Debating the merits of insurance: why it isn’t even a debate
Insurance policies have been around for a very long time. In one form or another people have been taking them out since they first started earning. And, while often it seems that insurance is expensive and a waste of money, because, ‘I never use it’; the reality is that there will come a time when you do need it and you will be lost without it.
The key with insurance is finding a way to make it work for you. You need to be practical and smart and you need to shop around. But you need to ensure that you are covered and covered well, because if you are not you may well find that your lifestyle is badly compromised. With this in mind, here are some tips to help you make your insurance arrangements more palatable.
Never think that the insurance that you are paying is the best available. You always need to shop around and get competing quotes. It is a very easy process as well; no longer something that needs to be done via a broker. For instance, if you already have public liability insurance online quote from alternative suppliers could very easily show where and how you could be saving money.
And the nice thing is that given the competitive nature of the insurance industry if you are able to show your existing partner the quote that you have received, they may well look to match or beat it – which means you don’t have to switch debit orders or make any changes.
Look at the full package
Look at the complete offer that is on the table and find ways to structure it so that you get the best deal. If all your policies (short and long term) are with the same company will you get a better discount? Are there benefits that accrue over time – long-term pay-outs or share schemes or loyalty bonuses? As much as bringing your monthly expenses down is probably your primary goal, make sure that you are not ignoring other benefits along the way.
Don’t cut corners
One of the easiest ways to bring down your monthly premiums is to increase the excess amounts that you are prepared to pay. It can make a big difference to your monthly contributions, especially when it comes to major items like house insurance.
But the flip side is this is not a real saving at all if you are not in a position to pay that increased excess in the event of a disaster. So, if this is a route that you are looking to take, make sure that you are sufficiently liquid and have enough saved to make up that shortfall should you need it.
Be smart about life
Life insurance is very important at a certain stage of your journey, but it is not always necessary. Some people go on paying it forever, but this really isn’t wise or necessary. We all know that we are going to die – that cannot be avoided.
Life insurance is critical when you have debt that you want to be paid off in the event that you die (like a mortgage) or if you have children, whose education and future you wish to secure once you are deceased. But if you are older, you bond paid and your children safely living in eth real world, then life insurance really is an unnecessary expense.http://www.finance4founders.com/debating-the-merits-of-insurance-why-it-isnt-even-a-debate.htmlInsurance