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: health, life, disability, dental, home, renter’s,
auto, fire, flood 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 still 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 should not be used as a form of investment or to get extra
money. Insurance should provide enough
to reimburse for loss or damages.
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 long run you will be
glad you did. Buying insurance will save you money in the future and help you
get over any financial crisis you may experience. Here 20 ways to save on
common types of insurance.
Life Insurance
- Get coverage based on your needs not based on your wants
- Pay annually or quarterly
- Get term life until you 60 or over then switch to whole life
- Ask for an annual review to make any necessary adjustments
Health Insurance
- Get standard coverage at a minimum
- 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
Homeowners Insurance
- Pay the insurance yourself instead of the mortgage company
- Only get enough for rebuilding costs not the value
- Make your home disaster proof or resistant
- Make your home secure
Renter’s insurance
- Only get enough for replacement costs not the value
- Increase deductible
- Ask for an annual review to make any necessary adjustments
- Choose a good location
Auto Insurance
- Only buy what you need
- Drop collision or comprehensive
- Keep a good driving record
- Drive a car with money saving features or eco-friendly features
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