Time to Renew Your Insurance Needs

Fall is a time of renewal, back to school and cleaning house for the winter. We start to stock our pantries with canned goods and get out the warm weather clothing. This is also a good time to take a second look at your insurance needs. Medicare Drug Prescription Plans are now offering open enrollment so that people can add to or change their insurance needs. It is a good time to take a look at the overall coverage and cost of all your insurance needs.

Life Insurance is something most young people do not own or even want to think about, but not taking advantage of opening a policy at a young age can cost you a lot of money later, since long-term policies determine their rates by the age during which you enrolled. If you are thinking of investing in a cash-value life insurance policy, the best time to start is when you have many years to pay into the program, so that it has a nice face value when you reach the age where you might want to "borrow" against it. With so few people actually saving up for retirement and relying solely on Social Security, it is a good idea to have even a small term policy in place to at least cover the cost of any outstanding bills and funeral costs if and when they become necessary.

Health insurance is a personal decision and the costs can range vastly. If you are on a limited income, bear in mind that Medicaid (programs for the poor and elderly) as well as other government programs would probably cover whatever catastrophic hospital costs you may have anyway, so long as you are eligible. Most reputable Health Insurance dealers will be upfront with you about what Medicare, Medicaid and other state programs would pay if you are eligible by age, income or health condition. The time to buy Health Insurance is not after going in and out of the hospital and doctors' office repeatedly. Don't wait until disaster strikes.

Car Insurance is an absolute necessity for anyone who owns and drives a car - no matter what kind of car. You can save money by eliminating any unnecessary expenditures, but carrying the uninsured motorist provisions are a must. If you do not EVER carry passengers, remove the passenger coverage. If your car is an old beater and worth nothing, take off the collision for your own vehicle. Take out a small minimum balance credit card (unused) and carry that in your glovebox as a hedge against any deductible and then raise the deductible on your insurance coverage. You pay dearly over several months for carring a policy with little or no deductible. Don't forget to take advantage of AAA, AARP or even your credit card's Motorist Plan which helps defray the cost of auto related problems like towing, running out of gas, or locking the keys in the car. Some plans even cover bail or overnight travel because you are stuck somewhere.

Your home is your castle and should be your highest priority regarding insurance. This applies whether you take out mortgage insurance or renter's insurance. A basic policy can cover the value of your things should a fire or burglary occur, but be sure to ask if that is REPLACEMENT value. If you are a renter, your landlord will be most grateful to know the interior of the building and its contents are covered as well as where you are going to stay (and how it will be paid for) is also covered if disaster strikes. Also be sure that anything you have in storage is covered as well. Extra provisions can and should be added, if necessary, for flooding, high-end electronics, computers, boats, toys, aggressive dogs and other personal injury matters (like office or childcare in your home), as well as expensive art and jewelry.

The insurance industry has changed dramatically. Credit card or Credit Life insurance (to cover an outstanding balance) is a good idea if you think you might become ill, disabled or out of work and unable to pay any large outstanding bill like a car payment. You probably do not need the kind of insurance which pays in the event of fraud since most state laws exempt you IF YOU REPORT THE CARD LOST OR STOLEN RIGHT AWAY. Remember, most companies do not charge for this service if you carry a zero outstanding balance on your cards to begin with. Some banks even offer a complimentary minimum life insurance (accidental death and dismemberment policy) with your Debit card or bank account free of charge, which you can increase to a higher payout for a small deduction from your account if that is what you desire.

Insurance coverage is absolutely essential today with so many people (not you of course) not carrying coverage putting the burden squarely where it belongs on your own shoulders.