Only
buy the cover you need
The
first rule with any insurance of any type is only buy what you really need.
Don't get too much.
For
example a single person with no dependents does not need life insurance
but should perhaps consider Long
Term Income Protection
However
definitely don't get too little insurance cover. The whole point
is to give you peace of mind that in the event of something unforseen happening
everything nearest and dearest to you will be taken care of.
Don't
leave it to chance.
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Always
Shop around
The
cost savings and quality of insurance policies vary greatly.
You'll
find differences of £150 a year on mortgage protection insurance.
(That's
£3,750 over a 25 year mortgage).
You'll
find differences of £66 a year on Buildings and Contents
Insurance.
(That's
£1,650 over a 25 year mortgage).
You'll
find differences of £400 a year on Life insurance policies
(That's
£12,000 over a 25 year mortgage).
If
these sums were put into your a pension fund instead, they could be doubled.
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Make
sure your insurance policy actually covers you
Bear
in mind that just because an insurance company has sold you a policy it doesn't
mean you're eligible to claim on it.
Read
the small print on the documents you're sent.
Take
advice from another broker or IFA.
As
a slightly extreme though perhaps appropriate measure you could ask your insurer
to get them to confirm in writing that your particular circumstances are
covered.
(You
need it in writing because, when push comes to shove, you'll have a hard time
proving they ever said anything).
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