The Importance of Insurance

According to the Cover the Insured website one of the highest age groups that are uninsured range from ages 21-44. Sixty-one point nine percent (61.9%) of full-time workers are uninsured.

If an unexpected event occurs that causes you to lose your job or become ill you could end up homeless. You should have some type of insurance no matter what your salary. Here are 3 benefits to having insurance:

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

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. All three actually work together. 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.

When buying insurance it is best to comparison shop. A website you can use to comparison shop for insurance is www.bankrate.com and www.ehealthinsurance.com. You can visit the Better Business Bureau's website at www.bbb.org to search for companies and view their reliability report. 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 ehealthinsurance.com to find information on affordable health insurance.

If you need health insurance for your children visit www.insurekidsnow.gov. For information on disability insurance visit www.about-disability-insurance.com or www.assurity.com. If you 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 insurance costs.

If you are able to purchase additional types of insurance such as home owner's insurance, auto or fire insurance, it is best to purchase bundled packages or similar insurance policies with the same company (such as insuring multiple cars with the same insurance company). Many companies give you a discount if you purchase multiple products but you have to ask for it. Purchasing bundled packages or multi-line policies can result in a savings of 1% to 20% depending on the company versus buying home owner's insurance with one company and auto insurance with another company.

How to Save Money on Insurance

Many consumers hate getting insurance because you feel like you rarely need to use it and is only need just in case something happens. For that reason, many consumers don’t purchase insurance. But, when that unexpected event happens, the cost of not having insurance can range up to the thousands.

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), earthquake, umbrella policies and many more. The three most important types of insurance everyone should have are: disability, life, car and health.

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 current salary. Life insurance is used if a family member dies and should be enough to at least cover the costs of the burial. Health insurance reduces costs if you require medical treatment, preventive care or prescription medicine. Car insurance should be enough to cover the cost if you hit someone or if someone who is uninsured hits you.

If your employer does not provide health, life or disability insurance you can purchase insurance on your own. Comparison shop to find the best rate and services that you need. You can contact the Better Business Bureau or search their website for a company's reliability report. You can also comparison shop online with companies such Bankrate or Progressive.

Get a free analysis of your existing insurance 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. Here are some tips on how to save money on insurance.

Car Insurance
1. Comparison shop
2. Increase deductible
3. Only buy what you need
4. Ask for discounts
5. Keep a good driving record
6. Drive a car with money saving features
7. Drop collision or comprehensive
8. Keep good credit
9. Ask for an annual review to make any necessary adjustments

Homeowners Insurance
1. Comparison shop
2. Increase deductible
3. Only get enough for rebuilding costs not the value
4. Make your home disaster proof or resistant
5. Make your home secure
6. Ask for discounts
7. Keep good credit
8. Ask for an annual review to make any necessary adjustments
9. Pay insurance yourself instead of the mortgage company

Renter’s insurance
1. Comparison shop
2. Increase deductible
3. Only get enough for replacement costs not the value
4. Make your rental secure
5. Ask for discounts
6. Keep good credit
7. Ask for an annual review to make any necessary adjustments
8. Choose a good location
9. Reputation of company

Life Insurance
1. Comparison shop
2. Get coverage based on your needs not based on your wants
3. Get term life until you 60 or over then switch to whole life
4. Improve your health and ask for a reevaluation if you are in a high rate/risk policy
5. Ask for discounts
6. Keep good credit
7. Ask for an annual review to make any necessary adjustments
8. Purchase insurance with no fees
9. Pay annually or quarterly

Health Insurance
1. Comparison shop
2. Exercise, improve your eating habits and improve your health. Ask for a reevaluation if you are in a high rate/risk policy
3. Ask for an annual review to make any necessary adjustments
4. Keep good credit
5. Ask for discounts or reduced rates
6. Purchase through your employer
7. Get standard coverage at a minimum
8. Use health clinics
9. Purchase generic prescription drugs