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Safe Life: Managing the Family Insurance Plan

Principles for building a suitable insurance plan

Every few days it happens: the phone rings from a “confidential” number and on the line is a representative of an insurance company trying to sell us new insurance or upgrade to existing insurance. This can be life insurance, dental insurance, additional supplementary insurance from the health fund or private health insurance. Usually, we have no idea what the essence of the proposal is, and end the conversation quickly. So let’s see these conversations as wake-up conversations that will make us check on our insurance status.

The purpose of insurance is to prevent an economic crisis resulting from extreme events and to help us save money.

FamilyInsurance Plan What is Important to Know?

  1. Existing insurances: Anorganized list of allthe insurances available to the family should be compiled: from life insurance made for the benefit of a mortgage, through car and apartment insurance, to various health insurances. This first step is necessary.
  2. Double insurance: After the family insurance picture becomes clearer, it is necessary to check if there is no double insurance, that is, if the family is not insured twice for the same possible scenario. If double insurance is discovered, you should consult with a professional to decide which insurance you should give up.
  3. Adaptation to needs: It is necessary to check whether the existing insurance plan is suitable for the needs and stage in which you are in life. It is possible that insurance made 10 years ago, when we have small children, is substantially different now that the children are older, for example.
  4. Adjustment to the financial situation: Once we are left with a good insurance plan, it is still necessary to check whether we can afford our full insurance coverage. That is, to check whether the premiums correspond to the family’s financial situation and whether it is possible to find similar products that are cheaper.
  5. Order and information: Make sure that thepaperworkdealing with insurance is organized and its location is known to the family members, so that if necessary the family members will know who to contact and what compensation they are entitled to.

In order to reach a situation in which we know very well what our insurance needs are and how to purchase the insurance coverage that suits us in all respects, it is important to meet with a professional in the field. In order to fully benefit from the meeting, you must come prepared.

How do I prepare for an insurance consultation?

  1. It is necessary to check with the professional what documents and data he must receive prior to the consultation.
  2. Accordingly, all insurance material, documents, policy terms and insurance details pages must be collected. Sometimes you have to contact the insurance companies to get the material.
  3. Here is a list that will help you locate types of insurance you may have forgotten you have (take a breath): life insurance, mortgage insurance, health insurance at an insurance company, supplementary insurance at an HMO, additional special insurance at the HMO, long-term care insurance at an HMO, long-term care insurance at an insurance company, car insurance (compulsory, comprehensive, third party), apartment insurance – building, apartment insurance – property, savings plans at an insurance company, an account in a study fund, Provident fund account. Savings for children in the bank, savings for children in an insurance company, old pension fund, new pension cream, executive insurance. Group insurance within the framework of work (life or health or loss of work capacity). Other disability insurance, business insurance, malpractice insurance, work dental insurance, private dental insurance, electrical appliance insurance, other insurance. Other savings plans in the framework of work, other insurance in the framework of work, insurance against accidents, transplant insurance and drugs that are not included in the health basket.
  4. An organized table should be drawn up mapping all the insurances that the family has.

Differential diagnosis: insurance or savings?

There are insurance plans in which part of the money is deposited into savings. With the exception of tax benefits, these insurances are similar to a bank savings plan and it is important to examine the conditions, tax benefits and the family’s current financial situation in order to decide which plan is appropriate

When a family saves but manages a negative gap between expenses and income, meaning that its expenses are higher than its income, the family, on the savings side, will have to take out a loan, which may lead to a cycle of debt. Please note, those who have to withdraw money from insurance funds before the retirement date in order to repay debts pay all the tax on the withdrawal date.

In this case, when the family’s expenses exceed its income, you should consider stopping the savings until you reach a balance and only then return to depositing. Thus, the loss is only of the tax refund for those months in which no money was deposited for the insurance.

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