Frugal Living Advice on Insurance Selection

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Insurance will always cost a certain amount of money, and if you’re looking at multiple vendors and products like whole life or long term care insurance, they may seem pretty expensive at first glance. However, this is not one of those things you can afford to skimp on, either!

There is no denying that insurance is a large investment, and for those who have adopted a frugal lifestyle, this will probably be one of the most expensive purchases they make. Still, it’s an essential part of life (just like healthy food, clean water and proper shelter), since it helps to keep your assets safe and provides financial security too.

Simple Tips for Smart Insurance Shopping

You need to have insurance for the support it provides you and your loved ones, as well as its ability to safeguard any property and assets that you own. Luckily, there are a few ways to make the purchase burn a smaller hole in the pocket, so let’s consider how this can be done.

Here are four of the simplest ways to shop for insurance without blowing your budget:

Check All the Available Discounts

One of those things that sort of slips below the radar while shopping for insurance is the possibility of discounts offered by insurance providers. Now, we’re not talking about good deals on a policy alone, but related discounts and offers for other products or services.

For instance, when you’re buying car insurance, a number of insurance providers offer discounts on car parts that you might end up replacing at some time in the future. As part of the insurance purchase, you may also be entitled to discounts on components such as fire extinguishers, smoke detectors, anti-theft devices, air bags, etc.

Some insurance plans provide discounts for a wide range of other products or services, and whether it’s today or a few years down the line, you will save that much more money when you’re investing in them.

Get More than Just One Quote

A common mistake often made by first-time insurance buyers is to get one quote and just run with it. An agent you pick at random or one who represents a single insurance company will almost always push the highest priced plan towards you, since high-value insurance gets them high commissions.

Instead, consult an independent insurance agent to help you compare products from various providers, so you can pick one that offers the best value and fits your needs too. Ask them to provide you with quotes for all the products that they have to offer, and go through each one thoroughly.

You may be pleasantly surprised to find that some insurance plans cost a lot less than others, but do everything that the higher-price plans do!

Select a Term Life Insurance Plan

When it comes to deciding the on a life insurance policy, it’s always a good idea to start with a term life insurance plan. The reason behind this easy – upon the death of the covered person, the death benefits can keep the family financially secure, while monthly payments during the term (while the policy is active) also help to defer costs of living.

Term life plans are more affordable than whole life insurance, and they’re a good way to ensure your family is covered in case of your death. If you are looking at higher long-term benefits, though, check out some whole life plans instead.

Only Buy What You Need

A lower priced insurance policy will cover fewer items, and you may tell yourself that you’ll simply get another plan for a particular property or asset. This is not the best way to go about it, though, since multiple plans can add up to a lot more than a comprehensive insurance package from a single provider.

In case a single plan will not cover everything and you need more than one policy, keep the total number of plans as low as possible. When it comes to buying insurance, it’s still best to ensure that your current plan covers all your needs. That way, when the unexpected happens, the benefits come from one source.

If you are not used to spending freely, you’re probably thinking twice about buying insurance. However, when it comes to frugal living, it’s not about spending as little as possible. Rather, the goal should be getting the best value for every penny, and you can easily apply the same concept to the process of shopping for insurance tool.

Author Bio: Joel Ray is an experienced financial advisor and his areas of specialization include retirement planning and risk management. When Joel is not working with clients, he is busy creating informative blogs and whitepapers. Follow this financial whiz @life_centra. You can also check out his fiscal blogs on Lifecentra.

About The Author

Edwin is a marketer, social media influencer and head writer here at Frugal Wiz. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.

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