Part of growing up is recognizing and fulfilling personal goals and securing a stable lifestyle that meets your needs and the needs of your potential or growing family. Buying a car and purchasing a home are often milestones you’ll attain.
Insurance will provide you with the protection you need, but many people aren’t sure where to start and how to choose the right type of insurance for their needs. Rest assured, feeling overwhelmed is entirely normal.
If you need help navigating the insurance world, start with the basics. Here are five tips you should consider.
1. Understand why insurance is essential. Think of insurance as a way to manage risk. For a monthly fee or premium, you enlist the expertise of an insurance agent to help you identify your potential risk and provide you with the right insurance coverage for certain expenses you could incur if you suffer a loss. Here are a few examples of insurance you should consider at various milestones in your life.
Car insurance covers repairs, medical, and legal expenses if you’re involved in an accident.
Mortgage lenders require home insurance to verify that your home is protected from perils such as fire, wind, or hail.
Business insurance protects the valuable assets of your business.
Identity theft protection helps cover out-of-pocket expenses associated with restoring your identity.
Umbrella insurance provides coverage where your primary insurance policy ends by giving you a sizeable additional layer of liability insurance.
2. Do your research and brush up on your insurance vocabulary. It's essential to familiarize yourself with industry terminology and have some knowledge of insurance before engaging in a discussion. Do some research on insurance agents in your area, as well as insurance companies.
3. Determine what kind of coverage you need. While it’s your agent’s job to recommend the best insurance for your expressed needs, it’s a good idea to bring a general outline of what you think you’ll need to your initial meeting. For example, if you’re a homeowner, you might look into homeowners insurance, flood insurance, and insurance for your personal possessions.
If you own a business, you might consider business insurance, identity theft coverage, and workers’ compensation insurance, to name a few.
Think about your insurance needs in advance so you can accurately express what types of protection you may need.
4. Find an insurance provider to meet your needs. One of the critical considerations in selecting appropriate insurance coverage is choosing a company and agent to help you. It’s essential, however, to first understand the difference between an independent agent and a captive agent.
Captive agents represent one insurance company and offer only that company’s policies. On the other hand, independent agents have no exclusive relationship with any insurance company. Independent agents offer a wide range of products from multiple insurance companies and can provide guidance on various products, coverage options, and prices. Independent agents don’t work for one insurance company; they work for you.
You should meet with your agent each year to review changes in your protection needs and to alter your policy to reflect changes in your home, auto, or family life.
Do you have any suggestions or tips you’d like to share? I’d love to hear from you. Please share them in the box below.
This article is intended for general educational and illustrative purposes only and should not be construed to communicate legal or professional advice. Further, this article is not an offer to sell insurance. Please consult with your licensed insurance agent for specific coverage details and your insurance eligibility. All policies are subject to the terms, conditions, limitations, definitions, and exclusions contained therein.
