What's the deal with insurance. Everywhere you go you see the Gecko, the hands and lets not forget the good nei-"bear". And everyone of them are out there to serve you better, right? It is however, important for you to have a good idea of what you are buying in order to become a savvier consumer. Here are five area's that you need insurance.
1. Auto: Get high limits of liability - it's a great buy. Save on premium by increasing your deductible.
2. Homeowners: Be sure to get replacement cost coverage for you dwelling and your stuff. Be sure your home is insured for what it will cost to replace. If you have an older home - market value and new construction prices will usually not be the same.
3. Life: Buy 10 times your income in 10, 15, 20, 25 or 30 year level term insurance. Depending on how long you have until retirement. DO NOT BUY PERMANENT INSURANCE!!! You are throwing money away with that crap.
4. Disability: Buy disability from work it's about 75% cheaper than what you can buy on the open market.
5. Health: Also get through work or look into high deductible health insurance with an HSA. Only do the high deductible if you have your deductible in an emergency fund.
Insurance is primarily a commodity. The extra premium is for service. How much do you value service? I'd rather keep my money.
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