Insurance for financial security and peace of mind

Written by Briana Cavanaugh

September 13, 2021

What can you do today to help reduce your financial worries? Actually, there are a lot of different tools available, both emotional and practical! Let’s talk about how insurance can help save you money and stress.

Once while driving on a gravel road, I hit a pothole. When I got home I found that the car was leaking oil badly, so I took it to the shop. They told me the cost of repairs would be more than two thousand dollars, none of it covered by the warranty. They did, however, suggest that I call my insurance. In the end, I paid only $100 for the $2200 in repairs. Useful!

One thing I rarely think about these days is my insurance. Years ago I bought coverage as suggested by the academic honors group from college. I also bought renter’s insurance for my apartment. I didn’t think much about it. I was young!

When my income improved, I decided to go all out and get full coverage, uninsured motorist, collision, the works — to take really good care of myself financially. It was a better choice than I realized.

What I found is that this small bit of planning has saved me a lot of money. When my apartment building had a break-in, the insurance covered our loss at $1500.

This is an example of how an ounce of prevention can be worth more than a pound of cure. The $1400 a year that I was paying for insurance more than made up for the claims I had to file in that time.

Insurance is a form of self-care. From one entrepreneur to another, I recommend that you review with a professional what kinds of insurance you should get and how much. In addition to health, life, accident, car, and property owner or renter’s insurance, business owners may need error and omission coverage (E&O) or liability insurance. Depending on your type of business, additional types of coverage may be recommended or required.

At Bliss Your Money, we don’t sell insurance, but we hear from people who’ve under-insured themselves all the time. They thought they’d save money by opting for cheap insurance. And then they struggle to cover unexpected expenses when things go wrong. It’s painful and unnecessary.

When you choose a lower level of coverage than you can afford, the amount you save in premiums is often minimal. On the other hand, when you opt for more coverage, the sense of peace it brings can be profound. So really consider the ramifications of that decision.

Even if the amount you spend on coverage ends up exactly the same as or a bit more than what you would have spent on car repairs and such, you’re still better off with insurance. Think of insurance premiums as paying on an installment plan. An expense that you budgeted for and that is spread out over months is a lot easier on your finances than trying to pay the same amount all at once. That’s why it’s better for your peace of mind. Difficult emotions can be a healthy flag about real problems, but when stress turns chronic it takes a toll on your body.

If you’ve done your budgeting work, you’ll know whether an insurance offer is within your budget and what liquidity you could move around if you needed to.

Making the right choice doesn’t have to be a mystery. There’s an agent near me that I love, Ruth Stroup, who does amazing things. I’ve seen her increase a client’s coverage on a home while simultaneously decreasing their payments because she did some consolidation. She’s done great work for my clients.

I’ve also been happy with SafeCo because they’ve done such a great job over the years.

Insurance is about increasing your financial security. If you think you don’t have the coverage you need or you have more than you need, contact a professional and ask questions. The good ones will provide information without pressuring you and only invite you into their practice if they can help you.

What insurance carriers, brokers, or agents do you recommend? We love being able to connect people to service professionals who’ll do a great job!

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