All insurance works pretty much the same way: You pay a premium (a set amount of money) to the insurance company, usually on some sort of schedule (monthly or yearly, for instance). In return, the company issues an insurance policy to you, which is a contract that gives you certain coverage, or financial protection. When you suffer an insured loss, you file a claim and the company pays you a benefit.
Consider the purpose and define your goal
Insurance is meant to protect you against catastrophes, not day-to-day annoyances. You use insurance to guard against things that aren’t likely to happen, but which would cause financial hardship if they did occur
1) Travel Insurance
Travel insurance is one of those things; you usually tend to decline, until you have that one bad experience. Once you have that bad travel experience (and we all will at some point), you’ll never skip getting travel insurance. Many credit cards that you book your experience with will offer some sort of travel insurance too. To be safe, go with the one that the booking company offers. It usually covers the most.
2) Renters & Homeowners Insurance
A lot of new apartment complexes require you to get this type of insurance. It is important to protect your belongings in case of any issues that may occur when renting a place. It’s even more important to insure your home if you are buying a new place as well. You want to protect your investment with a policy that will help you sleep at night!
3) Disability Insurance
When you first start working, you instantly become an asset and a value to yourself as well as the people you support. Even if you’re currently not supporting anyone, getting disability insurance when you start working is a policy that protects the salary you are making. If in any case you get injured or cannot perform your job your disability insurance can pay up to 80% of your salary for life. It’s worth the extra dollars to protect yourself, this is wisdom word.
4) Life Insurance
In Nigeria where over 90percent are religious to the core always said we’re all not afraid of that day when we’ll pass to the next world the game is over, that is the end. But we forgot, what happens to our loved ones we left behind, the ones we are taking care of? We need to make sure they are taken care of. Life insurance does just that. It makes sure your loved ones have enough money to survive after your death. It’s hard to think about, but it’s a little comforting knowing than your loved ones will be ok after you are gone. The policies have different terms and prices depending on how much you’d like to get paid out.
5) Supplemental Insurance
Sometimes Nigeria stakeholders do says that there is no an insurance policy that can cover it all. Supplemental insurance does just what its name suggests, every things. It covers you in cases where your other insurance policies don’t cover you enough. It’s really a good consideration if you’re other policies have loopholes in them, or you feel the need to be protected with an extra layer just in case.
6) Long Term Care Insurance For Elderly
In this part of the world where elders are always forgotten though served the country with full energy yet he/she always abounded at old age. As you are, once you turn a ripe old age, things start to break down. Long term care insurance if introduced by insurance operators will help with the costs associated with old age and taking care of the elderly. Get it for yourself or a loved one to ensure you don’t run into a situation where you can’t take care of yourself or the one you love after their body stops working.
7) Car / Automobile Insurance
This one is self explanatory. If you’re buying or leasing a car this is a must! Protect yourself, protect your car, your investment everything! Get collision insurance for an extra layer on top of regular liability. Make sure to check with your country or state to make sure you get the insurance that meets the requirements. This is one of the most important types of insurance anyone will buy.
8) Health Insurance
If it’s affordable get it! Healthcare is expensive. One MRI can cost thousands if not tens of thousands of dollars! Don’t ever be cheap with your health. Health insurance is one of those things, even if you don’t use it. To know that you have it will help you live a better life. That doesn’t mean you should stop taking care of yourself, you should just feel that you have a guardian angel protecting you in case of any catastrophic events
Consider the purpose and define your goal before taken any insurance policy
Insurance is meant to protect you against catastrophes, not day-to-day annoyances. You use insurance to guard against things that aren’t likely to happen, but which would cause financial hardship if they did occur.
To be candidate, your goal should be to have just the right amount of insurance. If you have too much, you’re wasting money.
According to the researched carried out by BA Ameh Company on insurance policy sometimes ago revealed that, for instance, if you have a N2000 deductible on your car insurance, you will probably end up paying the insurance company far more in premiums than they’ll ever pay you in benefits! Or, if you’re young, unmarried, and have tons of credit-card debt, life insurance usually isn’t a good place to put your cash.
On the other hand, if you’re a 40-year-old small-business owner and father of five, term life insurance could be an excellent way to hedge against the risk that you’ll die tomorrow. Or, if you’re a millionaire who likes to drive fast, increasing the limits on your automobile liability coverage could save your fortune if you get sued for the damage you cause when you plow into the back of a school bus.
How to save on insurance
The number one thing you can do to save money on insurance is to self-insure as much as possible. That is, set aside your own money to cover minor and moderate catastrophes, if possible.
To do this, try raising the deductibles on your auto and home insurance policies. Then take the difference between your old premiums and your new premiums every month and put it into an online savings account that you designate as “self-insurance.” It won’t take long for you to have more than enough to cover the deductible.
You can also save money on insurance by reviewing your coverage from time to time.
Read your policy. As with all legal contracts, it’s important that you read your policy so you know what’s covered and what isn’t. Pay attention to policy changes that come in the mail. If you have questions, ask. And make it a habit to review your policies every so often to be sure you understand them (and check whether anything has changed).
- Don’t duplicate coverage.Know which policies provide which benefits. for example, you don’t need towing coverage on your car insurance. And if your credit card doubles the warranties on the things you buy, don’t pay for extended warranties. I try to go over my policies once a year to remind myself of my coverage. (I’m a forgetful guy!) I recommend you do the same.
- Get all of your insurance from one provider. Insurance companies often give a discount if you have multiple policies with them. Plus, this saves you the hassle of having to pay more than one company.
- File fewer claims.Don’t nickel-and-dime your insurance company. If you file claims for every little thing, they’ll raise your rates. Insurance is meant to cover unexpected large losses, not every ding your car gets from shopping carts.
Tip: To increase the odds of a satisfactory settlement when you do file a claim, be sure to document your losses well. And it is perfectly acceptable — good even! — to negotiate if you think the insurance company’s settlement offer isn’t fair (and their first offer almost never is fair). Be persistent.
- Shop around.To find better rates, harness the power of the web. Visit the Nigeria Association of Insurance and click the “states and jurisdictions” link to find your state’s insurance department. From there, you can find info about your state’s insurance laws and, in some cases, get quotes.
- Buy only what you need.Insurance agents are happy to sell you more coverage than your situation calls for. Does some research before you buy? Figure out how much and what kind of insurance you need, and don’t let the agent talk you into more.
- Raise your deductible.The deductible is the amount you pay on a loss before the insurance company kicks in money. For example, if your car takes N400 in damage because you drive over a curb and you have a N250 deductible, you pay the first N250 and your insurance company pays the rest. It’s up to you where to set the deductible, but the lower your insurance deductible, the higher your premiums. Ask yourself how much you can afford to pay if something goes wrong; more specifically, how much is toomuch? Set your deductible just below “too much”.
- Take care of the things you insure.One of the best forms of insurance is routine maintenance. A well-maintained car is less likely to have an accident due to mechanical failure. If you take care of your house, it’ll weather the ravages of time. And if you exercise and eat right, you’ll get cheaper life and health insurance.
These tips help you save on most types of insurance. Still, not all insurance advice can be generalized; each type of insurance has its quirks.