Assessing insurance needs: Why is it important?

The need to take out insurance becomes necessary, even mandatory at some point, especially in the context of family life. This allows you to take shelter while anticipating potential unfortunate events that may occur in the future. However, to ensure that you make the right insurance choice, it is important to go through the evaluation stage. What is the assessment of the need for insurance and how is it advantageous to you? We tell you about it in this article.

Why conduct an assessment of the need for insurance?

The very concept of insurance is defined as obtaining a security guarantee after the occurrence of a disaster. Thus, a person uses insurance when he considers that it is necessary to cover a risk related to one of his possessions.

It is then necessary to carry out an assessment of the insurance needs of customers to offer them the insurance contract adapted to their situation. In addition, the assessment of insurance needs is an approach that makes it possible to make customers aware of their real priorities. They will then be able to better manage the risks.

With all the products that insurance companies offer, it is better to evaluate your needs to avoid ending up with all kinds of insurance that are not always useful. Let’s see how to assess customers’ insurance needs in 3 steps.

Identification of the individual’s needs

To successfully assess customers’ insurance needs, you must first identify them. This is a step that makes it possible to identify all the cases for which the customer may need insurance.

It is good to know that each customer’s need must be studied so that we know concretely the insurance contract that will perfectly meet the identified needs. The client must therefore provide the right information with which he can be properly advised.

Assessment of potential risks to be covered

The second step in assessing a client’s insurance needs is to assess the different risks they want to cover. This will make it possible to prioritize the risks in the right order in order to direct the customer to the insurance contract that suits him best.

The assessment of the need and the different risks must be done with a professional in the field. When you have property such as a car, a business or any other property, damage insurance is the best solution for you. Indeed, in the event of a claim, you have the possibility of receiving compensation from your insurer. This indemnity concerns both civil liability and property.

In this case, a replacement cost will be calculated from the beginning to know the value of your property, in order to restore them once a disaster occurs.

Insurance Consulting

It is important that the customer is aware of the risks to be covered before opting for any insurance contract. This necessarily involves the insurance consulting stage. This is the domain of the insurer who has the obligation to provide the customer with all the necessary information.

However, this role can also be played by the financial planner who will be able to determine your knowledge of the product you want to subscribe to in order to direct you to the best offer.

Specific case of the mortgage

If you are an individual and you want to acquire real estate, it would be wise for you to get a mortgage, if you are short of finances. However, there may be times when you encounter difficulties when paying off the mortgage you have taken out. To overcome this, you can opt for mortgage insurance in order to guarantee the continuity of payment even when you are disabled, unemployed or sick. This is a great way to ensure risk management and cover yourself in case of a delicate situation.

In this case, even before taking out your loan to switch to the mortgage, it is necessary to call on a broker. The latter will be able to proceed with a mortgage brokerage, serving as an intermediary between you and the financial institutions to allow you to obtain the financing adapted to your situation.

For an individual, having personal insurance is fundamental to ensure the protection of his possessions. Nevertheless, it is necessary to go through the insurance needs assessment stage in order to prioritize risks and manage them. Thus, it is necessary to call on a financial planner like Planico, to obtain a suitable insurance advice.