Structuring your insurance
Now that you’ve decided you need insurance, you then need to determine which type of insurance cover you require. Generally, you need a little of everything, but each individual is different. If you’re limited by budget, try prioritise what is more important to you.
Life insurance is often opted for as it’s generally the cheapest cover and the cover that people are most familiar with. If you are seriously ill, then not only has your family unit lost your income but you still have to feed, clothe and perhaps find a carer to look after you. For most, due to the relative cheapness of life insurance, not insuring yourself for your outstanding mortgage and personal debts is just plain stupidity. Having said that if you’re single and have no dependents there is very little reason for you insure yourself in the event of death. After all, you can’t take it with you.
Income protection plans are ideal in terms of providing a long term income, but don’t provide the lump sum that you may need in times of very serious illness where you may want to spend time away with your family.
Trauma and TPD policies provide a lump sum, but can seem costly, this is because men have a 2 in 5 and women a 1 in 4 chance of suffering a critical illness between the ages of 30 and 64 (General Cologne Re, 2001).
As a result, structuring your insurance is very personal. My suggestion is to use the quick calcs that Zurich have built for Ezicover and get a feel for the cost. Zurich Ezicover even allows you to put multiple covers within one policy with an added benefit of a multi-policy discount. |
Top 3 insurance tips
Tell the truth
Failing to disclose all relevant information to your insurer about your current health, personal habits (such as smoking and drinking) and medical history may cause complications at claim time.
Shop around
Many insurance products are sold direct through a high street bank or alongside a mortgage product. Unless you’ve shopped around or dealt through a broker how do you know you’re not overpaying?
Get insured
Obviously we’re going to say this, after all, we want
your business, but, as simple as it sounds, it’s the one
thing most of us are guilty; ‘just not getting round to
do it’. Even small premiums can make a significant
difference in the event of a claim, so make sure you
have some in place.
Our online application with Zurich means you can now
apply in just 5 minutes, so there are no excuses.
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