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Learn the Language | Budget and Save | Save and Invest | Take Control of Debt | Protect Your Wealth
After working hard to create personal wealth, you need to protect it. People acquire insurance to protect themselves from major financial loss. Insurance is simply a promise of reimbursement for a loss in return for a premium paid. When shopping for insurance products, consumers should match their needs with what the product offers and seek out the best deal. A solid credit history is also important because insurers use credit information to price homeowners insurance policies. You can buy insurance to cover all kinds of risks, but basic needs can be met with property, health and life insurance.
Tips for Protecting Your Wealth:
- There are many types of property, health and life insurance, so do your research and seek good advice.
- Take advantage of group insurance through your employer or other associations you may have.
- Study the needs of your family and decide how much you can afford to pay.
- Shop around and get at least two quotes.
- Consider a higher deductible to lower your premium.
- Ask about other discounts that may be available (for a good driving record, safety equipment, multiple policies with the same provider, etc.) to reduce your cost of coverage.
- Review your insurance coverage annually to make sure you have appropriate coverage as your situation changes.
- Like all investments, be sure to get all the facts before parting with your hard-earned money.
Source: Federal Reserve Bank of Dallas Building Wealth, 2006. Reprinted with permission. |
