• Matt Towe

Why it pays to look beyond the cost of cover

Updated: Feb 4, 2021

Price is probably the last thing you should look at before deciding if a policy is right for you. This week we also share three simple steps to help work out how much cover you really need.

On average in the UK we drink around 2 cups of coffee per day. From instant, ground beans to nifty pods it can be bought in many different forms, but generally speaking, you’ll get the same caffeine hit, albeit for a different price. Coffee is therefore a commodity.

Now think of protection, cover or insurance. Does the same apply? Do all policies do pretty much the same job for a different price? Absolutely not. However, this is where comparison sites may lead you to believe so. Fill in some fields, filter the quotes by cheapest first and hey you’ve got yourself a policy that fits a budget you’re willing to pay.

But comparing monthly costs (or premiums as they are known in the business) is probably the last thing you want to do before choosing a cover.


The best place to begin your quest for protection is to decipher why you actually need the cover in the first place. After all, you don’t want to be overpaying on a policy which is more than what you need, or equally underpaying for cover that will barely support you should you ever need to claim on it.

Your needs will depend on a number of things:

• Your monthly take-home salary

• Day to day living costs

• Employer benefits

• Mortgage / rent

Here are three simple steps to get you started. Once you’ve completed these things should become a little clearer on what level of cover you require, then you can start thinking about the budget.


1. Set a goal. What do you need to protect most – your kids, your earnings or your home.

2. Review what you’ve already got. If I had £1 for every client who doesn't know if or what their benefits package from work includes. There could be a shorter / longer level of sick pay in there that you don’t even know about.

3. Compare what insurance you want based on the cover you have and what you need to protect.

It’s also useful to weigh up the cost and coverage of a given policy against the risk of not taking out the cover. A third of UK families have less than £1000 in savings (Raisin UK, 2019), so it is worth giving some thought as to how long you could keep paying your bills should you be unable to work through illness or injury.

And remember getting expert guidance does not cost you anything. Brokers are specialised in giving guidance on the cover that suits various needs. Like comparison sites they get paid a commission by providers for recommending their products – so that’s good news for you – you won't need to pay anything to shop around and secure a deal that’s bespoke for you.

Next week, we’ll be introducing you to our first 'Adulting With' interview featuring a gorgeous home that has an interiors account to die for and gives us all the feels for simple living.



To keep up-to-date on The Modern Broker please subscribe below or follow on Instagram @gameplanmatt.

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