While many people are underinsured, some of us are carrying more insurance than we need. We may have too much or the wrong kind. There are times when dropping your insurance coverage makes sense. Making unnecessary premium payments is wasteful. Always seek to make the best use of your financial resources.
 
Consider these circumstances:

1. Term life insurance. This type of policy was only intended to cover you for a specified period. It might be until your youngest graduates from college or until your house is paid off.

 

• If your situation has changed and you no longer need the policy, letting go of it might be a smart move. Apply the monthly premium to something else.
  
  

1. Over-insured. Do you carry too much insurance? It happens, especially if you ever dealt with an unscrupulous insurance salesperson. It’s important to review your level of coverage each year with a professional you trust. You might be able drop some of your coverage.
   
   
2. Insurance riders. Do you have additional insurance coverage for unusual or expensive items? These items commonly include jewelry, artwork, firearms, and anything unusual. Do you still own the items? If not, drop the policy.
   
   
3. Flight insurance. If you die in a commercial airline plane crash, you should be covered by your own life insurance. Flight insurance is an unnecessary expense.
   
   
4. Private mortgage insurance. This coverage is often required if your down payment is less than 20%. You might think that the coverage is automatically dropped after you’ve paid back enough to cover the 20% requirement. In most cases, you must make a request in writing.

 

• Do you know when you’ll be eligible to cancel your PMI? Mark the date on your calendar.

 

1. Collision automobile insurance. If you’re still paying for your car, your lender requires this coverage. It repairs your car, even if you’re at fault in an accident. You can consider dropping this coverage after your loan has been paid in full. However, it’s often better to keep the coverage.

 

• Determine how much your payment will change and how much the vehicle is worth. Many experts advise keeping your coverage if the automobile is worth more than $5,000. If your car is worth less than this, the payments probably don’t justify the amount of coverage you’re receiving.
  
  

1. Rental car insurance. Your auto insurance carrier might have sold you on the idea of paying for coverage that provides a rental car in case your car needs repairs. How often is this likely to happen?
   
   
2. Insurance for rental car damages. Your existing car insurance policy probably covers any damage your rental car might suffer. You probably don’t need to pay extra for the coverage offered by the rental company.
   
   
3. Comprehensive automobile insurance. Comprehensive insurance covers your car for non-accident related issues. This includes storm damage, theft, fire, and vandalism. If you’re still paying for your car, you’re probably required to have comprehensive coverage.

 

• If the likely repairs are worth more than the car is worth, do some investigation. Are the repairs going to be more than the vehicle is worth? You might be better off without this coverage.

 
In a world with seemingly unlimited insurance opportunities, there are times when it makes sense to drop certain policies and use the money for other purposes. Sometimes dropping your insurance is the financially responsible thing to do. Determine if all your insurance policies make sense for your situation and adjust accordingly.

, and even offer Living benefits
Part of your financial plan should include protecting your assets, including your possessions, as well as your income, loved ones and health-related financial concerns. Insurance isn't very exciting, and it can certainly be expensive. But when you need it, you’ll be glad you have it. Unfortunately, there’s no single policy that will give you all the coverage you need.
 
Take inventory of your insurance coverage. Do you have these 5 important policies?
 
Life Insurance 
Life insurance protects those people who depend on you financially if you die unexpectedly. Consider the hardships on your loved ones if you should happen to die prematurely, and some offer living benefits paying you when you overcome the illness or accident. 
 
How do you determine how much life insurance you should get?
 
Consider these matters:

• Replacing your income. How much and for how long?
• Last illness expenses
• Funeral expenses
• Would you like to pay off certain debts, like your mortgage, so you don’t leave those behind for your loved ones?

 
No one likes to think about these things. However, if you deal with it now, it's something your family doesn't have to deal with later.


Health Insurance
 
Health insurance is expensive, but health care is expensive too, really expensive. A simple trip to the doctor can easily be several hundred dollars. A routine surgery that only results in being in the hospital for a couple of hours can be over $10,000.
 
Health insurance costs are a burden, but the cost of a genuine medical issue can be catastrophic.
 
If this isn't something you can get through your employer, be prepared to do some legwork to find a policy that’s right for you.
 
Long-Term Disability Insurance
 
This insurance replaces a portion of your lost income if you become unable to work. The cost depends on the amount of income that you wish to replace, your age, health, the length, and the limits of coverage. Policies will also differ regarding what they consider to be a “disability.”
 
This coverage can also be quite expensive. Hopefully, you can also get this through your employer. If not, sit down with your life or health insurance agent to go over the details of this important insurance.
 
Homeowners Insurance
 
If you still owe money on your home, your lender requires homeowners insurance. If you don't owe money on your home, you should still carry this type of financial protection. Consider how many thousands of dollars your house and the contents would cost to replace.
 
