April 17, 2014

Insurance is there to deal with catastrophes, not accidents. Low deductibles? High deductibles? Why?

2 thoughts on “April 17, 2014”

  1. Kat says:

    High deductibles, because that will reduce your yearly premium. Your emergency account will fund the high deductible, if needed.

  2. Mike Finley says:

    You are correct, Katherine. Let’s review.

    Insurance is there to deal with really bad things that cost a great deal of money. It should not be used to protect you from the small things in life. Handle those small things as Katherine stated, pay for them (and your deductibles) out of your emergency account. This also highlights why it is so important to have savings set aside for these type of incidents.

    Raise those deductibles as high as you can go. This will reduce your yearly premiums and then you can use that extra savings to pay down debt, fund the emergency account, or contribute to your retirement accounts. Does any of this sound complicated? I don’t think so. Focus on developing the right habits that will take you in the right direction financially. Your future self will thank you.

Leave a Reply

Your email address will not be published. Required fields are marked *

The Crazy Man in the Pink Wig