ARE you paying too much for insurance? Do you have the proper amount and type of coverage?
Life insurance is normally used to replace needed income in case the income earner dies. The amount can change as this need changes.
Having separate life insurance on your mortgage (not always the best option) or coverage at work could reduce the private policy amount you need.
Depending on the type of policy, you might be able to lower the premium cost if you remain healthy and requalify medically. That could save you hundreds, even thousands of dollars over the years.
By all means look online for quotes, but for larger policies, and business and tax planning information, deal with a knowledgeable agent more interested in your wellbeing than her or his commission, somebody who can help you choose the best policy for your situation and shop around for the best premium.
Disability insurance, even if provided at work, can be as important as life insurance.
Make sure the policy can't be cancelled and covers you for your normal line of work. Many policies won't provide benefits if you are able to do any kind of job, no matter how poorly paid or unpleasant.
Property insurance often includes liability insurance, which is protection if you are sued.
Make sure you have a video or at least a photo record of household possessions, and keep this record outside the home.
Again, check what's available online, but an agent could be helpful in guiding you to a company that, for example, might not have the cheapest price but has a lenient approach to claims.
Travel insurance is especially important for medical emergencies outside Canada, but first check if you have coverage through work or if it is included or can be added to a property insurance policy. Some countries provide certain medical services free to visitors. On most insurance policies, increasing the deductible can decrease the premium.
Bottom line: you need insurance to protect against losses you couldn't afford to cope with on your own.
Mike Grenby is a columnist and independent personal financial adviser. He'll answer questions in this column as space allows but cannot reply personally. Email: mike@ grenby.com.
