Too Much Insurance Can Be A Financial Burden

Aug 21, 09 Too Much Insurance Can Be A Financial Burden
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It is a common saying that you can never be too careful.  However, far too many people are struggling financially in a heroic attempt to meet all of their insurance obligations.

Paying extra coverage for services that you do not need, or are unlikely to need, is unnecessary and can lead to unreasonably high premiums.  It is well worth your time to sit down with your doctor, evaluate your current health and medical history, and find a suitable policy that covers your specific needs.

In addition, if you are carrying dependents, make sure that they have not become too old to be on your policy.  If possible, encourage them to purchase their own insurance.

Over-insuring “irreplaceable” items also carries some risk.  Without pictures and appropriate documentation, in the event of an accident, insurers will give you less than what you believe the item is worth.  Have your items properly appraised and pay a premium that is consistent with the real value of your property.

Cars are another area where it pays to be fiscally responsible.  If your car is old, or has needed repair work, investigate liability insurance as a viable alternative to full coverage.  Unless your car is under warranty or especially valuable, carrying full coverage might be an unnecessary strain on your finances.

Despite the myriad problems with the healthcare industry, insurance is a necessary fact of life.  Yet, similar to everything else, it pays to explore your options.  Scale down to the essentials and shop smartly for the best policies that are within your budget.  Just because we need insurance does not mean we have to overpay for the privilege.

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