Many of us don’t want to take the time to think about insurance. We keep putting it off until, god forbid, something unfortunate happens. If you don’t want to be left with a lifetime of bills and you want to lower your stress level, it is essential to be properly insured. These tips can help:
1. The type of insurance you buy and how much coverage you need are individual choices. Only buy from reputable insurers. This is very important. I ask friends I trust to recommend insurance agents and/or policies to me. Check many different providers-- sometimes we think we can get a “bargain” from no-name companies, but I have found that the biggest and well-known insurers have comparable or even lower prices than others. And they are less risky in terms of going out of business, leaving you uninsured.
2. Homeowners or renters insurance: Something I believe all of us need if we own our own home or are renting a home. Your agent can discuss the approximate dollar amount you need based on the size of your home and location. Ask about jewelry insurance and other valuables that you would like to be listed separately. Usually insurance companies list separately articles, furniture, furs and jewelry with value greater than $2500 per item.
3. Car Insurance: Absolutely necessary if you own or lease a car. Check online quotes too. Compare prices based on different deductibles. If you have a higher deductible and can afford small scratches, dents, up to $1500 for example, then a higher deductible might save you money in the long run. Also, ask for the safe driver special discount if you haven’t had an accident in the past four or so years.
4. Life Insurance. If you don’t have any dependents, there are not many reasons you would need this. If you do have dependents, call a few reputable agents, the rule of thumb is usually taking a policy for seven or eight times your annual income.
5. Health Insurance is very important! You are your most important asset. I suggest getting the very best health insurance you can afford. I suggest first asking your employer if they provide health insurance or if they put money towards a health insurance policy. If not, call around to a few agents and comparison shop.
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