The price of homeowners insurance is quite small compared to the amount of coverage you're getting.
 
Besides covering the structure of the house and its contents, some policies will even cover putting you up in a hotel until your house is repaired. Any injuries that occur to friends and strangers are also covered under your house policy.
 
Consider what you need; there are a lot of options for benefits, limits, and price.
 
Automobile Insurance
 
Nearly all states require automobile insurance to varying degrees (New Hampshire is the exception). Everyone should have coverage, even if you drive a 1975 Chevy Nova that has been paid off for years. Even in that case, you’re still financially responsible for the damage you cause to other vehicles and property.

Without automobile insurance, you might face a lawsuit that could potentially cost you everything you own. Ensure you have all the coverage you need, not only for your own vehicle, but to cover your liability as well.


Conclusion
 
Insurance isn't exciting or sexy, but it's a necessity. When looking at new policies, shop around because prices and coverage can differ widely from one company to the next.
 
One tip to save some money: Get a policy with a higher deductible. The more you have to pay before the insurance kicks-in, the less that insurance coverage will cost you.
 
Do your homework and find an insurance professional you can trust. Don't just focus on what insurance costs you; think of what it will cost you if you don't have it.

 
Is it true that a good life insurance agent is hard to find? The vast majority of people living in the United States will at some point face the specter of purchasing life insurance. And when it comes to buying something so important to the lives and protection of your family members, you definitely need a good life insurance agent who can help.
 
But how do you know when you find a life insurance agent that will inform you about all the products available and honestly advise you regarding how much life insurance you need?
 
Consider the following tips to find a good life insurance agent:

1. Talk to your friends, neighbors and family members about their agents. Word of mouth is still one of the best methods for finding a quality professional. When gathering information about agents from your friends and family, inquire whether they have any concerns regarding their agents' ability to assist you.
   
   
2. Consider professionalism of the staff. When you first call an agent, you'll probably speak to the agent's office staff.
   
   

• Are you pleased with how the staff member responded to your questions? Did he/she seem professional and take care of your requests in a timely way?
  
  
• A good agent will have competent office staff.
  
  

1. Contact 3 to 5 insurance agents. This way, you can do some comparisons among the agents to narrow your focus to the agent you prefer to work with. Plus, you'll want to take the opportunity to find out about their credentials and work histories, which will help you to rule in or out specific agents.
   
   

• Pay special attention to each agent's diligence in responding to your questions.
  
  

1. Determine how much experience an insurance agent has. Inquire about how long the agent has been selling insurance. Ask whether they've worked for other insurance companies.
   
   

• Gather as much information about the agent's work history as possible. You might even be able to obtain a copy of an insurance agent's resume to determine his years of experience and education related to the life insurance industry.
  
  

1. Check out an agent's credentials. The CLU, Chartered Life Underwriter, designation shows an agent has in-depth training on determining an individual's life insurance needs. It's a good idea to work with agents who have this CLU designation, if possible.
   
   
2. Focus on obtaining an independent insurance agent. This type of agent can sell a variety of insurance products from numerous carriers.

• To clarify, if you call a specific insurance company and work with one of their agents, then the only type of policy that agent can sell is one of that particular company's.
  
  

• However, with an independent agent, you'll be offered a wider selection of insurance products with a better likelihood of finding one to fit your specific needs.
  
  

1. Trust your gut when it comes to meeting agents. If an agent says right off the bat he has the "right" policy for you, be leery.
   
   

• A good agent will instead listen to your needs and answer your questions. He'll present the possibilities to you. The final decisions will be yours to make. Although a good agent will advise you, he won't insist that you get any one particular product.
  
  

If you're looking for a good insurance agent, be ready and willing to expend some time and energy. However, if you make some inquiries, meet with a few agents who have quality credentials, and trust your instincts, you'll discover an excellent insurance agent to help you find the perfect life insurance to protect your family's future.

 
If you own a home, homeowner's insurance is a necessity. Although it's not required by law, if you borrow money to buy a home, your lender will almost certainly require that you have homeowner's insurance to help them protect their investment.
 
Even if your house is completely paid off, it's still a good idea to carry homeowner's insurance to help protect your investment.
 
In either case, there are steps you can take to avoid overpaying for your insurance coverage.
 
Check out these tips to help ensure you’re paying the lowest possible rates:

1. Enhance your home security. A good home security system can help you save money on your homeowner's insurance.
   
   
   • One of the ways insurance companies determine your rates is to assess the amount of risk they take when they issue a policy. If you lower your perceived risk, you can also reduce your rates.
     
     
   • Statistics show that homes with a security system are burglarized less often than homes without them. The insurance companies know this and they’ll offer you lower rates if you have a good security system.

 

1. Get a higher deductible. When you have a claim, your deductible determines how much of the loss you need to cover yourself. The more you agree to cover, the lower your insurance premiums are.