The biggest question you need to ask is if you need the insurance to start with, is it for a catastrophe or something that can easily be covered in an emergency account. Will that event cause turmoil in your life if you do not have coverage, if yes you likely need insurance on that issue. You also need to know how much coverage you need to have on that issue, for life insurance you should have enough to cover the breadwinners income until that income would no longer be needed, such as kids growing up. You should also look at the monthly premiums and see if you can raise the deductible to a point where the monthly premiums are less, the higher the deductible the better usually, you can cover the delectable out of you emergency account.
Do you really need that insurance. For car insurance, is your car worth more than what the insurance would actually pay if it got damaged. You also need to consider the odds of you ever using that type of insurance.
Do I need this insurance policy to avoid a catastrophe? Buy insurance to deal with catastrophe’s, not small inconveniences. Most insurance policies are not needed. They are simply created to make the insurance companies money based on the low probability of you actually filing and receiving money on a claim.
If yes, how can I reduce the yearly premiums? High deductibles and forcing insurance companies to compete for you business can reduce yearly premiums dramatically.
If no, do I have enough in savings to cover small problems in life? Having enough to cover the highest deductible on any insurance policy will reduce your stress when that time comes.
The biggest question you need to ask is if you need the insurance to start with, is it for a catastrophe or something that can easily be covered in an emergency account. Will that event cause turmoil in your life if you do not have coverage, if yes you likely need insurance on that issue. You also need to know how much coverage you need to have on that issue, for life insurance you should have enough to cover the breadwinners income until that income would no longer be needed, such as kids growing up. You should also look at the monthly premiums and see if you can raise the deductible to a point where the monthly premiums are less, the higher the deductible the better usually, you can cover the delectable out of you emergency account.
Do you really need that insurance. For car insurance, is your car worth more than what the insurance would actually pay if it got damaged. You also need to consider the odds of you ever using that type of insurance.
Well said, gentlemen. Let’s review.
Do I need this insurance policy to avoid a catastrophe? Buy insurance to deal with catastrophe’s, not small inconveniences. Most insurance policies are not needed. They are simply created to make the insurance companies money based on the low probability of you actually filing and receiving money on a claim.
If yes, how can I reduce the yearly premiums? High deductibles and forcing insurance companies to compete for you business can reduce yearly premiums dramatically.
If no, do I have enough in savings to cover small problems in life? Having enough to cover the highest deductible on any insurance policy will reduce your stress when that time comes.