The complexity of the subject means that you must be well-informed. But this means knowing the questions to ask to get the insurance answers you need.

To most people, insurance is a depressing and arcane subject. It deals with death and loss and is so full of complexities, jargon and variables as to make it beyond the comprehension of the layman. This results in a blind acceptance of what insurance agents and brokers advise. And while these people are, generally speaking, not out to cheat you, they are human and can misunderstand client needs and situations or make mistakes in the advice they give. It is essential that before buying insurance you understand what you are getting into so you can be sure if it is the kind of insurance you need. That means being able to ask the right questions to get informative insurance answers.

Since insurance covers every facet of life, personal as well as business, there can be no defined list of questions to be asked or insurance answers to be obtained. The best way to approach the subject is to clearly understand why you need the insurance and then ask questions that will provide you with the insurance answers that will tell you if your needs are being met.

Suppose you have your own business. Some forms of insurance, such as workers compensation, are mandated by law, so you don’t need to question if you must have it. But you do need insurance answers that tell you the options available, how much they will cost and the types of benefits available under the different plans. What about liability? If you have trucks doing deliveries you should be insured against liability in the event of an accident. The insurance answers you want are those that tell you what the liabilities could be, the cost of the policy options and the optimum and most cost-effective.

Another example of the insurance answers you need would be for personal insurance in the form of a home insurance policy. Does the policy you are planning to take cover all the valuables and antiques you have in your home? Do you need protection against earthquakes or floods and is the extra cost worthwhile? Should you be protected for liability in case a visitor slips on your floors and is injured? It is this kind of information that you must have.

Insurance agents are a great resource when buying a policy. Their expertise can give you the guidance and insurance answers you need to get the most beneficial policies at the best cost. But by taking the time to objectively understand what you are insuring against and why, you will be able to ask the questions that will get you the insurance answers you need. This will help you to better understand the coverage you will be receiving. Additionally, providing you with the inputs you need will enable the agent to understand your situation and needs more accurately and so enable him to more effectively guide you to the right policy.