facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Military Finances 101: 6 Common Insurance Mistakes to Avoid Thumbnail

Military Finances 101: 6 Common Insurance Mistakes to Avoid

Insurance Managing Your Finances

Having at least a basic insurance plan is essential for anyone. While many jobs cover your insurance needs, not all of them do. It's important to figure out what insurance plans you need and what works best for you and your family. 

Choosing an insurance plan can be complicated, so when doing so, try to avoid these mistakes. 


Mistake #1: Not Having Enough Insurance

Less comprehensive coverage or basic insurance plans can equate to lower premiums every month. The problem is - you’re likely to make up the difference anyway when it comes to your deductibles and out-of-pocket expenses. By not giving yourself enough insurance coverage upfront, you’re taking a gamble of whether or not you’ll actually need to use it. A fender bender could quickly cost you more than if you had paid the higher premiums upfront.

If you're married and/or have children, SGLI may not be enough life insurance coverage, depending on your rank.

Mistake #2: Over Insuring Yourself

Talk to an insurance agent to figure out the right amount of insurance for your specific circumstances. Just as you don’t want to under-insure yourself and your possessions, over-insuring could be equally as costly. 

Mistake #3: Not Asking for Discounts

If you don’t ask for a discount, then you may never know if you would have gotten one or not. There are possible hidden discounts you can qualify for, but if you don’t tell your agent and ask what you can get, they will never know that they need to apply them to your account. 

Mistake #4: Not Looking Around for New Policies

You should be shopping around for a new basic insurance policy every few years. In some instances - especially if certain circumstances have changed - you can save money by updating your policy or switching providers. Some insurance companies may even offer discounts based on things like where you work or where you went to college. 

Just remember when shopping for Life Insurance to make sure there isn't a War Clause or Aviation Clause if you're an aviator

Mistake #5: Misunderstanding Your Policy

Make sure that you understand what your policy covers, under what circumstances it can be used and what you can still expect to pay out-of-pocket. Having a thorough understanding of your policy now means avoiding unwelcome surprises when it’s time to file a claim. 

Mistake #6: Getting Rid of Long-Term Care Insurance

If you’re notified that your premiums are about to rise, you may be inclined to drop your long-term care policy. However, it’s important to remember that purchasing a new plan may cost even more, especially since you are now older than when you first purchased your original policy. And foregoing long-term care coverage altogether puts you and your family at greater risk of future financial turmoil.

Whether you’re looking at  auto, life or any other insurance policy, there are plenty of considerations to keep in mind. If you are choosing a plan through your work, make sure you are speaking to someone who works at the insurance provider to get all the answers you need. If your work does not cover your insurance, speak to representatives at the insurance company and your financial advisor to help make these decisions.

If you found this article useful, you might like the following blog posts:

Military Finances 101: 5 Things to Look for When Choosing a Life Insurance Policy


Military Finances 101: Emergency Funds...Yeah, They're Important


Military Finances 101: Permanent Versus Term Life Insurance




This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.