Financial Literacy Should Include Insurance Consideration
If you’ve already spent time reading Greenery Financial or watching financial education and news, the term financial literacy may already be familiar to you. The objective of financial literacy is to educate people on basic financial concepts - this way, people can have better strategies on how they can manage their money and lead a healthier financial journey. But did you know that people who want to be financially literate should consider the effect of insurance on their savings?
According to Tony Steur, director of financial preparedness, insurance consideration is part of financial literacy education. Having the right coverage can protect you from poverty, he added. It’s a very important element of wealth preservation.
Checking your insurance protection is a continuing process. You can’t just avail of policy, keep it in the drawer and never check on it anymore. As your life circumstances change, so your insurance needs. You may acquire a lot of properties or possessions, hence the need for more homeowner’s insurance.
Availing insurance should not be a difficult task. Various agents and websites are of help to you in making this task a lot simpler. The best strategy is to have comparison shopping and make the best choices.
Don’t get easily hooked by advertisements and commercials. Why? Because the biggest misconception about insurance is the idea that they are alike - that whether you buy a lot of policies or not in a company, the benefits are all the same. That is not the case.
Many insurance companies guarantee that one can save a lot by buying solely “bundle” home and car insurance in a company. What the “insured” doesn’t know, however, that they can possibly save more money by availing policies by comparing prices and buying policies separately.
Don’t just rely on what the insurance company and the agent tell you. It is also important that you evaluate the “insurer” company yourself. The goal is to make sure that the company will be at your back once you need to file a suit.
Getting the proper homeowner’s insurance
Home insurance is the most popular insurance availed by everyone. Thus, it is important to know the basics of it if you wish to be financially literate. It’s not a luxury but rather a necessity. You don’t need to actually own a house because even landlords require their tenants to have renter’s home insurance.
When finding the best homeowner’s insurance, don’t be confused with home replacement costs and real estate values. The former is the literal value for the replacement of your home. The latter, however, is the home replacement amount plus the labor and material costs.
The way to becoming a financial literate is not easy peasy, it requires hard work but it is always worth it. Take note that insurance is there to help you after a life mishap. If you’re financially educated enough, you can get your costs and expenses reduced. Indeed, knowing a lot can help you along the way.