Insurance - 10 Tips on How to Buy Insurance
By Ali Bierman
Insurance-what a big topic. There are many kinds of insurance. Regardless of the kind, here are ten tips to guide you in making wise choices and avoiding paying more than you need to.
1. Take a look at all your insurance policies. Get rid of all the fluff. Cut off all the fat expenses you are paying for. Eliminate double coverage. (Often your car insurance charges for service already covered under your health insurance.) Find out the minimum requirements in your state for your auto insurance. Take a look at what you really, really need in your health insurance. What 's actually going to be covered?
2. Consider the amounts of your deductibles. Look at all the optional additions and evaluate whether or not they are right for you. Calculate and see if you would do better putting aside the amount of money the policy will cost. Often you come out ahead investing that money into a special bank account. However, big caution here-this takes discipline. Taking it out each month and never touching it for "unexpected expenses-that takes a commitment on your part. Do not choose this alternative unless you know you will follow through.
3. If you stay healthy, consider only paying for catastrophic insurance and hospitalization. Or a combination of high deductible healthcare insurance with an add-on of hospitalization/catastrophic insurance
4. Do not be like most people who just assume that whatever the insurance agent sells them is what's right for them. How about not counting on somebody else for your best interests? They may sell you whatever pays them the highest commission.
5. When purchasing home mortgage insurance make certain you have enough coverage to replace the structure at present costs. Also recognize you only pay insurance for the house itself and not the land on which it sits.
6. Shop around. Look online for insurance comparisons. You eliminate the agent and the prices tend to be lower. Make the time to find the best deal with the best coverage for you. For me, the cost of auto insurance varied by as much as $300+ when I compared policies online. And carefully note whether the payments are for 6 months or for 4 months that cover a 6-month period.
7. Pay attention to details and always compare apples to oranges. Online you can look at different policies side-by-side to be sure you will get the same coverage in different plans from different companies.
8. When you see an application fee online go to another company. You do not need to pay someone to see if you qualify for their insurance plan.
9. Make sure you check out any company you think looks good. Do a Google search for The Better Business Bureau Online to check for any complaints. See the rating at A.M. Best for life and health Insurance to know how stable the company is to be sure they pay out on claims
10. Talk to your financial advisor about setting up a life insurance policy that gets paid out of your retirement account and gives you many financial benefits the usual life insurance sales person may not know about, may not be able to sell-or may not want you to know about because the commissions may not be as high.
Take a look at what you need. Eliminate what you don't need. The only way to do that is to educate your self. It's all about education, isn't it? Know what you want in your financial world. Find out how to accomplish it. And fulfill on those desires!
Be well and happy! In the end nothing else matters!
What you focus on expands and manifests in your life. What thoughts play in the background for you regarding money? Discover how your brain and mind influence your choice of focus completely out of your awareness--and what to do about it.
Download my free ebook "What You Don't Know You Don't Know" here:
http://creatingthelife.com/ebook1.html