Reviewing Your Collection of Insurance Policies

It’s the end of the year, and one of the biggest mistakes that people make is that they assume all is well within every facet of their lives. They don’t like to question things just in case something isn’t as good as they think it is. It would be a lot wiser on your part to really make sure that you are taking care of every last corner of your life. Even the finances. Yes, we know that you probably pay your bills and make sure that there’s food in the house. However, what about the things that really matter? What about the insurance policies on your home? What about the insurance policy on your car? Even though we don’t like to think about it, insurance is really important, one of the top components of our financial blueprint. While it’s true that nobody likes the idea of paying all of that money to the insurance companies, the reality here is that we really like knowing that we have a safety net in case the worst happens. Yes, you have to pay for car insurance every month but when you get into an accident, chances are pretty good that you’re happy to have the coverage. Especially when it’s good coverage.

Now is the perfect time to take a little break from your normal schedule and make sure that all of your insurance plans are in proper order. Has your life changed and you need to increase your coverage? This is very important when it comes to something like life insurance. When you’ve had a birth in your family, you might want to take out a little more coverage. Since life insurance is a product that doesn’t end in more taxes, this is a great way to pass wealth to the next generation as well without having to wait for probate and other legal hold ups.

Your health insurance coverage also matters — if you aren’t using as many services as you once were in the past, it’s time to cut that down. Also, if you’ve improved your health significantly over the years, you might be overpaying for health insurance and not know it.

The fine print on all of your insurance policies is something that you should be looking into. It’s not just enough to make sure that you have insurance — you’re going to also need to make sure that you focus on how you would go about claiming your insurance benefits if you had to. Make sure that in the case of life insurance this is something that is easy for your surviving family to understand. They’re going to have to make sure that they take the steps to actually claim those benefits. Not knowing the right information could end up slowing them down during an already stressful and traumatic time.

No matter what type of insurance we’re talking about, this is a great time to comparison shop and really make sure that you’re paying the right amount for the services that matter to you. Why would you want to pay more insurance than what it’s worth in the long run? That just wouldn’t make much sense at all!

Don’t be afraid to ask questions and really make sure that you understand everything that’s going on. Now is the time to take action. Now is the time to make sure that you have a firm grasp on everything that you need to know, so that you don’t end up having to struggle due to bad decisions. What are you waiting for? Your future starts today!

Who Really Needs an Umbrella Insurance Policy, Anyway?

Insurance is a tricky subject. A lot of people think about the insurance policies that everyone else talks about, like home, auto, and life insurance. Yet you might be surprised at all of the other types of insurance products out there. For example, there is umbrella insurance. This is something that a lot more people can use than they think. Yet in order to understand why umbrella insurance is so critical, a little bit of background information is required.

You see, all insurance policies have limits. These limits are going to depend on your insurance carrier’s risk profile for you, but every policy has limits. For example, let’s say that you are taking out coverage on your home. That coverage might have a limit of $300,000 dollars. But if a child jumps over the fence of your home that has a swimming pool and they drown or get seriously injured, your three hundred thousand dollar policy is not going to cover much of anything — and you will have to pay the difference between what the policy covers and the extra that is owed. That’s a lot of money out of pocket.

That’s actually where umbrella insurance steps in. It will cover the excess damages owed that fall outside of your general insurance policies. In the past, this used to be insurance that only wealthy individuals needed to have, but that’s no longer the case now. You will need to make sure that you cover yourself appropriately if you have at least 200,000$ in assets. Quite frankly, that’s not hard to do if you own a home — you’re going to be risking your biggest asset right then and there.

So going about getting umbrella insurance is something that just about everyone should think about — even if they might not realize it. Don’t rely on age old sayings like “only rich people need umbrella insurance”. If you’re starting a small business with a storefront, you’re going to need umbrella insurance too. The last thing that anyone wants to deal with is realizing that they aren’t as well protected as they think, but hiding in the dark about it isn’t going to help matters either.

So the next step that you must do is a little bit of comparison shopping. You always want to make sure you’re paying the right price for umbrella insurance coverage. You don’t want to just find yourself getting something that you think is good, only to find that you could have saved a lot of money and still been properly protected.

This is also a time where reading the fine print is a good thing. You want to make sure that you have all of your ducks in a row, so to speak. No one likes to think that they’re protected, only to find out how lacking their protection really was because they just filed a claim that got denied. The most common reason for a claim being rejected is because the events were not actually covered under the policy the way the policyholder thought they would be.

As a reminder to business owners, umbrella insurance is actually something that’s absolutely tax deductible, so make sure that you save your receipts so that your tax preparer can add that to your expense statement. Why would you want to pass up a tax deduction if you didn’t have to?

Overall, now is definitely the time to start thinking about umbrella insurance — why not start today?