Eliminate Your Expenses And Live A Debt Free Life

Chapter 1: Insurance

As much as possible, if it may be done, you must seize each opportunity for you to save on insurance.
Here are a few tips you may follow.


Security


Your home insurance:


If you consider it, you may actually save up to several hundred dollars if you purchase insurance from a low-price but licensed insurer. Compare prices of the insurance departments in your state and get the lowest price but most practical company. Negotiate a lower selling price with a broker who works for you and not as the mediator to the seller. There might be a conflict of interest if there are too many individuals involved. So negotiate with just the broker.


Deductibles are the sum of money you have to pay towards a loss before your insurance company begins to pay a claim, according to the terms of your policy. The higher your deductible, the more cash you may save on your premiums. Today, most insurance companies advocate a deductible of at least $500.


If you are able to afford to raise your deductible to $1,000, you might save as much as twenty-five percent.


Remember, if you live in a disaster-prone area, your insurance might have a separate deductible for particular kinds of damage. If you live near the coast in the East, you might have a separate windstorm deductible; if you live in a state vulnerable to hail storms, you might have a separate deductible for hail; and if you live in an earthquake-prone place, your earthquake policy has a deductible.


A few companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you purchase two or more policies from them. But make sure this combined price is lower than purchasing the different coverage from different companies. Companies offer many types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For instance, since retired individuals stay at home more than working individuals they're less likely to be burglarized and might spot fires sooner, too.


Retired individuals likewise have more time for maintaining their homes. If you're at least fifty-five years old and retired, you might qualify for a discount of up to 10 percent at a few companies. Some employers and professional associations administer group insurance programs that might offer a better deal than you are able to get elsewhere.


Your life insurance:


If you prefer just insurance protection, and not a savings and investment life policy, you are able to just purchase term life insurance. If you'd like to buy whole life insurance, then hold on to one up to 15 years. If you cancel these policies after only 2 years of having them in your name, it will mean double the insurance costs. Check the public library about life insurance in your state and get one that suits your personal savings.


"Guaranteed issue" life insurance policies demand no medical exam but might ask a few basic medical questions. Guaranteed issue policies are riskier for the insurer and are, consequently, more expensive than fully underwritten policies.


Guaranteed policies are commonly purchased by individuals who have difficulty obtaining life insurance due to medical issues. If you've some medical issues, you're still likely to get better life insurance rates by opting for an underwritten policy, for which you take a medical examination.


The high premiums, blended with a low face amount for the death benefit, may make guaranteed issue life insurance a less desirable choice. With a few of these policies, you may wind up paying more in premiums after only a couple of years than your beneficiaries may ever receive from the death benefit.


Nailing down a formula for how much life insurance is an imprecise science. You ought to ask yourself how much cash it will take to maintain your family's lifestyle if you were to die.


Review your policy whenever you have a major life change.


Authorities propose that you do an analysis every year or at least once every 3 years. Also, you ought to always review your policy whenever you've a major life change. For instance, if you have a new baby, you have to recalculate college education needs and childcare costs. If you own a house, a mortgage is likely your biggest financial burden. Because your mortgage balance diminishes with every payment, it's crucial to include those revised figures in your calculations.

(Next Lesson) Chapter 2: Car Loans
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