Why Cheapest Isn’t The Best (Policy)

Constantly on the hunt for the best bargains as we hope to stretch our dollar for the best value. But what if the cheapest isn’t always the best?

Fundsupermart Sep 19, 2017 4238

Who doesn't want the best deals at the cheapest price? Always wanting the best, we inevitably get drawn to deals that promise the 'most value'. However, while it may be reasonable to go for the cheapest option for items such as jewellery or cars, insurance is not something that should be scrimped on.

While we do not advocate blind purchases or over-insuring, insurance is ultimately purchased for the purpose of providing protection. This ensures that our immediate expenses and those of our loved ones can be covered when faced with unexpected situations. Therefore, when choosing your insurance, it is essential that you do not neglect your protection needs and the suitability of the policy.

#1 Future Needs

As you grow older, your health may deteriorate and you become more prone to contracting illnesses and other medical problems.1 This would affect your insurance premiums as your age and medical history could cause the premiums to become more expensive. In some instances, your pre-existing health conditions may even prevent you from obtaining any additional insurance coverage. This could leave you without insurance, lacking the protection and coverage that you desire.

Therefore, while opting for the cheaper policy may be a tempting option, it is imperative that you assess your financial needs before making any purchases. With the objective of an insurance being the ability to provide for protection in unforeseen circumstances, your policy should be purchased after careful consideration, taking into account both your current and future needs. This is to ensure that your planned insurance portfolio is a deliberate decision and does not neglect nor compromise any potential future concerns.

#2 Understanding the full picture

Merely focusing on the prices of insurance may result in an oversight of other relevant aspects. This is because prices alone are unable to show the full picture. As different policies offer different coverages, this inevitably influences the prices of insurance policies.

Therefore, it is important that you understand the various options and benefits that are attached to policies. This is because insurance is not a one size fit all and there may be additional advantages embedded within that could provide policy owners with greater assurance. For example, term plans across different insurers have factors that differentiate them. Ranging from an embedded critical illness accelerator to flexible policy conversion options, these policies cater to different needs and thus should not be compared based on its price. Instead, understand the full picture and what the various policies have to offer before choosing the policy that would best suit your requirements.

#3 Budget Planning

An important point that should not be overlooked is budget planning. This means organising your finances to draw up a budget that you are comfortable with spending on protection. As opposed to just comparing the prices and opting for the cheapest policy available, a budget could allow you to get the policy with the most value.

With differing liabilities, specified timeframe and financial abilities, a budget would be a more effective and efficient way to select insurance. Hence, instead of looking for the lowest priced policy, ensure that your coverage is personalised according to your protection needs. Obtaining comprehensive coverage could give you a peace of mind knowing that you will be covered in the face of unfortunate events. Setting aside a budget could also enable you to get your extensive coverage at the best value. To begin, use our insurance selector to help you discover products that may be suitable for you. This could give you a better idea of the policies available and annual premiums required.

How FSM INSURANCE can help you get on track

Our team of friendly advisers are able to help you review your financial objectives, long term commitments, and offer you investment and insurance advice specific to your needs. If you would like assistance in reviewing your financial and protection portfolio, feel free to contact us or get a quote for any insurance plan.

 

You may be interested:

Are Financial Disasters Your Thing? Here's 4 Mistakes You Must Avoid

3 Dangerous Mistakes You Don't Want to Make with Your Insurance

Should You Buy Insurance for Your Child? Here's 3 Quick Tips!

Common Insurance Myths Busted

 

Protect yourself and your loved ones now and enjoy savings at FSM INSURANCE!

1Source:http://www.dailymail.co.uk/health/article-1035037/Old-time-When-body-really-starts-going-downhill.html

All materials and contents found in this Site are strictly for information purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found in this Site. While iFAST Capital Sdn. Bhd. (“IFCSB”) has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this Site is made on a general basis and does not take into account the specific objective, financial situation or particular need of any specific person or group of persons. You should consider carefully if the products you are going to purchase into are suitable for your financial goals and objectives, risk tolerance and other personal circumstances. You should also consider the fees and charges involved. If you are uncertain about the suitability of the insurance product, please seek advice from a financial adviser representative, before making a decision to purchase the insurance product. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.



Font Size: A- A A+ A++

Related Articles

More