It makes no difference who one is and what their assets are; it is a well-known fact among experts that there are really no correct answers when it comes to insurance questions. There is no specific code that informs one of how much and what kind of coverage is right and only the individual themself can really judge which policies are best for their personal needs. So it is understandable why people feel lost when it comes to insurance needs.Luckily, a large variety of easily accessible, free tools are now available that help one to figure out their insurance needs with a great deal of accuracy. The internet has been a tremendous help in this field. Almost all major insurance companies provide various tools that allow individuals to read up, analyze, collect quotes and compare policies. All this can be achieved without leaving the house or having to deal with pushy insurance agents. A lot of detailed information on insurance can be collected just by making an effort to educate oneself. Carrying out a self-assessment on insurance needs is really a simple process. One first decides what the most likely risks that one is exposed to are composed of and then should work backwards from that point to cover those exposures.
For Canadians, insurance needs are essentially made up to two things. First, cover for protecting an expensive item like a car or a house in case the unmentionable happens, and second, an income cover in case one is unable to work. Difficult a task as it is, one must be ready for all eventualities and one needs to plan for these things even when life is great.
Backtracking is the ideal way to make insurance self-assessments. One should just imagine the worst case scenario, and then determine if one can cover themselves in that eventuality or not. This kind of a stress test on major assets helps one to see more clearly. For example, what will happen if one does not have insurance and the house catches fire or the basement floods? These things are not beyond the realm of possibility. In such a case, will it be possible to pay for the clean-up out of pocket or buy a new home? If the answer is no, then insurance is necessary.
Of course, in many cases one may not find it necessary to replace an asset and thus can continue on without insurance. For example if one has a leisure boat which sinks in a storm, one can live without replacing it, and so insurance is not an absolute necessity. On the other hand, if the boat is used as a means to earn a living, then obviously it must be replaced and insurance becomes a necessity. It is this type of understanding and reasoning that one has to use when deciding what to insure and what to leave out.
Life insurance is one of the most complicated types of insurance to understand and determine the need for. Using the various analysis tools available online can help to make this process easier for individual situations. Just spending a little time using these tools and plugging in specifics like income, debts and future expenses, one can get free personalized proposals, which, if feasible, can then be refined through discussions with an agent. The best part is the fact that one is not limited to one quote or company; it is possible to get quotes for as many different policies as one desires and from as many companies as one wants. All it costs is time. It is possible to spend as little or as much time as one feels comfortable to fully understand the policy – there is no rush or pressure.
Insurance does not have to be complicated. It also no longer requires painstaking sessions with an agent whose sole interest is to push his policy. It only takes a little effort in educating oneself; all the tools are available and they cost nothing to use. Once all the information has been collected, then an agent can be approached and questioned on one’s own terms instead of being at his mercy.