To help you avoid some of the common mistakes people make when buying insurance, we’re explaining some of these errors and why they may be more harmful than helpful.
1. Not having enough cover
If you’ve had insurance for a while now but haven’t updated it, you might be underinsured. This means that any new assets you have, or any life changes you’ve experienced, might not be covered should the worst happen. You need to review your cover regularly to account for these changes, but also to account for any market valuation changes.
For example, the value you set when you first took out your home insurance might be lower than it needs to be in the current market, potentially leaving you out of pocket should you need to rebuild.
2. Ignoring disclosure requirements
It’s important that you disclose all of the relevant information when taking out cover, particularly when it comes to medical insurance. A common mistake people make when buying insurance is that they don’t disclose their previous medical history, believing that it will make them ineligible for insurance, or that it will mean they have to pay higher premiums.
Unfortunately if you don’t disclose this kind of information, when you need to make a claim it may be denied. If you’re not sure whether something should be disclosed, include it anyway, or get advice from the professionals.
3. Putting it off
One of the most common mistakes people make when it comes to insurance is not getting any in the first place. The insurance-buying process can be complex and confusing, but with the right help, it can be a lot less stressful and will keep you protected when you need it.
This mistake is often made by those who are a bit younger, as they think they don’t need insurance just yet. The problem is that age often comes with an increase in health problems, and the longer you wait, the more you’ll end up paying. Getting insurance sorted as early as possible is key.
4. Taking out the cheapest cover
When it comes to insurance, you often get just what you pay for. That means that if you’re buying the cheapest cover option available, it’s likely not going to do what you need it to, when you need it. That’s not to say you need the most expensive and comprehensive insurance on the market, but it’s important to ensure that your cover is tailored to your specific needs and financial situation.
For the best cover options that work for your needs and your budget, it’s best to speak to an adviser. They know the available products and providers inside and out and can recommend types of cover that will keep you protected without blowing your budget.
5. Going it alone
As we mentioned, getting help from the professionals is absolutely key when it comes to avoiding insurance mistakes. A financial adviser can help you weigh up your options, and can explain your policy in a way that you can understand. They translate the jargon so you know exactly what you’re covered for, and where you might need more protection.
If you’d like to have a chat with one of our advisers at Haven, simply get in touch with us below – we’re here to help!
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