Get in Touch

Things to consider in buying insurance

by on May 12, 2019 in Business, Latest News, Lead Article, News you can use, Nuggets

Things to consider in buying insurance

To be sincere, most people think of insurance after they have experienced a devastating loss or when calamity has occurred.

This is when you need a company to intervene by compensating you for the losses suffered.

It’s advisable to get better coverage to protect your assets, financial well being as well as family health. Without a better policy plan, you may find yourself exposed to these dangers. The most appropriate time to look for the best company to cover your needs is before a loss has occurred.

Below are the things to consider in buying insurance:


Before you embark on buying a policy it’s good to first identify the purpose. Many individuals buy policies for protection needs as life insurance is seen as a way of providing financial security to the dependants as well as a cover for your liabilities.

Getting life cover comes with an added advantage that is taxes are not imposed to the amount to be paid after the expiry of the contract. There are other individuals who opt for limited pay life insurance. These are individuals who possess a whole life plan, but opts to pay the premium costs for a specific number of years.

Premium term

It is a legal binding contract between the company and the insured. So before getting into a contract with any company, it’s good to first read and understand the terms and conditions fully.

The premium term is an important part of any policy and the amount set has to be paid at regular intervals by the policyholder.

Before buying a policy it is advisable to first check the amount to be paid as premiums as well as the set intervals. It enables you to evaluate whether the premiums are affordable to you and also to estimate the returns upon maturity of the policy.


When buying an insurance plan its necessary to ensure the company you are getting into a contract with has a good reputation. You cannot just trust any company to protect you and your family needs as well as financial assets without first evaluating it.

You may try to find out how the company is rated by the insurance rating organizations and through this you will find detailed information relating to the company.

Insurance rating organizations rate these companies based on their previous financial performance as well as return on investment.

Ask the agent for a best offer

When buying a plan you may either use an agent or buy directly from the company. When using an agent, he or she may try to elaborate the available policies so as to help you pick the one which suits your needs.

If the outlined policies are not providing coverage for all your needs you may request your agent to find a more comprehensive coverage package plan.

The independent insurance agents are not restricted to one company instead they represent many companies. Do not opt for a captive agent because he/she represents only one company, so he can only provide you with policies offered by the company he represents.

The above are some of the things you need to consider when buying coverage. They are very essential because they help one to avoid making mistakes when choosing the policy and the company to enter an agreement with.


Print article