Before deciding what insurance you would like to buy, there are a few factors that you will need to take into consideration. Everyone has circumstances so understanding and identifying your needs is an important first step when deciding what type of insurance to buy. These individual circumstances means that every individual poses a different level of risk to an insurer but everyone will choose to manage the risks they face differently. 

When to buy insurance?

When to buy insurance will depend on what you want to protect and where you are in life. Insurance is often purchased at the time of or before buying a new asset, such as a car, home, gadget or before travelling abroad. However, when to buy insurance and the type of policy needed may also depend on what stage you are at in life or personal circumstances. 

Your priorities when choosing insurance for the first time as an independent adult could be very different from those you have later in life when you might have a partner, children and a mortgage to consider. These priorities are likely to change again as you move through stages of life or your personal circumstances change and it is therefore important to understand the various policies and types of insurance available to you at any stage. Fortunately there are plenty of options available to help you protect your lifestyle from the risks that concern you most. 

Most people buy insurance for the following reasons:

• High value
  A high value product which would be expensive to replace would often be something a consumer would like to protect (such as a house, a car, gadgets or jewellery). In some cases a loan may have been taken out to purchase these products initially or they are a family heirloom or considered priceless to them.

• Catastrophe
  To protect their property and possessions against a disaster, such as a fire, flood, cyclone or other calamity.

• Travel
  To protect themselves and their belongings and take vacations without worrying about flight cancellations or emergency medical expenses abroad.

• Health
  Cover health care costs such as private consultants, surgeries, hospital stays and scans.

• Liability
  To provide financial protection if sued – for example, if a visitor should sue you for negligence after injuring themselves on your property.

There are a number of ways of buying insurance, however it is important to do some research to help you understand your own level of risk and identify the best insurance product for you. You also have the option to speak to a adviser or broker if you are unsure the kind of cover you will need or to understand the various conditions and requirements for some companies and policies. 

Where to buy insurance 

You can buy insurance from any of the following: 

• Directly from an insurance company, either online or by phone. 

• Through an insurance broker 

• Compare the cost via a price comparison website for the same insurance product from various companies. 

• Through a financial advisor 

• As part of another package i.e bank or building society account or work package.

What to consider when choosing a policy

What you need your policy to cover:

• What you do not need cover for. Don’t pay for unnecessary extras. 

• The exclusions, terms and conditions and excess on the policy

• Who the policy covers 

• Don’t choose insurance based on price alone. It is important to look at the bigger picture to understand what exactly is included in your cover before making your decision. 

• Answer all of the insurer questions honestly, i.e when buying health insurance ensure you provide a full detailed medical history.