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, renter’s, 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
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
- Get term life until you 60 or over 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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