Transcript: my-financial-minute-insurance-family

Question: What can help lower homeowner insurance rates?

A. Deadbolts; B. Smoke detectors; C. Alarm systems; D. All of the above

Well, that special day has come and we’ve started a family. It's an exciting time. And yet it’s also a scary time, as we now have others who are depending on us. For this reason, we have lots of new things to consider.

We might be looking into swapping our car to a more family-friendly car, or even considering moving to an entirely new place.

And, not to make things even more complicated, but there’s another thing that we really ought to consider—insurance.

I know, it’s not nearly as exciting as decorating our child’s room, but a little time spent here can make a big difference in our financial security—which is a LOT more important now that there are kids to consider.

For example this is a perfect time to re-evaluate our auto insurance. Being a parent can sometimes lower our regular auto insurance rates, thanks to our more careful driving.

It’s also a good idea to take a look at our health insurance to make sure we that have the co-pays that fit within our budget and optimal coverage for our family.

And we should seriously consider purchasing term life insurance—to ensure our family is covered in case something should happen to us.

As our family grows and new hobbies develop, we might purchase an RV or a boat. Keep in mind - these special vehicles will need their own insurance policies.

And finally, as we change jobs and gain more assets, it’s a good idea to look into umbrella liability insurance to further protect what we have worked so hard for.

Now that we have a family, we have lots of insurance options to consider, including Auto, Health, Homeowners, Life, Specialty Vehicle and Umbrella Liability insurance. Doing this can make sure our loved ones are protected, and may even save some money!

Speaking of saving, the answer to the quiz question is ‘D’ - All of the above. As we start and grow a family, safety features such as alarm systems, smoke detectors and deadbolts not only help keep the family safe, they save money because they reduce the likelihood of insurance claims.

I’m Greg Morishige from My Financial Minute. Check back often to continue the conversation.

Source: *Insurance Information Institute, "Raising Children

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