When you’re being sold any form of insurance policy you’re told that it’s all about paying a little price to protect something valuable you don’t want to lose. Or if you lose it, have some cushion to reduce the impact of such loss — That’s what it should be. But we know better…
It’s really all about managing risks and staying profitable once the insurance executives meet in their board meetings.
Why should you care? Because this affects you directly. To an insurance company, you’re a number (I don’t mean to say they don’t take care of their policyholders) that’s assigned to a group based on how risky or otherwise you are to them. Have you heard of terms life “standard” and “preferred”? They mean something — The level of risk those profiles present to an insurer.
There is a science that is used to ensure that the premiums you pay always exceeds what the insurer spends. For an insurance company to be able to provide coverage it has to be able to pay its own bills and turn some profits.
Enough about insurance carriers. You, the insured, should also approach your policies this way…
Is the quality of coverage I’m getting worthy of the premiums I pay?
Do I really need this particular level of coverage?
Are my cumulative discounts comparable to the sacrifices I make to get them?
Can I get a better deal somewhere else?
Remember, it’s all about managing your personal risks but you have to do it profitably.
Here are things to do right away…
Review all your policies. Are they adequate? Have you overgrown some coverage types? Are there other more cost-effective options?
Get and compare quotes from a wide array of insurers. Believe it or NOT, you will almost always find an insurer who will save you up to a hundred dollars if you take out some minutes every 6 months to do this.