Don't Waste Money on Insurance

Many people start thinking about different types of insurance to protect their loved ones during this time of their lives.  At it's core, insurance is meant to protect others as much as oneself and it's a topic people tend to rush through, which can become costly over time.  Here are the three biggest mistakes having reviewed thousands of insurance policies throughout my career:

• Understanding your need
• People may unnecessarily insure themselves or loved ones given their situation.
• Being overly reliant on workplace plans and the coverage amount provided.
• Not conducting a needs analysis and exploring their situation to understand the dollar amount required.  This can result in over or under insuring for their particular circumstances.
• Believing a policy that may have been set up years ago is sufficient for current needs.
• There are different types of insurance that can cover a wide range of situation, which one fits?

• Choosing the wrong structure
• Some people view insurance as a single product and not solution.  A single policy may only serve a specific purpose.  It's important to understand how to layer different policies for the best long term benefit.
• The wrong type of insurance is selected which could cost a lot more than necessary from a needs basis.
• Overlooking a specific product that could address a possible personal health concern or others'.

• Selecting the right carrier/provider
• Many people have the tendency to select the most popular brand just to "get it over with".  This could obviously lead to overpaying if selecting the wrong company.
• Each carrier slightly differs in what is covered, so it's important to know WHY one option may be less costly than others.
• Different providers for different needs.  Companies may offer a better solution for one type of insurance versus another, so based on one's solution, it could involve one or more companies.

Although insurance may not be the most exciting part of one's personal finances, it can have a long term impact given the length of time someone may be committing to payments without realizing there is a gap or issue.  Simply put, work with a professional by setting it right the first time to avoid costly mistakes.  Click below to book a session to learn more!