Are You Over Or Underpaying for Insurance?
by Tim Manni
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.
