Financial Planning -> Save Money -> Insurance costs
Lower your insurance costs
Shop around for any type of insurance, because prices vary.
You may be able to get group insurance through an organization to which you belong.
Stop smoking to save money on life insurance and/or house insurance.
a. Life insurance
You will need life insurance if you have dependants. You have a choice between 2 different kinds of life insurance - whole life insurance and term life insurance. Whole life insurance is a life insurance policy combined with a savings program. It is expensive, and not a good investment. Term life insurance is just a life insurance policy. You are far better off buying term life insurance and doing the investing yourself. Once you are financially independent (see Free in 30!), you will no longer need life insurance. We always purchased term life insurance, and stopped buying it in our late 40's.
b. House insurance
You can lower your house insurance costs by increasing your deductible. If you do this you won't be insured for small claims. However, you don't want to make small claims. They are not worth all the paperwork and hassle, and your rates may increase or your insurance may be cancelled. Always read your insurance policy and know what you are and are not covered for - yes, we know it's very tedious to read!
House insurance providers may provide discounts for
c. Car insurance
You can lower your auto insurance costs by increasing your deductible. You may have to pay the deductible in some circumstances where you are not at fault, such as a hit and run, vandalism, cracked windshield, etc. If you have a high deductible and lend your vehicle to anyone, you have to let them know ahead of time if you would expect them to pay the deductible if they have an accident.
Once you're retired, you can change your insurance because you will no longer need "to and from work" insurance. Once you're 65, seniors' discounts are usually available.
Tip: Lower your insurance costs - shop around.
Revised: September 19, 2017
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