Whether you already have insurance in place or you’ve just been thinking about it, it’s a good idea to know some of the more common mistakes people make with insurance. From not reviewing your policy often enough to not disclosing relevant information, we’ve put this list together to help you avoid any costly mistakes!
1. Buying the cheapest insurance
We’re not saying that shelling out for the most expensive insurance is better, but buying insurance based solely on price and not on its actual suitability isn’t the best idea. The whole purpose of insurance is to give you peace of mind and protect you should the worst happen, and if you’ve got a policy in place that won’t cover what you need it to, no matter how cheap it is, you’ll end up paying more in the long run.
2. Not reviewing your policy regularly
Because your life changes fairly often, from new homes to new additions to the garage or family, your insurance needs to keep up to make sure your cover is still what you need. Every time you do have something change in your life, you should take a look at your current policy and sit down with an adviser to talk about whether it’s still suitable for your circumstances.
3. Failing to disclose important information
This has been a controversial topic of late, but it serves as a great reminder to always disclose everything relevant you can think of when you’re setting up your policy. If you’re not sure, it’s a good idea to disclose anyway, or talk to an adviser to discuss. If a health or life insurance claim needs to take place, insurers will usually obtain your medical records so make sure you’ve mentioned anything important on there too.
4. Not reading the fine print
You might think your insurance policy covers you for everything, but it pays to take a fine-toothed comb to everything to be sure. Policy wordings can often be a bit confusing and full of jargon, but here’s where an adviser can help. They can take you through it all to make sure that you understand exactly what you’re covered for and how it all works should you need to make a claim.
5. Not taking out insurance
Many people don’t think twice about taking out travel, car or contents insurance, but hesitate to take out insurance on the most important things – themselves and their families. Getting your own health or life insurance sooner rather than later is the best idea, mostly because when you finally do end up wanting this kind of insurance, it may be trickier to get down the track because of age and developing medical conditions. As the saying goes, ‘It’s better to have insurance and not need it, than to need it and not have it.’
Not sure where to start with your insurance? Want to review your current policies? Get in touch with us today for a free, no-obligation chat about how we can help you get things sorted to protect you and your family.