All of us have been there. We’ve all thought about buying something, but haven’t had the time or resources to properly research it. We decide to buy it because it looks good and since I don’t have the time right away, it’s worth it. I assume they’re all the same. The skim researcher will do more. They will likely choose a well-known brand, search for the best buy recommendation, and then go for something mainstream. For added comfort, you can say “If many people have purchased this product it must be okay.”
This will likely work well enough for buying a TV or washing machine. It is easy to evaluate the price and appearance of physical objects. It is quite different when it comes time to buy a service or insurance product. The reputation of a company’s ability to deliver the service is everything. Airport parking is one example. Every day hundreds of people use the same process and there is a lot of customer feedback. This will allow you to know exactly what you’re buying and what to expect.
Insurance is a promise. It is rare that you will get more than a few sheets of paper and a leaflet for the money. Each month, a substantial amount of money disappears from your bank account. It is even more difficult for customers to give feedback. The majority of insurance policyholders don’t want to receive the services offered by insurance companies. This is because they fear that this could lead to financial disaster. The most happy customers are those who have paid the product but received nothing in return. They have the assurance that if something goes wrong, they won’t be confronted with any financial ruin or a large bill.
Most of us have to work in order to provide for our families and pay the bills. People tend to live in a way that is dependent on their income. If their monthly wages stop coming in, they will soon be in serious financial trouble. It is because there is little chance to save, especially for those just starting out, first-time buyers, and young families. It is impossible to save thousands of pounds if you have regular outgoings.
Unemployment Insurance is an option for those who have little to no savings or are worried about their financial future. It’s much easier to pay PS30-40 a month to an insurer than to save, say, PS12,000 for financial obligations for up to one year. It was sensible for me to insure myself against unemployment. I needed enough coverage to pay my bills and avoid being blacklisted while I looked for a job. It became even more important to have coverage as my friends who were laid off remained unemployed for over six months. I made the classic error of buying a product I didn’t need and at the wrong cost.
Learn from my experiences. These are my top ten tips for choosing the right insurance policy at the lowest price.
1. Be familiar with the product’s name. Although this may seem simple, most providers don’t call their products Unemployment Insurance. Almost none of them refer to it as Redundancy Cover, even though that is what most people want. You can also search for ‘Accidents, Sickness, and Unemployment Insurance’, “Income Protection” (short term), or “Lifestyle Protection Insurance”. To confuse things, full-term Income Protection Insurance doesn’t cover unemployment. It is only for long-term disablement until retirement. Spend your time not researching the wrong thing.
2. Mortgage Payment Protection Insurance (MPPI) is a better option if you’re looking for mortgage repayment coverage and maybe up to 25% for other household bills. This insurance is readily available and the most affordable. You may need more benefits or rent instead of a mortgage. A short-term Income Protection or Lifestyle Protection policy is almost identical.
3. You can do a lot of research online, but don’t fret about the details at first. Just get an idea of what premiums are for a certain level of coverage. Comparison web sites are especially useful because they allow you to compare apples with apples. Money Supermarket has the highest number of low-cost direct to public providers. For information on the ‘Mortgage and ‘Payment options, please visit their insurance section.
4. Keep your eyes on the major brand comparison websites. There are many other websites offering online comparisons that offer similar services. These websites are designed to steal your information and sell it to the highest bidder. Be wary of anyone who asks for your telephone number to give you a quote. Your phone could be ringing in no time. These people are persistent and I find them annoying. Personally, I don’t like hard selling so I recommend you avoid them.
5. You should look for specialists. They are known for providing great value and have a good reputation. There are many that you won’t have heard of. It is a good idea to use comparison websites to help narrow down your search. Not all suppliers are listed on these websites. Another way to find the best value providers is by consulting Money Saving Experts for Mortgage Payment Protection Insurance.
6. Providers that are more selective about the people they cover will generally offer the lowest premiums. If you meet the criteria, your premium may be half or even a third of what you would be charged elsewhere. Please remember that this policy is not like motor insurance and the cost of it will go up as you get older.
7. Most providers won’t cover you if you were made redundant within the past year, even if you get another job immediately, have been in a job less than six months, or your company has already cut back. Although the most expensive providers might offer insurance, some terms and conditions could limit their coverage. People who are not in high-risk industries will not be eligible for the lowest premiums. Builders and civil servants, for example, will not be able to get a good deal.
8. Many do not offer instant coverage, even though you can apply online and make a direct payment. Many companies will accept your application but will not confirm whether they offer coverage after conducting checks. These checks usually focus on your employer, with particular reference to any layoffs. They may request a doctor’s certificate for applicants who have medical conditions. This is where coverage includes sickness and accident.
9. This type of insurance can also be purchased through an IFA or a local mortgage broker. They cannot usually offer you a choice of providers and the premium will be significantly higher as they provide advice and handle all the paperwork. Brokers can be a helpful alternative if you have problems with applying online or if your application is denied by web providers. Be prepared to do a thorough selling job once you are in front of an intermediary. They have a lot of insurances that they would love for you to purchase. Be specific or they will keep you there for hours.
10. All insurers offer what is known as an initial exclusion period for unemployment benefits. This is typically for the first 120 days. This can vary between 90 and 180 days, so it is important to consider when comparing coverage. They will not pay for any unemployment claim that arises during this time. This sounds a bit harsh. The innocent person could be caught by their employer’s sudden fortunes. It is an anti-fraud measure that the underwriter uses to deter people from taking out cover before an announcement about redundancies is made at their company.
After doing my research on this product, I discovered that I could pay more than three times the amount for the same coverage purchased through a high-profile High Street bank as compared to an online specialist. My research paid off and I now work for a company that sells the product. These policies have seen a surge in popularity since the recession. They choose a benefit level of PS1000 per month, which covers their bills. This cover provides policyholders with free access to a specialist company for re-employment. They can help them find a job, prepare their resumes, and assist them in interview techniques.
I believe the coverage is worth purchasing and have received a lot of thank you letters from people who have claimed. This insurance is an excellent alternative to the severe financial consequences of being unemployed for any length of the time.
Dennis Haggerty FCII M IDM Marketing Manager iprotectinsurance.co.uk specialises in the supply of low cost on line Lifestyle Protection, Income Protection and Mortgage Payment Protection Insurance.
The focus on providing a product selection that is exclusively online has been key to the success and growth of i.protectinsurance. i:protect is able to offer exceptional value by eliminating all costs associated with selling insurance. This includes commissions, middlemen, and telesales.
