|Insurance Buying Tips #1: Shop smart|
|When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.|
|Insurance Buying Tips #2: Look for discounts|
|Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.|
|Insurance Buying Tips #3: Fill in the gaps|
|An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.|
'Retirement' is a word that is on the distant horizon for many people in their 20s and 30s. When one is young, there is no time to think of such things as old age and what one's life will be like.
The retirement years of a person's life must be full of peace, freedom from financial worries and ample time to pursue one's interests. However, the reality is the opposite for millions of elders in society: when they retire, they find that they do not have enough savings. They must depend on their monthly pension for subsistence. In many cases, they are forced to depend on their children for shelter and survival.
This stems from a lack of foresight when one is young. Though '60 years' may seem like a far-off number to a 30-year-old person, time goes by so quickly that one is a senior citizen before one realises it. It is irresponsible to put yourself and your spouse in a financially vulnerable position at an age when you cannot earn an income. Planning and saving for your golden years when you are still young will give you the kind of retirement you have always dreamed about.
Saving from the word 'go'
The key to retirement planning is constant saving. When one is single and working, a sizeable portion of one's salary may go towards saving for the future. This practice of saving a part of the salary should become a lifelong habit. It is not to be interrupted for any reason; the savings thus accumulated are not to be dipped into for other expenses.
|Insurance Buying Tips #4: Purchase life insurance—you aren’t too young|
|Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.|
|Insurance Buying Tips #5: Talk to an independent agent|
|An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.|
|Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living|
|You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.|
If your income is sufficiently large, you can invest in property and lease out the space. That way, you have a precious asset that gives you monthly income that appreciates over time. It is also a good idea to invest in saving schemes and life insurance policies that will accrue benefits for the time you are retired.
Whenever you have surplus funds (from a bonus, sale of property, etc) ensure that you lock the money in a Fixed Deposit scheme or PPF. This will take away the temptation to spend the money that you are setting aside for your retirement.
A mistake you are bound to make is to dip into your retirement planning fund to finance your children's education or marriage. A better option is to take a loan for these purposes – they can be paid off by affordable EMIs when you are still working.
Investing in retirement pension plans is the most intelligent option of all. These are plans that offer one the flexibility of deciding their own retirement age. The age of entry for the plan is normally 40 years, so if you decide that you want to retire at 50 years, the policy tenure will be 10 years. The retirement pension plan offers benefits on maturity; the policy holder gets back 101% the premiums paid plus the bonuses accrued. Paying the premiums thus goes towards creating a sizeable corpus for the retirement years.
We all work hard so that we can have tranquillity in the autumn of our lives. Retirement planning at a young age helps to achieve this objective, with complete freedom from financial uncertainties.
|Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover|
|Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.|
|Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier|
|here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.|
|Insurance Buying Tips #9: Review your insurance needs on a yearly basis|
|As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.|