Don’t Have Insurance Yet: Here’s Why You Should Get Some

September is National Insurance Month and is a great time to get insurance or review your current policies.  There are several types of insurance available: life, health, dental, home, auto, fire, flood, credit card insurance, 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 still continue to receive a paycheck, usually at least 60% of your salary. Life insurance is used in the event a family member dies.

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.

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.

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 tips on what to look for when buying common types of insurance.

Car Insurance

1. Only buy what you need
2. Keep a good driving record
3. Drive a car with money saving features or eco-friendly features
4. Drop collision or comprehensive

Homeowners Insurance

1. Only get enough for rebuilding costs not the value
2. Make your home disaster proof or resistant
3. Make your home secure
4. Pay the insurance yourself instead of the mortgage company

Renter’s insurance

1. Increase deductible
2. Only get enough for replacement costs not the value
3. Ask for an annual review to make any necessary adjustments
4. Choose a good location

Life Insurance

1. Get coverage based on your needs not based on your wants
2. Get term life until you 60 or over then switch to whole life
3. Ask for an annual review to make any necessary adjustments
4. Pay annually or quarterly

Health Insurance

1. Exercise, improve your eating habits and improve your health. Ask for a reevaluation if you are in a high rate/risk policy
2. Ask for an annual review to make any necessary adjustments
3. Ask for discounts or reduced rates
4. Get standard coverage at a minimum

Why You Still Need Insurance

September is Life Insurance Awareness Month which reminds consumers of the benefits of having life insurance. The recent earthquakes and hurricanes that the east coast experienced last month are another reminder why consumers need insurance. Many homeowners and auto owners suffered loss or damages due to the earthquake and hurricanes. For those who did not have insurance, repairs will be costly.

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. Three benefits to having insurance are:

a. Can be used to reimburse for a loss that occurs
b. Protects against harm to something or someone
c. Saves you money in the future

There are several types of insurance available: life, health, auto, fire, home, dental, flood, disability (short-term and long-term), and many more. The three most important types of insurance everyone should have are: disability, life and health.

Get a free analysis of your existing coverage to see if you have enough or too little coverage. Many consumers have more coverage than needed. Many consumers get the coverage suggested by their insurance agent and don’t bother to answer questions or comparison shop.

When you purchase a new car, it is wise to get collision and comprehensive coverage but as your car gets older you may only need to have collision coverage. This step could save you anywhere from $50 to $200 a month. Collision coverage should be adjusted annually or every two years and should be based on the value of your car. Also, verify your liability coverage and adjust as needed. Here are 10 ways to save money on insurance.

1. Increase deductibles. Increase deductibles to lower your monthly premium. This will save you money and prevent you from filing minor claims which can increase your premium.
2. Assess. Assess the assess the replacement value of your insured items – car, home, health, etc. If you house is worth $200,000 or the cost to rebuild you home is $200,000 but you only have coverage for $100,000, you need to adjust.
3. Reputation. Research the insurance company on the Better Business Bureau website or the internet to gather information on any complaints or the quality of customer service.
4. Home. Consider waving payment of your homeowner’s insurance by your mortgage company and pay it on your own. This can save you anywhere from $50 to $300 a year.
5. Health. Many consumers file bankruptcy or have bad credit due to medical bills. The increasing high cost of health care services and prescriptions is the main reason why everyone should have health insurance including dental and vision insurance if you wear glasses.
6. Life. Adjust your life insurance policy as home environment changes. Update every 5 years and when your children become adults, your spouse retires, etc.
7. If you have multiple insurance products with different companies contact each company and get a quote for bundling your products to help you save money.
8. Companies always provide discounts or specials but do not always advertise them. Every 3-6 months call each service provider and ask if they are offering any specials and what discounts they have available for the services you currently have.
9. What If. List different scenarios that could happen and make sure you have enough insurance coverage for each scenario, i.e. job loss, sickness, death, new baby, loss of health insurance or other benefits, car repair, etc.
10. Research. Comparison shop for insurance with sites such as Bankrate, Progressive, AARP or ehealthinsurance.com to find the best insurance coverage.

Getting the right coverage will save you money in the future and help you get over any financial crisis you may experience.

Should You Buy Insurance

Everyone should have some type of insurance no matter no matter what your salary. Insurance is used to reimburse for a loss that occurs or protects against loss or harm to something or someone.

There are several types of insurance available: life, health, dental, home, auto, fire, flood, credit card insurance, disability (short term and long term), and many more. The basic types of life insurance everyone should have are: health, life and disability. All three actually work together. Health insurance is needed if you ever 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. Having at least these three may affect your pocketbook now, but will cause you less headache and expenses in the future.

According to the National Health Care Coalition, nearly 46 million Americans are uninsured. A study by Harvard University researchers found that 50 percent of all bankruptcy filings were partially the result of medical expenses. Since 2000, employment health insurance premiums have increased 73 percent.

I had surgery in May 2006. I stayed in the hospital overnight. I was checked into my room at 7:00 pm and was released at 12:00 noon the following day. I received some basic medication and had staff assist me. The total bill for less than 24 hours was $12,000. This did not include the cost of surgery. The total bill was $20,000, luckily I had health insurance and only had to pay $5.

Many people go into debt and have bad credit due to medical bills from lack of having some type of insurance. When buying insurance it is best to comparison shop. You can also go to the Better Business Bureau's website at www.bbb.org to search for companies and view their reliability report.

A few good websites you can use to comparison shop for insurance are www.bankrate.com and www.progressive.com (for auto insurance). If your employer does not provide health insurance , life or disability insurance you can purchase insurance on your own. Go to ushealthcare.port5.com or www.healthinsurance.org (for selected states) to find information on affordable insurance. If you need insurance for your children visit www.insurekidsnow.gov. They also offer accident and critical illness insurance. For information on affordable disability insurance visit www.about-disability-insurance.com or www.assurity.com. If you really cannot afford to purchase insurance make sure you get enough rest, eat well and exercise. Try to get a part-time job to pay for the insurance.

If you are able to purchase additional types of insurance some as home owner's insurance, auto or fire insurance, it is best to purchase bundled packages or insurance several types of the same item with the same company (such as insuring multiple cars with the same company). Many companies give you a discount if you purchase multiple products but you have to ask for it.

For example, I purchased my home and auto insurance with the same company and saved about 15% of the total cost versus buying home owner's insurance with one company and auto insurance with another company. Purchasing bundled packages or multi-line policies can result in a savings of 1 to 25% depending on the company. As my grandmother used to always say, "it is better to be safe, than sorry". At the very least try to purchase health insurance for yourself and your family.

For more information and resources on insurance visitwww.ahrq.gov/consumer/insuranc.htm#head10, www.healthinsuranceinfo.net, www.prweb.com/releases/2006/9/prweb435162.htm, ask.hrsa.gov/pc, www.cms.hhs.gov/home/medicaid.asp (Medicare and Medicaid), https://perfdata.hrsa.gov/mchb/mchreports/Search/search.asp (maternal bureau information), www.life-line.org (click on glossary to get common insurance definitions), www.travelers.com (auto, home, rental insurance).

Harrine Freeman is the CEO of H.E. Freeman Enterprises, a credit repair and money management services company.
She is a member of the American Association of Daily Money Managers.
She is a credit repair expert and the author of, "How to Get Out of Debt: Get an "A" Credit Rating for Free Using the System I’ve Used Successfully with Thousands of Clients. For more information on how to get out of debt or to buy my book please visit http://www.hefreemanenterprises.com. She can be reached at hfreeman@hefreemanenterprises.com