Life is unpredictable and it always contains risk.
Have you ever considered what happens to people related closely to you if something unfortunate happened? Your kids, your husband/wife, your parents, your friends, they are all people that matter in your life. Think closely, my friend, you can actually prepare and do something for them, and take care of them whether you have the ability or not. With the help of insurance, in case things do not go as well as your expectation does, all the risks are eliminated and removed. Insurance companies charge you a small portion of your total income in a regular basis, and in return offers you a security service, compensating you from unexpected loss, from cars, properties, health and even lives.
It is therefore an essential service and investment indeed. Acting like a hedging agent, it hedges off the risk of your daily life. You should treat it as a way of investment and handle it wisely.
Here are the major factors that you should consider when you are purchasing an insurance service.
1. Price-income-ratio
How much is it causing in total? Is it a huge amount like millions of dollars or is it a small sum not exceeding 1000? When considering this factor, take special note to the fact that insurance companies usually charge you in a regular monthly basis rather than a one-time basis. So via utilizing this price-income-ratio, you can get a good picture that how much the service is costing you.
Monthly charge/Monthly income * 100% = % of income insurance is taking off you monthly
2. Coverage
Consider the area you want special care over. Are you concerned about your cars? Properties perhaps? Your precious kids? Or even the health of your own self? When investing in insurance, it is annoying YET essential to look carefully of the insurance coverage of the service. You have to choose the service wisely and come up with one that is the most suitable to you.
3. Money-back
In case you haven't heard of this yet, some insurance services actually offer to return a partial sum of the total invested amount if the nothing happens at the very end of the services. It is always a good idea to get some part of your money back provided the fact that you should still choose the most suitable plan, making the money-back a less prioritized factor.
4. Interest
Besides money-back, some insurance companies actually stepped up the game by adding interest paid to you for your huge sum of money deposited. The insurance and savings services act as a wealth management plan. These sound nice but make sure to pay good attention to all the terms and agreements to avoid unwanted terms and losses.
In short conclusion, treat insurance as a kind of investment and do it wisely and suitably.
