insurance is another necessary requirement. Your home is your world and by no means should you take for granted what is an emotional as well as financial asset. Home Insurance is usually broken into two parts: the building and its contents. The former is usually a prerequisite when obtaining a mortgage and it specifically covers a home’s structural features. The latter covers personal possessions and treasured items that makeup a home’s interior. Very often a ‘ceiling’ or ‘maximum limit’ in cover applies in such cases so this needs to be ironed out during the contract stage.

As aforementioned, insurance is an all-encompassing term covering a multitude of different situations. Depending on the policy, its terms and conditions will invariably differ yet some important caveats apply across the board when choosing a policy (too many to outline in sufficient detail here). But, for example, one should always examine the cancellation clause of any policy you’re considering with the insurer as this may result in a percentage of the premium, in respect to unused portions of the policy, being refundable in cases where cancellation occurs prior to expiry.