TIPS ON HOW TO CHOOSE THE RIGHT INSURANCE POLICY

TIPS ON HOW TO CHOOSE THE RIGHT INSURANCE POLICY

Need some guide to get insured? Preparing for the future is extremely important. Putting your money in an insurance policy is a sound investment move. This article will help you make that decision on how to choose the perfect insurance policy for you and your loved ones. It includes a basic introduction of each kind of insurance policy and guides on what to consider when choosing one.

Home insurance:

Home insurance protects homeowners against losses caused by man-made or natural disasters.

How do you assess your needs?

• Could you replace your house if destroyed?
• What happens if a fire eats up all your home furnishings?

Questions your insurance agent asks:

1. About the house
• What type of materials were used to construct the house?
• What type of house is it?
• What are the divisions of the house?
• How many square meters does the house occupy?

2. About the contents

· What are the items located in the rooms or divisions of the house

3. About the people

How many people occupy the house and who are they?

Private Car Insurance

Car insurance protects you against the risks associated with owning and driving a car. Private car insurance entails motor vehicle protection if your car is stolen or under repair due to an accident. The two basic categories of auto insurance coverage are liability and physical damage.

How do you assess your needs?

The following factors are considered to assess the how much liability coverage is needed:

· Driving record of covered drivers

· Anticipated use of cars

· Distance travelled each day

· Current market value of the car (year, make and model)

Questions your insurance agent asks

1. About the car
• When was the vehicle manufactured?
• What is the model type, color and seating capacity of the vehicle?
• What is the engine type, engine number and chassis number of the vehicle?
• What mileage has the vehicle completed?
• Any accessories?
• Was the vehicle imported?
• Is the car used for domestic, social or business arrangements?

2. About the driver

· Who drives the car?

· Does the driver have any medical disability?

· Have you been in any accident or have you been in connection to one?

· Have you been convicted of any offense or incurred a penalty in connection with a motor vehicle?

· Have your driving licensed been suspended any time?

Personal Medical and Accident Insurance

Life insurance covers anything from hospitalization due to illness, disability or sever injury as funeral arrangements due to accidental or anticipated death.

How do you assess your needs?

An effective life insurance plan identifies the existence of risks. Once this is done, the financial impact of disability or premature death is defined according specific peso cost. The methods of computing this varies from one insurance company to another.

Questions your insurance agent asks:

1. How fit are you?
• Do you have any history of illness or disease in the family?
• Have you been confined in a hospital for an ailment or an operation?
• Do you have any deformity or impairment?
• Do you engage in hazardouse sports?

2. How well do you take care of yourself

3. What’s your lifestyle?

· How is your worklife?

· How is your homelife?

· How do you use your leisure time?

4. How is your emotional health?

· How strong is your self-esteem?

· Are you in a loving relationship?

· What is your attitude towards work?

· How are you coping with the world?

_Reference:

_{Good housekeeping, June 1999, p 78}