BUying insUrance

Make sure you get the right insurance to meet your needs, which may change over time. Be sure to
evaluate your situation from time to time, as you may need to update your policy after major life
events such as:
• starting a family
• buying a home
• starting a business
• buying a new vehicle.
Your decisions about the type and amount of insurance you get will depend on your situation, your
budget, your personal beliefs and the value of what you are insuring.
Know what insurance coverage you already have so that you do not buy unnecessary coverage. For
example, your employer’s benefits plan may offer supplementary health coverage, or travel health
insurance may be included if you pay for your trip with a credit card..

                                                           Tip

You may be able to get better prices if you are a member of a union, association or club. Many
insurers offer special lower rates for group coverage. However, coverage usually ends when
you are no longer a member of the group or reach a certain age.

When buying insurance:
• Evaluate yoursituation to determine what risks you may need to insure against. You may also wish
to have an emergency savings fund to protect you against some of the smaller financial risks.
• Shop around and compare both the coverage and the prices. Some policies may be cheaper but
may not offer the same level of service or coverage.
• Be sure to get enough insurance. If you make a claim, your insurer will only pay up to the maximum
amount insured by your policy.When deciding how much insurance you night need, consider the
value of the item you are insuring and the full financial impact of paying for the loss or event you
are insuring against.
• For those types of insurance that have a deductible, determine how much of a deductible you
can pay if you need to make a claim. Generally, a higher deductible will reduce your premiums,
but you will need to pay the full amount of the deductible if you make a claim..