Decreasing Insurance Premiums: Home Insurance and Life Insurance

This guest post is from Allen Grove, a a freelance writer who focuses on financial, health, and insurance.

Whether you are a senior or a soon to be senior, you might be hyper-aware of your own finances. As the years pass, we must consider not only how we are going to pay for our day to day expenses, but also how we are going to continue to prepare for retirement. Auto, home, and life insurance are three ways to prepare for the future. Insurance is a tradeoff. You pay money now with the promise of financial support should the need ever arise.

While home and life insurance are not required, you will need to continue to receive auto insurance if you want to continue to drive. While the decision to invest in life, and home insurance can be a daunting endeavor. There are ways to make it financially feasible—even if you are currently retired and on a tight budget.

Before pursuing any of the money saving tips, you should consult various Dallas insurance agents. This will help you determine what insurance company will offer you the best premium. Not all insurance companies will offer all of the deduction that I will mention below. Also remember to check the company’s reputation. The last thing you need is to sign up with insurance with a company that has a history of denying claims. If your claim is ever denied, you may want to consult a lawyer about your options.

Multiple Policy Deduction

Many insurance companies like to encourage people to take out multiple policy plans. While this might be above your current budget, it is always important to consider all of your options. While the multiple policy deduction is traditionally for individuals who take out both auto and home insurance, you should ask if other insurance policies will also qualify you for this discount. Most insurance agencies offer a 20 to 25% deduction off both your premiums if you have multiple policies.

Home Insurance

Your ability to purchase home insurance will depends on if you own a home. If you do own your own home, investing in home insurance can help you pay for damages and repairs from unforeseen fires, natural disasters, burglaries, and various other disasters that could cause a financial strain. If you own a home, but are currently throwing all your money into your retirement fund. You can decrease the amount home insurance will affect your retirement fund with these deductions:

  • Age of Insured. Many insurance companies realize that their elderly clients are currently saving money for retirement or living on a tight budget.  Due to this fact people over 60 may qualify for a senior citizen discount. This tends to be around 15% off your home insurance premium.
  • Personal Status. Insurance companies offer discounts for people who are either married or widowed. The discount tends to be around 5%.
  • Protective Devices. You can decrease your premium by 15% and increase your personal safety by installing protective devices in your home. Protective devices include fire alarms, security systems, fire extinguishers, smoke detectors, sprinklers, and dead bolts. Before pursuing this deduction, you might want to determine how much these additions will cost. Security systems in particular could have an additional monthly fee that could cut into your savings as much as the monthly premium would.

Life insurance

Life insurance can help your family pay for death, funeral, and burial costs. It can also offer financial protection to your spouse, children, and grandchildren if you die which will ensure that they live a comfortable life style after your passing. The cost of life insurance will depend in part on your current health and habits. You can decrease your life insurance premium in two ways.

  • Decrease Risky Behavior. Risky behavior can make you a riskier person to insure. Some risky behavior that you might engage in is smoking, constant traveling outside the United States, and hard-core activities like rock climbing or spelunking. You can decrease your life insurance premium by eliminating these risky behaviors.
  • Fix Health Habits. Pre-existing health conditions can make you a riskier person to insure. This can lead to a higher life insurance premium. You can decrease this premium if you demonstrate that you are proactively dealing with the health problem. For example a diagnosed diabetic would demonstrate that they are dealing with their health problem by consistently taking their insulin and living a healthier life style.

Insurance can help everyone protect their family and finances. For the elderly who are either retired or saving for retirement, insurance can be vital for your financial safety.  Without insurance you may need to pay out-of-pocket for any potential home catastrophe. Life insurance can help your spouse and family financially after you pass away.

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