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April 22nd, 2009

Are You Over Or Underpaying for Insurance?

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We love to share ways that our readers (and we) can save some money. One of those ways, according to financial experts Ken and Daria Dolan, is to review your various insurance policies in order to make sure you are not paying for coverage you don’t need. Since home, life, and car insurance policies are increasing now by about 3-4%, consumers can save hundreds of dollars without ever compromising their coverage.

However, the Dolans say there are two specific policies that you can eliminate which could wind up saving you big:

Credit Card Life Insurance: “Basically you’re paying premiums so that your card will be paid off when you die. Chances are your balance on the card at your death will never be as high as the amount of premiums you pay out.”

Mortgage Life Insurance: “If something should happen to you, the cash proceeds of your term policy can be invested and your spouse can make mortgage payments out of those proceeds. The tax deduction for the mortgage interest remains intact, and you earn interest on your investment instead of letting the bank earn the interest.”

On the contrary, there are certain policies you should never go without. For some (and it depends mainly on where you live), flood insurance is a coverage you may wish to invest in. Spring storms are just a precursor to the hurricane season which begins on June 1. Since flood insurance policies take 30 days to take effect, there’s little time to waste.

Floods can take a devastating toll on perhaps the most expensive investment you’ll ever make — your home. For more information on flood insurance, and to estimate how much a flood could cost you — inch by inch — be sure to visit www.FloodSmart.gov. Coverage for flooding, even hail or wind damage, may not be covered under your standard homeowner’s insurance.

Remember, always review your policies to determine whether you’re either overpaying or underpaying for the insurance coverage you (and your family) need.

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One Response to “Are You Over Or Underpaying for Insurance?”

  1. jeanie jerome Says: June 15th, 2009 at 5:49 am

    It’s really nice to take time and see how our insurance are faring. Sometimes, we are too busy that we fail to take notice of our situation. It’s really ideal if at some point, we take a seat and see our financial conditions.

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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