Insurance is an important thing to have as it gives you a peace of mind and security to what you insured. In most countries, the governments made it compulsory for their citizens to insure their assets. Moreover, health insurance is a necessity in today’s life where you don’t know when you might get a medical emergency. It is always advisable to pay your insurance premiums on time as you will have to pay more in future. If you do not pay them on time, it will cost the insurance companies some money for sending reminders and they might hesitate to review your policy thinking that you are only making them loose money. Not only that, it might also create a bad credit history.
Choosing the right policy:
Always think carefully before choosing the suitable policy for you. Make sure that the monthly premium amount is manageable for you and will not make you live too conservatively. However, if you are missing a lot of features by not paying a little extra, then you can go for it. Do not fall for the insurance companies’ bragging about the so-many features of a policy. If those features are of less worth to you, then better do not take them. Also, select a policy that is liberal if you miss out the payment once or twice.
As soon as you get your monthly income, keep aside the money required to pay the premium and do not count it as a part of your salary. Control the unnecessary expenses as less money in your bank account will make you feel more uncomfortable while you pay the premiums. Whenever you feel like buying a new gadget, do not get carried away and remind yourself of the expenditure ahead. Also, avoid a lavish lifestyle when you cannot afford it.
Save a fixed sum of money monthly and do not use it till a targeted period. This will help you a lot in case you suddenly lose your job or fall sick. You can peacefully sleep with a guarantee that you have some cushion amount which makes the payment of premiums very easy.
Sometimes, you simply do not pay the premium out of forgetfulness. You might be able to justify yourself, but the insurers do not understand it and you still need to pay the price. So, it is better, if possible, to pay the premiums of multiple periods at a single time whenever you have sufficient money in your hand.
Avoid borrowing money unless it is extremely necessary. Control yourself from swiping your credit card as too much of debt will mess up your finances which will result in failure to pay the premium on time. If you already have debts, give all preference to clear them to clear them first by cutting down your expenses drastically.
Automatic money Transfer:
Now, almost all insurance companies offer an option to pay electronically. You can pay multiple installments and also save some money which you will have to pay as monthly installments, if you pay through your bank account. This can also save you a small amount of around $50 every year. This will also help you if you have a busy routine every day.
So, keeping all these in mind, always pay your insurance premium in time to keep your credit scores up and live a tension-free life.
Author Bio: Hi, I am Karen Ford from Edinburgh. I am an insurance agent who loves to write on different financial topics. Presently, I am doing research to write on PPI Claims.