September is
National Insurance Month and Life Insurance Awareness Month and is a great time
to purchase insurance or review your current insurance policies. There are
several types of insurance available: life, health, dental, home, renters, auto,
fire, flood, disability (short term and long term), and many more.
The basic types
of insurance everyone should have are: health, life and disability. Health
insurance is needed if you develop a health condition or need to go to the
emergency room. Disability insurance is used if you have a short-term or
long-term medical condition that prevents you from working and ensures that you
continue to receive a paycheck, usually at least 60% of your salary. Life
insurance is used in the event a family member dies to cover at a minimum
burial costs.
Insurance is a form of
protection against loss, damage or theft. Insurance is not a way to invest your
money. No matter what an insurance agent tells you insurance cannot help you
gain wealth. Insurance provides reimburse for loss or damages. However, you can
purchase riders that can provide cash benefits at an extra cost. Life insurance
may provide money to your heirs when you become deceased depending on your
policy coverage and amount.
Get a free analysis of your
existing coverage to see if you have the right amount of coverage. When buying insurance it is best to comparison
shop. You can contact the Better Business Bureau or search their website for
companies and view their reliability report. Get at least three price quotes.
If you are able
to purchase additional types of insurance, it is best to purchase bundled
packages or buy several insurance policies with the same company to save money.
You may not see
the immediate benefit of buying insurance now but in the end, you will be glad
you did. Buying insurance will save you money in the future and may help you
get over a financial crisis. Here 20 ways to save on the common types of
insurance.
Life Insurance
- Get coverage based on your needs not based on your wants
- Get whole life versus term life or get term life until you 49 then switch to whole life
- Ask for an annual review to make any necessary adjustments
- Pay annually or quarterly
Health Insurance
- Exercise, improve your eating habits and improve your health. Ask for a reevaluation if you are in a high rate/risk policy
- Ask for an annual review to make any necessary adjustments
- Ask for discounts or reduced rates
- Get standard coverage at a minimum
Homeowners Insurance
- Only get enough for rebuilding costs not the value
- Make your home disaster proof or resistant
- Make your home secure
- Pay the insurance yourself instead of the mortgage company
Renter’s insurance
- Increase deductible
- Only get enough for replacement costs not the value
- Ask for an annual review to make any necessary adjustments
- Choose a good location
Auto Insurance
- Only buy what you need
- Keep a good driving record
- Drive a car with money saving features or eco-friendly features
- Drop collision or comprehensive
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