Saving Money On Things You Don’t Even Want to Buy But Have To

Save MoneyThere are lots of costs in life we would rather pass on. Most of these things fall under the category of insurance. Life insurance, homeowner’s insurance, business insurance, auto insurance, renter’s insurance, health insurance: they are all things that we pay a premium for and hope that we will never ever have to use (well, except for life insurance; so far skipping death hasn’t been doable).

This makes a lot of us opt, almost across the board, for the cheapest policies available. Paying as little as possible takes the sting out of having to pay for this (hopefully) non-usable thing a little bit. Unfortunately, this is the wrong way to go. When you buy bargain basement policies you set yourself up for future financial disaster. Why? Because the bargain basement insurers are great at finding loopholes and technicalities that get them out of having to pay out on your policy at all. With a bargain basement policy you are literally paying for something you won’t get to use and isn’t that that’s worse than hoping that you won’t need it?

We don’t mean to say, though, that you should fork over all of your cash for the most expensive policies either. Just because something is expensive doesn’t mean it is necessarily better.  No, what you have to do is look for the right policy for the right price. Here is how you do that.

Do Your Research

At this stage in the game, you need to learn everything you can about what this particular type of insurance policy actually does. You need to learn the lingo. For example, “deductible” is the amount of money you can expect to pay out of pocket before your insurance policy kicks in and covers everything else. You’ll also want to look at coverage terminology, as well as the basic laws of insurance and insurance coverage in your state. The more you know about what insurance is, the language it uses and how it is governed in your state, the better able you will be to pick a policy that will actually work for you…and the less likely you will be to get taken advantage of by an insurance company.

Reduce Your Costs

The type of car you drive plays a large role in the amount of money you will pay for an insurance policy. Newer cars, cars that have safety issues, etc. are more expensive to insure. The more expensive your belongings, the more your home or renter’s insurance policy will cost. Now, nobody is going to tell you to trade your car in for an older model or to get rid of family heirlooms. If you’re in the market for a new car, though, consider an electric and super safe model. Consider keeping smaller expensive and important items in a safety deposit box instead of in your closet.

Look for ways to reduce the amount of coverage you need where you can. For example, if you’re shopping for a homeowner’s policy, consider installing a security system. It will cost more now, but you could make up that cost in insurance savings.

Shop Around

Once you know how to read and compare policies and you know the value of what you’re covering, it is time to go shopping. Take your time here. Compare the details and price of each car insurance policy. Which companies give you a better value for your dollar? Which policies will actually cover you and pay out when you need them?

Whenever possible, do your research and shopping around with real people. Talk to or, even better, meet with actual agents in person. Get each quote in writing. This way, if you decide to buy, they can’t unexpectedly charge you more than you had talked about in your initial consultation. Written quotes also give you leverage when shopping for a policy. Most insurance companies want your business and are willing to price match to get it. If you can provide written proof that the same coverage costs less with another agent, you might be able to negotiate a cheaper rate.

The point is that you don’t have to settle for terrible coverage or ridiculously high prices. When you do your homework and you take steps to reduce the amount of coverage you’ll need (where applicable), there is no reason that you shouldn’t be able to get the perfect amount of coverage for the perfect price.

Have you recently found a hack that will allow you to reduce the cost of those expensive necessities in life (the kind you don’t want to buy but can’t go without)? Share your advice in the comments!

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5 Reasons Why You Need Life Insurance

Life insurance is one of those things that you hear about often, and figure you probably need, but for whatever reason you just never seem to pull the trigger. Perhaps it’s a bit of a phobia – realizing that you will die relatively soon, or maybe you just don’t care for the extra payment that comes with life insurance each month. Whatever the case may be, it is still likely that you should have life insurance. Here are 5 reasons why:

1) Your Savings Wouldn’t Cover Your Own Funeral

As each month goes by, you might realize that your savings account will always look pretty bleak. If you died today, would have you enough money in your account to cover a $10,000 funeral? For most, the answer is likely, “No”. If this is the case, then perhaps a small life insurance policy would make sense. Those that are fronting the costs of the funeral would receive the funds from your life insurance policy to cover those expenses.

2) Peace of Mind For Your Spouse

Many times, insurance is simply assurance for your spouse. Getting through everyday life is hectic enough. Your spouse doesn’t also want to think about what he/she would need to do if you died next week! Insurance can often make a relationship much less stressful because there is never a question of what would happen financially when you are covered by life insurance. Do you want your day to day life to be more peaceful? Then perhaps you should buy life insurance online to mitigate those concerns!

3) You Have Kids That Are Costly

If you have small children, then you know they can be costly. Clothes, food, shelter, diapers – these items can really add up! And, what about their college funding? Is that in place? Again, many may not have considered this costly future event. If you planned to help your kids out with college and it would have been a struggle while you were alive, what if you passed away? Do you think your spouse would be able to afford that additional cost? Life insurance can be a possible solution for this scenario as well. Since the insurance company would pay out as a lump-sum, this amount could, in theory, be applied to the college tuition. Your kids would definitely love you for taking care of their steep college costs!

4) Your Work at Home is Worth Much

If you are a stay-at-home mom, you might not receive a weekly paycheck, but your services are definitely valuable! Think about how much it would cost to put your kids in daycare every month. Many times, this cost can be $1,500 or more! If you were to pass away without life insurance, then this is exactly what it would cost for you since you would have to put your kids in daycare while working a full-time job to survive! It is not a pretty picture, and many people that are put in this situation sure wish they would have had life insurance.

5) You’d Like to Leave an Inheritance to Your Adult Children

There are many older adults that are starting to worry about the costs of health insurance and long-term care. Chances are, these items alone will eat up their savings accounts, allowing them to leave nothing to their adult children. If you are in this scenario, then perhaps a life insurance policy would be a feasible way for you to pass on an inheritance to them.

Don’t Wait Until It’s Too Late

We are all guilty of dragging our feet at times, but when your family is depending on us to cover costs and provide for their well-being, then dragging your feet simply shouldn’t be an option. Can you relate to any of the above reasons to buy life insurance? If so, then I would suggest talking to your family about it, and also to a certified insurance specialist. Setting up a policy probably won’t be fun, but it’s just a necessary step in being an adult and taking care of things, even after you’ve passed away.

Are you in need of life insurance today?