Many people don’t spend a lot of time thinking about their insurance cover.

You go through the process of putting it in place, and then life takes over and you don’t always give it a lot of thought on an everyday basis.

Understanding what you can expect from your personal insurance, and how to ensure your cover remains appropriate for you, can help you get the most out of it.

Common assumptions people make about personal insurance

There are a few common misunderstandings that can lead to disappointment when it comes to insurance cover.

Here are a few that are important to avoid:

I have a policy, so I am covered.

It’s great to have insurance in place, but policies won’t necessarily cover you for absolutely everything. It’s important to understand what cover you have and in what situations you could claim. Even policies of the same type can differ between insurers. Your SHARE adviser can help you look at your policy wording in more detail.

My insurance will pay out exactly what I expect.

The amount you can claim can vary depending on your circumstances and the type of event that triggers a claim. As your advisers, we can help you understand what to expect from your insurer at claim time.

Now my insurance is in place, I don’t need to think about it again.

It’s important to ensure your insurance cover keeps up with any changes in your life. Reviewing your cover after significant events such as having children, getting married, or changing jobs can help ensure it keepspace..

It’s also a good idea to review your cover at regular intervals – ideally every year.

Understand your policies

To get the most out of your insurance cover, it can be helpful to understand how it operates in practice.

Here are a few key things that people often overlook

Policy definitions and exclusions: Understanding what your policy covers, how it might respond to a claim and what exclusions apply is important. Exclusions are situations where a claim may not be payable or may be limited. That might include things like any pre-existing health conditions you had when you put the policy in place.

Wait periods and claim requirements: Depending on your type of cover, there may be a waiting period before a claim becomes payable. This may apply when the policy begins, where you need to be covered for a set period before claiming, or at the time a claim is made. For example, an income protection policy may require you to be unable to work for a certain number of weeks before payments begin.

Changes over time: Insurance policies can change over time. Premiums, your level of cover and the terms of your insurance might vary from year to year. Staying informed about these changes is important, and we can help you navigate them.

Understanding your insurance clearly from the outset helps you make better decisions and reduces the chance of unexpected issues later, especially when making a claim.

Why expectations don’t always match real-world experiences

It can be easy to think that once insurance is in place, you’ve ticked it off your list and don’t need to think about it again.

As with any financial arrangement, it’s important to ensure that your cover continues to fit your individual circumstances.

Claims often happen during stressful or emotional periods, which can make any unpleasant surprises particularly tough to handle. Being well informed ahead of time can help avoid this.

Clarity and awareness over time

The SHARE team can work with you to keep your insurance fit for purpose.

We can work with you to review your cover regularly and recommend solutions if your health, family circumstances or career change significantly.

Thinking about insurance as something that evolves with you, can help ensure you have appropriate cover when you need it.

A long-term arrangement

You could have your insurance cover in place over a significant portion of your life.

It is designed to support long-term financial resilience and should change as your life does.

Thinking about it as a relationship that you’ll carry with you rather than a product purchase can help when it comes to managing your insurance.

Want to talk?

Misunderstandings about insurance are common and can usually be addressed with the right information.

As insurance experts, the SHARE team is here to help answer any questions you have and can help you ensure your cover remains appropriate throughout your life.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.