Insurance

One key to having a good financial plan is having appropriate insurance. Having insurance is like building a wall around your finances so that when disaster strikes, it hits the wall instead of your wallet. To be well-insured you should carry auto, home (rental), health, disability, and life insurance - click below to learn more about each and get competitive quotes the easy way. 

The average person saves $500 to $700 per year on auto and home insurance just by getting new quotes from two name-brand companies and one independent insurance company.

A fast and easy way to get quotes without having to spend all of your time on the phone is to use online quote aggregators. You only have to enter your information once and multiple quotes come to you via email or phone.  Get started toward saving by visiting one of the sites below.

Auto Insurance

 
 

Home Insurance

When was the last time you obtained quotes for your home and auto insurance?  It is very, very important to carry both home and auto insurance. However, that does not mean that you should pay the highest dollar amount possible! Here are some tips to lower some of these costs and add some extra green to your budget.

Homeowners Insurance Tips:

  • If you have auto insurance or some other insurance, ask for a “bundle” discount.

  • Consider increasing the deductible to reduce your premium costs.  If you are managing your money well and have built your emergency fund to at least three months of expenses (Rung #5), you may consider increasing your deductible.  This can result in a substantially lower insurance premium.

    • Example: If you increase your deductible from $500 to $1000 and the premium drops to $400 a year, this is probably a no-brainer.  The premium is the only cost guaranteed to happen, and an event requiring the use of the insurance is not. If you are able to make it fourteen months without a claim, you will come out ahead financially.  Even if a claim happens two years down the road, you will pay the $500 more in deductible, but you will have saved $800 in premiums (two years at $400 per year in reduced premiums due to increasing the deductible by $500).  

  • Shop around for the best rates every two years.

  • Obtain a minimum of three quotes – one of them being from an independent insurance agency.

Health & Disability Insurance

Nearly half of all bankruptcies are a result of uninsured medical expenses, and as a worker you are three to four times more likely to be disabled for 60 to 90 days than you are to die before the age of 65.

You can not afford to have major medical and disability insurance or to let your insurance lapse. We like eHealth Insurance because you can compare insurance plans side-by-side and find a great plan that meets your needs.

Life Insurance

Term life insurance is an excellent way to help protect your family from failing financially, should something happen to one or both parents. We recommend ten times one's annual take-home pay. For example, if your annual take-home is $30,000, then $300,000 of term life insurance coverage would be appropriate. If one spouse does not produce an income, we recommend around $250,000 in coverage. 

Acquiring term life insurance usually requires the following steps:

  1. Go to selectquote.com. 

  2. Find term life insurance that fits your needs.

  3. Request and fill out an application.

  4. A nurse will contact you to set up an appropriate time for a health analysis (usually involves a blood test and a basic physical).

  5. You are accepted or denied. If accepted, you will be provided the rate and the policy will go into effect when payment is made.

NOTE: Smoking and weight issues do not necessarily mean that you can not obtain life insurance, but it usually results in higher premiums due to increased health risks.