While many people are underinsured, some of us are carrying more insurance than we need. We may have too much or the wrong kind. There are times when dropping your insurance coverage makes sense. Making unnecessary premium payments is wasteful. Always seek to make the best use of your financial resources.
Consider these circumstances:
In a world with seemingly unlimited insurance opportunities, there are times when it makes sense to drop certain policies and use the money for other purposes. Sometimes dropping your insurance is the financially responsible thing to do. Determine if all your insurance policies make sense for your situation and adjust accordingly.
, and even offer Living benefits
Part of your financial plan should include protecting your assets, including your possessions, as well as your income, loved ones and health-related financial concerns. Insurance isn't very exciting, and it can certainly be expensive. But when you need it, you’ll be glad you have it. Unfortunately, there’s no single policy that will give you all the coverage you need.
Take inventory of your insurance coverage. Do you have these 5 important policies?
Life insurance protects those people who depend on you financially if you die unexpectedly. Consider the hardships on your loved ones if you should happen to die prematurely, and some offer living benefits paying you when you overcome the illness or accident.
How do you determine how much life insurance you should get?
Consider these matters:
No one likes to think about these things. However, if you deal with it now, it's something your family doesn't have to deal with later.
Health insurance is expensive, but health care is expensive too, really expensive. A simple trip to the doctor can easily be several hundred dollars. A routine surgery that only results in being in the hospital for a couple of hours can be over $10,000.
Health insurance costs are a burden, but the cost of a genuine medical issue can be catastrophic.
If this isn't something you can get through your employer, be prepared to do some legwork to find a policy that’s right for you.
Long-Term Disability Insurance
This insurance replaces a portion of your lost income if you become unable to work. The cost depends on the amount of income that you wish to replace, your age, health, the length, and the limits of coverage. Policies will also differ regarding what they consider to be a “disability.”
This coverage can also be quite expensive. Hopefully, you can also get this through your employer. If not, sit down with your life or health insurance agent to go over the details of this important insurance.
If you still owe money on your home, your lender requires homeowners insurance. If you don't owe money on your home, you should still carry this type of financial protection. Consider how many thousands of dollars your house and the contents would cost to replace.
The price of homeowners insurance is quite small compared to the amount of coverage you're getting.
Besides covering the structure of the house and its contents, some policies will even cover putting you up in a hotel until your house is repaired. Any injuries that occur to friends and strangers are also covered under your house policy.
Consider what you need; there are a lot of options for benefits, limits, and price.
Nearly all states require automobile insurance to varying degrees (New Hampshire is the exception). Everyone should have coverage, even if you drive a 1975 Chevy Nova that has been paid off for years. Even in that case, you’re still financially responsible for the damage you cause to other vehicles and property.
Without automobile insurance, you might face a lawsuit that could potentially cost you everything you own. Ensure you have all the coverage you need, not only for your own vehicle, but to cover your liability as well.
Insurance isn't exciting or sexy, but it's a necessity. When looking at new policies, shop around because prices and coverage can differ widely from one company to the next.
One tip to save some money: Get a policy with a higher deductible. The more you have to pay before the insurance kicks-in, the less that insurance coverage will cost you.
Do your homework and find an insurance professional you can trust. Don't just focus on what insurance costs you; think of what it will cost you if you don't have it.
Is it true that a good life insurance agent is hard to find? The vast majority of people living in the United States will at some point face the specter of purchasing life insurance. And when it comes to buying something so important to the lives and protection of your family members, you definitely need a good life insurance agent who can help.
But how do you know when you find a life insurance agent that will inform you about all the products available and honestly advise you regarding how much life insurance you need?
Consider the following tips to find a good life insurance agent:
No one wants to consider a premature death, but failing to do so can create serious financial difficulties for those you leave behind. Getting this aspect of your financial plan under control is important.
There are more than 2,000 companies selling life insurance in the United States, all offering similar products. Finding the right product at the right price for your situation can be a challenge.
If you own a home, homeowner's insurance is a necessity. Although it's not required by law, if you borrow money to buy a home, your lender will almost certainly require that you have homeowner's insurance to help them protect their investment.
Even if your house is completely paid off, it's still a good idea to carry homeowner's insurance to help protect your investment.
In either case, there are steps you can take to avoid overpaying for your insurance coverage.
Check out these tips to help ensure you’re paying the lowest possible rates: