Ten Things to Consider When Purchasing Insurance
1. Try to avoid getting the most basic coverage. You will likely end up having to spend significantly more if/when an accident occurs.
2. Shop around – the money it could save you is worth the minor inconvenience of comparing costs.
3. Don’t buy unnecessary policies.
4. Don’t underinsure your home. Reconstruction costs could end up being far more expensive than the fair market value of your home.
5. Don’t discount the value of non-monetary income. Consider hidden expenses that you might not consider such as a stay-at-home mom eliminating the cost of daycare – that expense should be calculated into her life insurance policy in case something happens to her husband.
6. Update your coverage. Be sure that you tweak your policy according to family additions, or other similar life changes
7. Know your policy.
8. Consider seriously whether you want to forego disability insurance. One in three Americans will be disabled for more than 90 days at some point between 35 and 65.
9. Provide accurate information when applying for insurance. If untruths are discovered after your death, your insurance policy could be voided.
10. Insurance policies may not be the best thing to cut during tough economic times. Murphy’s law indicates that something bad is more likely to happen as soon as you drop the insurance.
See Staff Writers, The 10 Biggest Insurance Mistakes Americans Make, InsuranceQuotes, Mar. 27, 2012.