Insurance. Do You Need It?

Insurance is one of those words that put fear into our hearts. Why? Insurance means paying out money, and in some cases, a lot of it. The question you need to ask yourself is; do I need this insurance? If so, can I get it cheaper?

What Insurance Do I Need?

Everyone has their own set of circumstances, and each one requires (or doesn’t) different levels of insurance. So how do you decide what you need? Let’s look at the major ones:

Contents Insurance

Many people confuse home and contents insurance. Home insurance covers the physical building, and contents insurance covers all your furniture and other items inside the building. Once again, this can be costly if you don’t really need it. 

 

If, for example, your most expensive asset is your laptop or mobile phone, then you probably don’t need contents insurance. However, if you have priceless works of art, designer watches, or lavish jewelry, then it’s a no-brainer to take out this type of insurance.

Life Insurance

The question to really ask about whether you need life insurance is, who will benefit when you die? If you are the primary income generator for your family, and they rely on this income, you need life insurance. If you’re a single person with a couple of cats, do you need to pay for costly life insurance? Probably not.

Travel Insurance

Travel agents worldwide want to sell you travel insurance, as they make quite a hefty commission on it. Do you need this? In a word – yes! If you get injured while on holiday, especially in a foreign country, the medical bills could bankrupt you. Travel insurance will cover most accidents and emergencies away from home, and even cover return flights if the injury is severe.

How to Save on Insurance

Insurance comes in many forms, and with just a bit of research, you can find many ways to save on this.

Life Insurance

Every financial institution wants to sell you life insurance. It’s a big money-maker for them. Check with your employer; they often have group plans that you can be a part of, and the rates are much less, as more people are included in the policy.

Travel Insurance

If you’re buying this from a travel agent, ask them for a discount. They have quite a high percentage of commission they can choose to deduct if they really want the sale, so ask away. Online is a great way to buy, and you can compare as many companies as you want. Many websites offer this service.

 

Don’t forget, we have national medical insurance to cover us, so travel insurance probably isn’t necessary if you’re just traveling around the country.

Tips to Help You Save on Insurance

Here are some quick tips to help you save money when purchasing insurance.

How You Pay Matters

Paying annually for a policy usually offers a considerable discount than paying monthly or weekly. Even though it’s a significant initial outlay, it’s worth it in the long-run.

Tax Deductions

Depending on your situation, some insurance policies can be expensed as a tax deduction. According to Faris CPA, you are best to seek professional help to understand exactly what deductions you can claim.

Shop Around

Don’t buy the first policy that you come across. Compare quotes, take out any extras that you don’t need, and buy from reputable companies. It’s not always smart to purchase a super-discounted policy from a company you’ve never heard of. Will they still be around to cover any claims?

Be Healthy

People with healthy lifestyles get cheaper policies. People who don’t smoke, and exercise regularly will benefit from a better monthly charge than those who lead a more sedentary life.

Make the Right Choice

Once you’ve decided which insurance coverage you need, do your research, shop around, and choose the right policy for you. Don’t get caught up on false promises; cover only what you need.

David Jackson

David is a personal finance expert, a professional male model, and an entertainment writer.