Insuring Your Future

While no one questions the value of insurance coverage in a strong financial portfolio, it's important to determine just what you do and do not need to protect. Many people end up "insurance poor" by choosing excessive coverage out of fear of losing everything they've spent a lifetime acquiring. A thorough review of your coverage is essential every few years to determine where you can find some cost savings.

If your insurance premiums have gotten out of hand, there are some basic areas where you can cut costs and still maintain a reasonable level of protection. Choose the highest deductible you can comfortably afford to pay in the event of a claim. It may sound good to have a $100 deductible but you will pay for that luxury. If you can afford to cope with the possibility of paying $500 or even $1000 out of pocket in the event of a claim, you will enjoy significant savings in your premium each year.

Don't pay for insurance coverage where it's not needed. Life insurance is important to protect household income in the event of the death of the main bread winner. It is not necessary for minor aged children or retired people who have their retirement nest egg securely in place.

The same holds true with auto insurance. If your car is older and it's unlikely you would repair it if you were involved in an accident, why should you carry a high level of collision insurance? Review your coverage today.