3. Do you really need that annual policy?
It’s yet another example of how insurance companies earn money by confusing clients. Agents will suggest to you that these days annual propositions are highly gainful. However, you’ll need to check if you really need an annual policy. A good example is when buying travel insurance. Maybe you only need it for 10 days of vacation but if you’re not careful, you are likely to pay for the whole year, thereby giving away more than 10 times the amount of money you could have paid for it.
Sometimes annual insurance is necessary but only if you intend to cover things you do or use regularly so as to justify the huge expenditure.