The Skinny on Insurance
I wanted to discuss some miscellaneous insurance products. You will find that you have some hidden insurance costs that can be eliminated and put more money in your pocket for your debt reduction.
Insurance attached to purchases
There are insurances offered, at time of purchase, to cover service contracts that are supposed to cover repair costs for phones, appliances, automobiles, etc. First, aim to search your purchase and loan papers to find and cancel the unnecessary coverage you have. One life example I have is of my grandmother, who bought a washer from a major store, and paid for the warrantee for 20 years! She got her service calls "free", but paid for the washer 5 times over! Your second aim should be to habitually refuse buying high-priced gimmick insurance no matter the sales pitch.
Insurance attached to loans
There are a lot of names for this insurance: credit life, credit disability, mortgage life and charge guard. These extended warrantees are attractive because if the manufacture's warrantee expires, this extended warrantee covers your needs for repair. There are limitations, conditions and loopholes in the fine print. It is a potential rip-off. Often, service contracts are prepaid, so the dealer gets your money long before you need the service. You may end up paying 40% more on your automobile! The list of what is NOT covered is long. Check the fine print and see for yourself.
Cancel your extended warranty and get a refund. You can do this by placing your request in writing and include vital information such as the loan number and date purchased. Ask for the refund, or request that one or more payments be knocked off of the end of your loan, equal to the amount of the unused portion.
Flight, accidental death, student accident insurances
Do not waste your money on these offered policies. If you need life insurance, buy term life. It will pay regardless of how you die and dollar for dollar is a much better value.
Flight Insurance pays if you die in a plane crash. Over-priced specialty insurances are a waste of money. If you need life insurance, buy term, it will pay regardless of how you die and dollar for dollar is a much better value.
Free accidental death and dismemberment insurance usually will pay $1,000 or so if you die or are maimed in an accident. Sounds like you have nothing to lose, but by taking this coverage, you are subjecting yourself to endless sales pitches, telemarketing and direct mail to try to sell you increased limits of this worthless coverage.
Student accident policies offered through your child's elementary or secondary school usually runs $30 a year for school hour's coverage and around $150 for coverage around the clock. Specialty coverage like this only pays for certain accidents and is usually a secondary coverage, paying only what your regular health insurance does not. You cannot collect twice for the same malady, so what you are essentially insuring is part of your deductible, a big financial no-no.
Hospital indemnity
Hospital indemnity pays you a set amount per day-usually around $100 if you have to stay in the hospital. Premiums run a few hundred dollars a year. Adequate medical insurance should cover hospital expenses, so you won't need to pay for this as an extra expense.
I hope you will take the strategies for insurance that I have been sharing with you and use them together to create one comprehensive, low-cost insurance plan. A typical family of four can easily pay as much as $6,700 on the myriad of apparently logical insurance options available. By applying the strategies I have shared with you, my typical clients cut their insurance costs to $2,030, giving a savings o If you're like my average client, you could potentially save $4,610 which you could then redirect to your accelerator focus fund.
I strongly challenge you to now apply all of the insurance strategies I have shared with you. Obtain at least 10 quotes from 10 different insurance providers. Move your insurance coverage to whichever "A rated" company offers you the lowest premium. Although this can be a very time consuming process, the savings will be well worth the invested time.
Immediately apply the savings to your accelerator focus fund and power your way to debt and financial freedom!
[http://www.bradgillies.com]
Article Source: http://EzineArticles.com/expert/Brad_Gillies/1503883
