Insurance: the expense that saves you money

“Do I really need insurance?”

Absolutely, yes. While most people do not require every type of insurance policy available, everyone needs to protect themselves physically and financially.

Saving money by spending money

Every time that bill for the premium comes due, it can feel like a big financial blow. Deductibles and copays leave people feeling like they are being nickel and dimed by the company.

The less you use your policy, the greater the expense of it may seem. However, you must always consider the potential cost of not having insurance. A single hospital stay can make decades of premiums, deductibles and copays more than worth it.

Being smart about your insurance needs

It is possible to save money by opting for lower cost policies or eliminating policies you do not truly need. However, you need to weigh the pros and cons of accepting reduced coverage for a reduced cost. Here are some things to keep in mind based on type of insurance:

• Health insurance: Everyone needs a health insurance policy. If you are young and healthy, it may make financial sense to opt for lower premiums and higher deductibles. However, anyone who is older or has health concerns will likely benefit from a higher premium and lower deductible.
• Car insurance: If you own a vehicle, you must have some form of car insurance as required by law. Liability insurance is the bare minimum, but to protect yourself financially, you should carry additional coverage. In most cases, collision, fire and theft coverage are vital.
• Homeowners insurance: Homeowners policies protect the land, structure and contents of your home. They also include liability coverage, protecting you should someone be harmed on your property and choose to sue. Even if you have the financial resources to rebuild your home and replace the vital items inside, the liability coverage is especially important.
• Life insurance: If you have people who depend on your income to survive, and/or you have significant debt, having a life insurance policy is essential. You can save money by taking out only the level of coverage you need.

You might hate to pay the premiums, but ultimately these policies keep you safe physically and financially. To learn about ways to save on your coverage, speak to your insurance broker.