Checking your insurance checklist so every aspect of your life is covered

  • Jeff Zander has more than 40+ years of experience working in the insurance industry and specializing in all areas of Personal, Business and Employee Benefit programs.

Purchasing insurance can feel overwhelming. Unfortunately, many insurance companies try to sell you an array of products that, quite frankly, are a waste of money.

I’ve compiled a checklist with five core insurance programs that I recommend in conjunction with an emergency fund.

These programs can help everyone and their families be adequately protected without wasting money:

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Automotive 

When selecting an auto insurance plan, the essential portion to consider is the liability coverage. The liability coverage will cover the costs of any property damage or bodily injury you’re responsible for if you have an accident. This is your greatest risk while operating a vehicle, and increasing this protection is typically very inexpensive.  

Additionally, always consider as high a deductible as your savings or emergency fund will allow since it helps reduce your rates. Having lower deductibles typically leads to more frequent smaller claims, which the insurance companies will use to either cancel or raise your rates.

Also, if you have an older car, check its Actual Cash Value, ACV, to see what you would be paid if it was totaled and compare that to the cost of insuring that amount. It can be a better decision to skip comprehensive and collision all together and save those dollars in some cases.    

Homeowners  

Other than your income, your home is typically your greatest asset. Homeowners insurance is essential for protecting your home against natural disasters, theft and other unexpected damages.

Be sure to include extended or guaranteed replacement costs since this provides the funds necessary to rebuild your house if the policy’s value is not enough to cover all those costs. Also, consider flood and earthquake insurance since they are often excluded from traditional home insurance policies.  

Like auto insurance, always consider the higher liability coverage on your home insurance policies.

With more people working from home and having pets since COVID-19, we have seen more injuries to visitors and a 40 percent increase in claims related to dog bites.  

Also, always compare combining both your home and auto with the same company since most provide discounts, which is a simple way to save.   

Health 

While health insurance can be expensive, you don’t want to leave yourself vulnerable to the financial consequences of unexpected medical issues. Medical advancements today come with a heavy price tag, and the lack of health insurance can wipe out not only a family’s current savings but their future earnings. Determine the highest deductible you can afford based on any ongoing medical needs and your emergency fund. 

Health Savings Accounts (HSAs) can also be very helpful, as they allow you to reduce your cost through higher deductibles while keeping the savings in a tax-free account to use for future expenses. 

Life 

Term life insurance is the only life insurance plan I recommend, as it’s the most affordable way to provide the protection your family needs. Never “invest” in a cash-value life insurance policy. Instead, start with a term policy amount based on 10-12 times your income on a 15, 20 or 30-year plan (based on your age and financial situation). Remember, as you pay down debt and grow your savings, that amount can be reduced and eventually eliminated.   

Even with term life plans, stay away from policies that have many add-on riders like a return of premium, critical illness or other living benefits. They are a waste of money and unnecessary if you have the other core insurance plans in place. 

Long-Term Disability 

The final core insurance product to consider is long-term disability coverage. Your greatest asset is your income, and this type of coverage is the most thorough and affordable way to provide protection should you lose the ability to work.  

In most cases, a plan offered by your employer would be the best avenue to consider as they are typically the lowest cost option, and eligibility is guaranteed as an employee. If a group plan isn’t offered or you prefer an individual policy, seek out a plan with at least a five-year benefit period since most disabilities are resolved within five years.

However, if it fits within your budget, a benefit period that lasts until age 65 would be ideal. There are many elements to a disability plan, so make sure you review all your options with a qualified agent.  

While I can’t promise that navigating the world of insurance will be easy, following these tips can go a long way in helping to guarantee you get the best value and protection for your insurance dollar.

Remember that contacting an independent agent representing many companies is most beneficial since they shop for you to find the best options, saving you time and money. To learn more, visit www.zander.com.  

Jeff Zander has more than 40+ years of experience working in the insurance industry and specializing in all areas of Personal, Business and Employee Benefit programs.   Nashville-based Zander Insurance Group was founded nearly 100 years ago by his great grandfather Herman Zander, and Jeff is CEO of this fourth-generation, family-and-employee-owned business.