4 Critical Personal Risk Insurance Mistakes to Avoid

Most people are well aware of the importance of home and vehicle insurance, but there’s a certain mental blind spot when it comes to taking out personal risk insurance in Nelson. While there are a few underlying factors behind this, the key reason is that people rarely take the time to consider what would happen to them and their families if they were to fall ill or sustain an injury.

Here at Ease Insurance Brokers, we’re all too familiar with the dangers involved with neglecting personal risk insurance. During our time in the industry, we’ve noticed a few recurring issues that people tend to make when taking out these sorts of policies. Here are four mistakes to avoid when taking out personal risk insurance in Queenstown:

1. Leaving it Too Late

Whether you’re thinking about taking out income protection, mortgage protection or redundancy insurance, one of the biggest mistakes people make is simply leaving it too late. Not being covered by a good policy can leave your family in the lurch if anything were to happen to you, while waiting too long to take out insurance means there may be limitations in the cover due to your age or health complications. Don’t risk waiting until something goes wrong to take out personal risk insurance – start thinking about it today.

2. Having Insufficient Coverage

When you do take out your mortgage protection policy in New Plymouth, it’s vital that you take the time to crunch the numbers, read the fine print and ensure the coverage actually meets your needs. It’s incredibly common for Kiwis to underestimate their insurance needs, which may result in lower premiums but it also means the amount of money you or your family receive is not enough to take care of your financial obligations.

3. Not Updating the Policy

Things change as we progress through life, so it makes sense that your Queenstown redundancy insurance policy needs would evolve over time too. For example, the values set out in your insurance policy could well change when you reach certain milestones in your life such as getting married, having children or retiring, so it’s important to take a moment to review your policy from time to time as you enter a new stage of life. Leaving your sum insured at its original value could mean you are unnecessarily over- or under- insured.

4. Not Using an Insurance Broker

When it comes to taking out personal risk insurance, you might be surprised to learn that using a professional insurance broker in New Plymouth can yield far better results than going directly through insurance providers. Good insurance brokers know the ins and outs of the industry and are able to get you the lowest rates possible by seeking out the best policies from various providers and negotiating on your behalf. This can help you secure better insurance policies at lower premiums.

Contact the friendly Ease Insurance Brokers team today for your free, no-obligation quote.