Sometimes We Tell Our Clients Not To Buy Insurance
April 29, 2015
As we continue our articles on a new way to think about the insurance buying experience, we want to turn our attention to times when insurance may not be the right solution. Remember, we are more interested in helping our clients find the right insurance or risk solution.
We will be the first to say that certain types of insurance may not always be best for your needs. We believe each client is unique and therefore requires unique insurance solutions. But there is more to the process.
First, you and your agent need to talk about what your risks and goals are regarding the issues. Your agent should be able to help you identify all the risks and, only then, provide solutions.
Here is a good example:
We recently had a client buy an older used car for one of their kids. After we reviewed the ACV value for the client, we recommended that he not purchase collision coverage. We told him to use the savings to put into an auto replacement fund. This will save the client hundreds of dollars over time.
Here are other kinds of insurance you may not need:
1. Universal life – Typically term life insurance is going to be a better fit for you. Term life costs less and you can take the premium difference and invest it yourself.
2. Extended warranty plans – The warranty premiums are mostly commissions paid to the salesperson. Some credit card companies offer this protection if you make the purchase with their cards.
3. Mini Storage Insurance – As long as you have homeowner’s or renters insurance you may not need to buy special insurance. Most policies have automatic coverage for property away from your primary premises. Call us for details and limitations.
4. Rental car insurance – If you have personal auto insurance, you may not need to buy additional insurance from the rental company. Call us for details and limitations.
5. Mortgage life insurance – This protects the bank, not you. If you were to die, the payout goes to the bank, not your family. You are better off buying term life insurance.
At Innovative Insurance we are dedicated to making sure that you have the right coverage. Contact us today to see what kinds of insurance you need and those you could do without.