The Simple Dollar’s Education in Insurance

Up until now, I’ve only occasionally dealt with a major component of monthly finance: your insurance. If you’ve got a family, like me, you have to know how your insurance works. For that matter, if you’re financially stable or you’ve got valuable property, grasping your coverage is just as necessary.

When something unexpected happens, insurance is the one precaution that really makes a difference. You can’t be casual about such a responsibility

And while you can understand exactly what you’re protected against, actually managing your premiums can be a whole other story. As anyone in charge of the bills can tell you, juggling multiple premiums every month gets pricy fast. Things will only get worse if you don’t know how to compare plans and deductibles, to identify loopholes, or even how to dispute a claim.

When something unexpected happens, insurance is the one precaution that really makes a difference. You can’t be casual about such a responsibility.

While I would never claim to be an insurance expert, my wife and I insist on regularly reviewing our coverage and monthly premiums. If you don’t know what your policy actually protects you against (and why you want that protection), you need to make a point of getting the facts straight. When you blindly pay for extensive coverage and add-ons the insurer tells you are “necessary” or “highly recommended,” you are wasting money.

In my case, as family circumstances changed over the years, we’ve made sure coverage stays in step with our lifestyle and our property. And looking back on these experiences, I know I have more I’d like to share. You can go back to my September entry on buying term life or my recent list of life insurance lessons to get an idea of what I mean.

When you blindly pay for extensive coverage and add-ons the insurer tells you are “necessary” or “highly recommended,” you are wasting money.

Along with my own take, I’ve recruited insurance insiders to contribute to a new, separate section of the site. They’ve each put together a sort of “Insurance 101” guide for four areas of insurance: home, health, car, and life. Each writer is objective and highly qualified. People who actually have something worthwhile to contribute. Each guide goes into great detail on the basic terms, the right questions to ask when insurance shopping, and tips on how to avoid needless expenses and cons.

Look for a post from me that explores the new pages, including an introduction to the insiders and their guides, as well as my own takeaways on managing the trickier aspects of insurance.

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