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Are You Paying Too Much for Your Insurance?

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We all know that insurance is a must-have, but are you actually getting your money's worth? Or are you throwing cash at unnecessary policies like confetti at a wedding? Let's dive into the world of insurance and find out if you're over-insured!

When Your Insurance Coverage Overlaps

Ever had that moment when you realize you have two identical items and wonder, "Why on earth did I buy this twice?" Well, the same thing can happen with insurance!

Example Alert!

You have a personal health insurance policy and also an employment insurance policy. If both cover the same stuff, you're basically doubling down for no reason. Instead of being a super-prepared insurance ninja, you're just a ninja with too many swords.

Pro Tip: If your employer's policy is solid, consider scaling back your personal policy. Keep your coverage tight and your premiums light!

High Insurance Premium Eating Into Your Cash Flow

Think of your insurance premium like a vacuum. If it's too high, it'll suck up all your cash flow, leaving you with an empty wallet and a sad bank account.

The Golden Rule

Your coverage should be around 10 times your annual income. Enough to keep your family afloat for a decade if you suddenly can’t provide for them.

Got a higher net worth now? It might be time to reassess your life insurance. Don't let it drain you dry!

When Your Coverage is Too High

Insurance is your financial safety net. But are you paying for a net made of gold when a sturdy one will do?

How Insurers Set Premiums

Insurers use underwriting to figure out how risky you are. Are you a high-flying, sky-diving adventurer, or do you enjoy knitting on the weekends? Your lifestyle affects your premiums.

Do a self-check:

  • Family history of illnesses?
  • High-risk job?
  • Smoker or party animal?

Adjust your coverage so it fits your lifestyle and wallet.

Get Smart with Your Insurance

Why pay for travel insurance every time you jet off when you can get a travel credit card that covers it? For car insurance, find policies that reward you with discounts or cashback if you’ve been a safe driver.

The Final Takeaway

Insurance shouldn't break the bank. Review and tweak your policies regularly to make sure they're giving you the best bang for your buck. Remember, it's not just about having coverage; it's about having the right coverage for your needs.

Stay savvy, stay covered, and keep more cash in your pocket. For more tips and the best insurance products out there, check out our website. Happy insuring!

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www.imoney.my/articles/are-you-over-insured
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