How to Make the Most of Your Life Insurance
There are a lot of people who just want to get out of debt.
But that doesn’t mean you can’t also make sure your personal financial situation is secure with insurance.
We asked our favorite experts to share their favorite financial strategies for making sure you and your family have a secure future.1.
Insure your home first: One of the easiest ways to make sure you don’t get slammed with a mortgage is to get your home insured.
With the average home costing around $1,300, the average homeowner in the United States will pay an average of about $2,200 for insurance.
But if you have to make a down payment on your home, you’ll be paying about $3,200 per year for the coverage.
With this type of savings, it’s not a bad idea to get insurance on your house first, then work toward a downpayment.2.
Get insurance for your car: Even though cars are generally considered safer than other forms of transportation, there are times when they need to be taken out for routine maintenance.
The National Automobile Dealers Association recommends car insurance for every vehicle in your family, and you can always get some type of coverage for your auto.
Make sure your insurance provider pays for your vehicle insurance, too.3.
Use your car insurance to pay off student loans: If you have a student loan balance due on your loan, you may want to look into getting auto insurance to help pay off your student loans.
Depending on the terms of your loan agreement, this could be a great option if you already have student loans in your name.
The amount you can get in student loan auto insurance is much higher than what you could get from your car coverage, so it’s best to think about whether this option is right for you.4.
Avoid having to pay for insurance on a vehicle you’re buying: When you buy a car, you don (or at least shouldn’t have to) pay for the insurance, and that means you have the option to opt out of paying your insurance on the car.
If you don´t, you can go the extra mile and get a new car that is insured through your insurer.5.
Make extra payments for insurance coverage: If your car has collision and roadside repairs, you should consider getting auto coverage.
This means you won’t have the expense of buying a new vehicle, but it can be an extra way to save money when you need to cover a major repair.6.
Shop around to find a good car insurance company: It’s best if you shop around to see if you qualify for the best coverage.
If a company offers the best price, you will save money by getting the most out of your coverage.7.
Make monthly payments: You’ll want to make regular payments to your auto insurance company every month so that you’re making regular payments on your loans.
You can also save money if you can put aside a certain percentage of your paychecks toward your coverage each month.
If that percentage is less than 50%, you’ll pay less than the amount you would if you made monthly payments.8.
Keep an eye on your credit score: Some people can save thousands of dollars by keeping an eye out for good credit scores.
This can help you get your insurance quotes, and it’s a good idea to be cautious of auto insurance companies that aren’t offering good credit.
If they offer you coverage, it might be worth taking the extra step of checking your credit report before you sign up.9.
Learn about your state of health and disability: If a car is in need of major repairs, a medical condition can affect your coverage, as well.
Having an adequate and timely medical bill could help you save money, but if you’re sick, it could also mean that you won´t be able to drive your car.10.
Get a car loan: Car loans are another way to make extra money, as they often provide you with the opportunity to get loans with the lowest interest rates available.
You should always ask about car loans when you apply to car loans to make certain you can qualify for them.11.
Get help with your taxes: Taxpayers are often surprised to learn that a lot more than $100,000 can go toward a car insurance premium.
With a car that costs about $250,000 to purchase, you might be surprised to find out that there is a substantial tax deduction available for homeownership.12.
Get discounts on your car or home insurance: Many insurance companies offer discounts on car insurance.
These discounts can save you money and help you stay ahead of the curve.
Many of the best car insurance deals come with low premiums and the ability to pay a smaller percentage of the premium than other companies.