Let’s Talk About Insurance…

Insurance companies will need to gather information from you when you apply for one of their insurance policies. They will ask you a number of questions, which are designed to devise the right insurance plan and to determine how much premiums you should be paying. For more on this process of information sharing, read on.

When you are interested in an insurance policy, you will need to fill out an insurance application. In most cases, simply filling out this form will be enough for the insurance firm to decide whether to accept your application. However, there are cases when insurance companies need to ring potential clients to ask more questions before they make the decision. This may occur if one of your answers is vague, or if something has given them cause for concern. For example, if you are looking for the right insurance cover for Australian businesses, something regarding your tax status may need to be explored further. The good news is that you do not need to think about what details you must volunteer to insurance companies. So, don’t worry about this, as it is up to the insurance firm to ask all of the relevant questions. However, what you do need to do is be honest whenever answering the questions. You need to take reasonable care to ensure that all of your answers are accurate, and you should not purposely avoid giving out certain information.

What about credit insurance?

General insurance companies offer a wide range of insurance policies for their customers to take advantage of, and one of these options is credit insurance. Credit insurance is a form of coverage that does not get spoken about as much as life insurance and auto cover and, therefore, a lot of people do not know much about it.

For those who are unaware, credit insurance is a cover that you can buy whenever you take out a loan. It offers protection for both you and the lender and the circumstance that you cannot pay the loan back due to unemployment, disability or death. Whenever you take out a loan, credit insurance will be sold with it. Sometimes it is built into the loan payment, and so you don’t hear anything about it. In other cases, you will have an element control over the credit insurance companies you work with. However, before purchasing credit insurance, there are a few things you should consider.

Firstly, if you have savings or any other assets that would cover your debts in the event of unemployment, death, or disability, then you may not need this type of insurance. You also need to weight up whether it is more cost effective to choose a credit insurance policy, or whether you would be better off going for a disability insurance plan or life insurance. Finally, make sure you read the terms of the policy, you now what is not covered by the policy, and, if you lose your job or become disabled, you must be aware of how long you need to wait before the monthly benefit is paid.


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