As we worked on our PLUP – Personal Liability Umbrella Policy Newsletter and Blog Post, we repeatedly ran across reasons to discuss our fondness to the Higher Deductible options on almost everything.
This article has also spawned a related article, about Emergency funds – neat chain of events articles!
Consider the High Deductible Option – On Most Everything
Health Insurance, Auto Insurance and Homeowners are the main types of ongoing insurance that allows you more control in your cost via the deductible.
The Auto Insurance Example
One of the easiest examples is the good old automobile insurance. We like high deductibles of near one thousand dollars due to the tremendous longer term premium savings that will occur over time. We certainly acknowledge that changing your coverage deductible to a higher amount today and having an accident tomorrow is bad luck and will throw you into the hole, but over time, if you are not a repeat offender, your saved premiums will more than pay for the higher deductible.
Health Insurance Example
Let’s face it, the insurance industry wants us as consumers to take more control over our medical expenses. Rather than run, embrace this coming inevitable change, and review higher deductible health insurance plans. Similar to the Auto example, if you opt for a higher deductible plan and something happens in the very short term, you will be in the hole on this decision, however time is your friend. Having your health coverage pay for that visit to the Dr. for a cold is nice, and may make you feel good after you leave the office, however if you dig deeper, it is likely you may be paying dearly for the “free” visit.
Homeowners Insurance Deductible
Yep, there is a higher deductible option for your homeowners policy as well. This option is usually in the form of a percent of the dwelling. Be careful when reviewing these options as our experience has shown premiums and out of pocket costs can vary greatly depending on the geographic area of your dwelling and a higher percentage deductible can get out of hand if you are not careful on a higher priced dwelling. Bottom line, the homeowners policy has more moving parts due to the differences in coverages, geographic area, dwelling itself and your claim history. Take extra time in adjusting this deductible, but once you get clear on all costs, obligations and options, it’s likely you will find savings in this as well.
Have a Great “High Deductible Savings” Day!
John A. Kvale CFA, CFP
October 2016 Video, Financial Planning Tips and Economic Review- By John Kvale
Here is our October 2016, Financial Planning Tip (S) and Monthly Economic Review, along with a Video for your viewing and listening pleasure. Hope you enjoy!
October 2016 Video
Financial Planning Tip(s) –
Charitable Giving from An IRA
Yes we CAN finally donate funds from an IRA, as our post reminds, as long as we meet the following requirements:
Tricks for Getting Health Insurance
Here are a few great ideas we have learned over the years, as mentioned here for getting Health Coverage:
Cool College Review Information
Our somewhat humorous, but handy review of Princeton College Ranking Review. Some good and others, well maybe you would rather not be a part.
Economic Update
Banks are Lending
On the far right…. look at that money dripping out of the banks and into the US Economy….
Speaking of Economy, how about this NICE GDP (Gross Domestic Production) release- Far right graph bar rising… THAT’s GOOD!
Have a Great Day!
See you next month !
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
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Posted in Earnings, Economy, Education, General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Retirement Planning, Tax Related, Video
Tagged Charity IRA Distribution, GDP, Health Insurance, IRA Distribution, Princeton College Review