Doing Insurance the Right Way

When you first get married or are expecting a child is often when you start to think about insurance. Youth has a way of making you think you are invincible, but mortgages, children, new cars and stuff start to veer you toward being responsible. However, instead of blowing your monthly budget on premiums, you should start with a beginners guide to insurance. You want coverage, but it has to be affordable based on your needs and budget.

Sure, it sounds cool to be insured for a few million bucks or more. You might think that level of life insurance would be helpful if something happens to you. After all, if you had to go, you would want your family taken care of. However, you should be concerned with your mortgage payment, college tuition for your children and other things based on your lost income, not making your family rich. This keeps you premiums affordable. One of the problems is that insurance payments are one of the first things to go when the budget gets tight.

If expenses grow and your budget is lean, you will cut back on your car insurance and maybe even drop renter’s or life insurance. You should establish coverage that is affordable to you even when your budget is strained. This is the smart way to be insured. Sure, the next tier of coverage may only be five bucks more, but where do you draw the line? You have to be smart about insurance. Get the coverage you actually need, and do not look at insurance like it is some kind of macabre lottery that will pay off if something bad happens. You just want to be protected for the weather, life and other disasters that are more likely to happen in your area. You do not want to have too little coverage, but you don’t want too much either.

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