Is Insurance Worth the Money?

Many of us have insurance for all sorts of different things. It might for our healthcare, travel, car, belongings or other things. We will normally have to pay money each month for the insurance and sometimes it can feel like we are just paying money out and not really seeing much in return. It can therefore be worth working out whether we really need all of the insurance that we have.

Consider what it is for

It is worth starting by thinking about what the insurance covers you for. Some insurance might be more important than others and so it is good to take stock and think about this so that you can cancel any that are not that important. Having health insurance will allow you get medical care and you may feel that this is essential, for example. However, you may decide that having life insurance so that your children get a pay-out is less worthwhile as you could put that money into a savings account each month and soon have enough for them anyway. Think through each one and decide whether you really think that having them is necessary.

Could you afford not to have it?

As part of this process think about how you might manage without the insurance. Consider how you might cope if you were to be in a situation where you might have needed insurance but you did not have any. For example, could you cope with cost of medical care, replacing possessions if they were stolen, repairing your car if it was involved in an accident or things like this. Consider what each insurance policy you have is for and whether you could manage if you did not have them. You may have to turn to a loan otherwise.

How much will you save if you cancel

It is also worth thinking about how much money you will save if you cancel the insurance. You will probably be paying a monthly amount or a lump sum annually. If you did not pay out that money you would be better off and it is worth considering how much better off you will be. Think about whether you could perhaps put that money into a savings account and how soon it will add up so that you would have enough to fall back on so that there would be no need for you to need the insurance.

Is the peace of mind worth it?

Insurance gives many of us peace of mind. We know that if we have the insurance it will mean that we will be able to draw on it should there be a situation where we need it. Knowing it is there can be really helpful for many people and they do not have to worry if they do not have savings or things like this. Think about whether you get this benefit from your insurance and whether it will make you feel uncomfortable if you no longer have it.

Can I get it cheaper?

There are many insurance companies and so an alternative way to cut down on the cost of insurance is to find cheaper cover. Although getting rid of unnecessary cover is important, there is likely to be quite a few insurance policies that you will want to keep. Therefore, you will need to think about how you will get the cost down of those that you do have. If you compare different providers you will see that the costs can vary quite a bit. This might be because they offer different levels of cover, but it may also be just because some companies are more expensive than others. Do some research and find out which are cheaper and see whether you can take on a cheaper one and still benefit form the amount of cover that you need. It might be that you are paying for more than you need or that you are paying more for the cover that you want than you need to. It is good to spend some time doing this because you could find that you will save money on each insurance policy that you have and these savings could add up to a significant amount of money. Just make sure that you read reviews and are confident that the insurer and the policy will provide you with a good service and give you what you are looking for in insurance cover.

It is worth reviewing your insurance cover every year or so to make sure that you are getting the cover that you need at a competitive price. It does not take long to switch insurers and you could end up saving a significant amount of money. It will take a little time, but the more often you do it, the easier it will become and you will be able to get through the process quickly.

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