{"id":1150078,"date":"2019-11-15T12:12:52","date_gmt":"2019-11-15T18:12:52","guid":{"rendered":"https:\/\/dailyreckoning.com\/?p=108317"},"modified":"2019-11-15T12:12:52","modified_gmt":"2019-11-15T18:12:52","slug":"clouded-insurance-quandaries-revealed","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1150078","title":{"rendered":"Clouded Insurance Quandaries Revealed"},"content":{"rendered":"

This post Clouded Insurance Quandaries Revealed<\/a> appeared first on Daily Reckoning<\/a>.<\/p>\n

Dear Rich Lifer<\/em>,<\/p>\n

<\/p>\n

I was in New York City this week for the 2019 Paradigm Press Summit, where I delivered a presentation on my current market outlook and some of my favorite investment ideas for the upcoming year.<\/p>\n

The biggest one has to do with insurance.<\/p>\n

But I\u2019m not about to steal my own thunder or even give you a synopsis of the speech right now. You\u2019ll have to wait for access to the recording of the event if you didn\u2019t watch it live to learn more about that particular recommendation.<\/p>\n

For now, to whet your appetite, I\u2019m going to answer several other big questions I get regarding the topic.<\/p>\n

Let\u2019s start with a really popular one \u2026<\/p>\n

Question 1 <\/strong><\/h3>\n

\u201cIsn\u2019t it simply better to forgo an insurance policy whenever you can afford to self insure?\u201d<\/strong><\/p>\n

I think it\u2019s safe to say that most of us generally hate paying insurance premiums or dealing with insurance companies at all.<\/p>\n

I almost always recommend declining things like rental car insurance as long as you\u2019re covered by your regular carrier and\/or a credit card.<\/p>\n

Likewise, I universally avoid things like item-specific insurance offered by retailers, cell phone companies, appliance sellers, etc.<\/p>\n

And even in the major categories, you may be able to avoid having a policy.<\/p>\n

Whether that makes sense for you depends on a number of financial and \u201cmental comfort\u201d factors.<\/p>\n

For example, I know some people who own vacation homes outright and have decided not to carry homeowners insurance. That provides great savings every year \u2026 until a hurricane rips through town and they can\u2019t afford to rebuild their dwelling.<\/p>\n

Meanwhile, you MUST<\/em> carry at least some liability coverage on your car. But many folks go without collision or comprehensive insurance on older vehicles that are paid off and not worth much money. That can be a very sound strategy \u2026 especially if you sock away the difference in premiums.<\/p>\n

My broad recommendation is always trying to balance the value of your assets against the potential risks.<\/p>\n

Just remember that although catastrophes are rare, they DO happen.<\/p>\n

Case in point: Several years ago, a house two doors up from mine burned to the ground!<\/p>\n

Question 2 <\/strong><\/h3>\n

\u201cWhat about life insurance? Do you typically recommend it?\u201d<\/strong><\/p>\n

Again, it depends on your age and personal circumstances.<\/p>\n

I actually resisted getting life insurance for many years.<\/p>\n

However, once my daughter was born I decided to get a simple term policy that would provide enough money for my wife to pay off all our outstanding debt and transition into a \u201clife without Nilus.\u201d<\/p>\n

Given my age and good health when I bought the policy, the annual premium isn\u2019t all that much and the peace of mind it provides my family is worth it.<\/p>\n

A lot of folks also sing the praises of more complicated policies \u2013 such as whole life or variable life.<\/p>\n

I recognize that those types of policies CAN<\/em> benefit certain people, too. But given all the terms, fees, and other variables involved, I recommend doing A LOT of research before you jump into anything beyond basic term life insurance.<\/p>\n

Speaking of research, here\u2019s a topic that a lot of people ask about \u2026<\/p>\n

Question 3 <\/strong><\/h3>\n

\u201cFor car insurance, what\u2019s the difference between full tort and limited tort?\u201d<\/strong><\/p>\n

Some states give you the option to select either \u201cfull tort\u201d or \u201climited tort\u201d policies.<\/p>\n

The simple way to explain the difference \u2026<\/p>\n

Full tort preserves your ability to sue anyone in any situation.<\/p>\n

In contrast, limited tort policies essentially limit your ability to sue for anything above and beyond standard costs \u2013 in other words, nothing for \u201cpain and suffering.\u201d The only exceptions are really severe instances \u2026 such as an accident resulting in death or a drunk driving case.<\/p>\n

From my own shopping experience when I lived in a state that offered buyers both choices, full tort might boost your annual premiums by 10% to 30%.<\/p>\n

That\u2019s because insurance companies really want you to choose limited tort. It saves them headaches and it saves their industry a ton of money.<\/p>\n

Meanwhile, most lawyers emphatically recommend keeping full tort.<\/p>\n

In the end, only you can decide which option makes the most sense. And that answer may also change along with your family\u2019s circumstances.<\/p>\n

Last but not least, here\u2019s an interesting question that someone asked me when I last wrote about shopping around for car insurance (a task I recommend doing regularly and need to perform again myself very soon)\u2026<\/p>\n

Question 4<\/strong><\/h3>\n

\u201cDid anything really surprise you or catch you off guard while you were checking various quotes?\u201d<\/strong><\/p>\n

For starters, the massive pricing discrepancies I found across different carriers for the same coverage basic terms!<\/p>\n

On top of that, my car insurance company offered a very interesting proposal.<\/p>\n

Essentially, they were willing to apply a discount to my quote if I agreed to have a monitoring device installed in my car. This device would feed them information about my driving habits \u2013 including how hard I applied the brakes. I assume it would have also monitored speeds travelled and other data points.<\/p>\n

That wasn\u2019t something I was willing to do. But it certainly gives us a sense of how technology might shape insurance in the future!<\/p>\n

<\/p>\n

To a richer life,<\/p>\n

\"Nilus<\/p>\n

Nilus Mattive<\/p>\n

The post Clouded Insurance Quandaries Revealed<\/a> appeared first on Daily Reckoning<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

This post Clouded Insurance Quandaries Revealed<\/a> appeared first on Daily Reckoning<\/a>.<\/p>\n

Insurance can be tricky. What insurance should you get, or more importantly, skip, and how much can you save if you do? <\/p>\n

The post Clouded Insurance Quandaries Revealed<\/a> appeared first on Daily Reckoning<\/a>.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2731,366,3583,1836,3584,3585,3586,923],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1150078"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1150078"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1150078\/revisions"}],"predecessor-version":[{"id":1150079,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1150078\/revisions\/1150079"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1150078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1150078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1150078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}