People who are inspired to learn more about their finances during Financial Literacy Month shouldn’t overlook the effect that insurance can have on their bank accounts.
Each November, financial education advocates urge consumers to take time to study money issues. An important part of achieving financial literacy is understanding how insurance affects your bank account, says Tony Steuer, director of financial preparedness at United Policyholders, a consumer advocacy group.
Having the proper coverage can shelter you from hardship and poverty, Steuer says. “It protects us against risks that we can’t afford to take care of out of pocket,” he says.
Basic insurance literacy starts with reading your auto, home and business insurance policies. Most of these policies gather dust after they’re purchased.
Evaluating your insurance protection needs is an ongoing process. As your circumstances change, so will your needs. Over time, the amount of possessions you own may increase, requiring more homeowner’s insurance. If your risk of filing a claim drops, you may qualify for a discount. For example, if you begin working from home and start driving less, you may be eligible for a reduction in your car insurance premium.
Before you make policy changes, determine how much coverage you have and the range of each policy. The key is to get all the information before making a decision. Speaking with your Insurance broker allows for you both to work together towards understand your needs and the extent of your policy.
The goal of insurance is to make you financially whole following a mishap.
At Acumen Insurance Group, we aim to meet your unique needs and offer professional advice on the best insurance for you. Your best insurance is an insurance broker. For over 30 years, we have been working with families, communities and businesses to provide protection and advice at the best rates possible. Your best insurance to find the proper protection at a fair price, and help in the event of any future claims.