Define your budget and other keys to choosing the right insurance for your needs

Make sure It is a key contribution to financial well-being, which is why Bancolombia provides some keys to choosing the right insurance.

Cultivating financial well-being has basic steps or keys that anyone can follow in their daily lives. The first thing is to save: Ideally, we should save 10% of our income, but if that’s not possible, putting away what we can is helpful to encourage the habit of saving.

(Also read: Disability insurance: cases when the pension benefit is valid and how to claim it)

“In the formula of financial well-being Learning how to insure yourself is also important. These products are a key element in financial planning because they guarantee the protection of assets and give us peace of mind in the face of unexpected situations,” says Cristina Arrastía, Bancolombia’s vice president of business, who surprise with job offers until the end of 2023.

There are different types of insurance today which provide cover in the event of unexpected events such as accidents, illness, loss of employment or property damage.

Steps to choose insurance

The choice can be overwhelming for some people due to the large number of options available in the market.

For this reason and with the aim of continuing to support the financial education of Colombians, Bancolombia explains some of the keys To choose the right one:

Understand the options:

There are different types of insurance, the most common are:

  • Life insurance: guarantees financial support to entitled persons in the event of the death of the person taking out the insurance.
  • Vehicle insurance: Protects the vehicle in the event of an accident and/or theft.
  • Health insurance: guarantees reimbursement for medical services.
  • Household insurance: It protects the house and can be supplemented by protecting its contents.
  • Travel insurance: offers cover in case of travel accidents.
  • Pet Insurance: covers veterinary expenses that may arise unexpectedly.
  • Liability insurance: covers damages caused to third parties. For example, if you accidentally cause damage to your neighbor’s property, the insurance company will cover the costs of their replacement.
  • Business insurance: In case of damage or loss of business, it protects the property of entrepreneurs and entrepreneurs.

Identify needs:

Assessment of needs and priorities is key. Asking yourself about your own future or the future of your children or partner, considering whether you have assets, investments or businesses that need to be protected, among other things, helps to understand what type of insurance to take out to guarantee financial support for the family and guarantees for assets. Except, A businessman defrauded an insurance company of more than $500 million in fake disability payments.

If several are needed, they can be prioritized in the list to determine which ones are to be covered first.

(See also: New home buyers, unprotected: left without important insurance)

Define the budget:

One of the first keys in personal finance is creating a budget. Ensure that there is a category for insurance that adapts to the monthly income of the person, family or business and for this it is necessary to have control over expenses.

Cite and compare:

After finding out what type of insurance is required and what is the budget, you need to compare the offers in the market. By the way, According to the survey, Colombians would choose to insure their pets over their partners.

It’s important to compare rates, coverage and terms to get the best option or even find seasonal deals.

Seek expert advice:

It is always a good idea to seek advice from an insurance advisor who will find the best options for each case with personal attention.

Read all today’s economic news here.

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