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Reasons Not to Buy Long-Term Care Insurance

July 19, 2021 By MelissaB Leave a Comment

My uncle and aunt, who are in their 80s, recently moved to a long-term care facility. The cost for two people is expensive, but they’re paying a reasonable $3,000 a month thanks to a long-term care policy my uncle bought years ago. My husband and I aren’t yet at the age where we need to buy such a policy, but we did start to research them. However, there are several reasons why we’ve decided not to buy long-term care insurance.

Why We’re Not Going to Buy Long-Term Care Insurance

We’re not buying long-term care insurance because of these drawbacks:

Premium Prices Aren’t Fixed

Rising premium costs are one of the biggest issues for us. You may buy a long-term care policy with an affordable monthly payment when you’re in your 50s. However, that payment is not fixed; over time the monthly payment will continue to increase, eventually outpricing some people’s budgets. If you can no longer afford your monthly premium before you need the care, you have lost all of the money you previously invested into long-term care insurance.

Insurance Companies Sometimes Won’t Pay

Long-term care insurance policies often have many hoops you must jump through before they will pay. Others don’t pay for the first 90 days. Or they will only cover one to three years in a long-term care facility. If you need care for a longer duration, your policy won’t cover that time.

May Never Need the Policy

After paying decade after decade for a long-term care policy, you may never need it. You may remain in good health and able to take care of yourself, or you may die suddenly in a car accident or from a heart attack. Think of the many other ways that money could have been used.

I know, I know, not needing the policy is a risk for any insurance coverage, and we still purchase them. However, consider the tens of thousands of dollars that you’ll pay for a policy you may not need. Buying such a policy often doesn’t make financial sense.

What We’re Doing Instead

Reasons Not to Get Long-Term Care Insurance — Photo by Olga Kononenko on Unsplash

We used a calculator to determine how much long-term care insurance would cost for us to purchase in our early 50s. Instead of investing in long-term care insurance, we’re investing that money in our retirement accounts (in addition to what we’re already regularly investing for retirement) so it can grow thanks to compound interest. The plan is to make our retirement fund as large as possible so we won’t need long-term care insurance. We’ll also be able to sell our house and have it for equity.

In this sense, we’re planning to self-insure so we can get quality care if needed without paying for a long-term care insurance policy for years.

Final Thoughts

Some people swear by long-term care insurance. The policy is doing its job for my aunt and uncle. However, after my husband and I looked at the price and compared it with all of the potential policy exclusions, we’ve decided there are several reasons not to buy long-term care insurance. Instead, we will be working to save and invest enough money to self-insure.

Read More

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Car insurance hacks every mom should know

June 8, 2021 By Susan Paige Leave a Comment

Life hacks have become very valuable, helping us to do everything from fixing everyday items to getting gum out of hair. However, these hacks aren’t limited to household items. You can use hacks to get lower insurance premiums as well, and this post will show you how.

These hacks are invaluable for moms because their cars tend to experience more abuse. We’ll also share some hacks for keeping your car in good physical condition at the end of this article. Be sure to read till the end.

Shopping around gives you more leverage

Reviewing policies from multiple insurers is an excellent idea for many reasons. For instance, if you’re shopping for car insurance Georgia, checking various providers can help you discover better rates, more discounts, or even lower deductibles. Even if you don’t buy the policy, you can use the information to leverage a better deal with your insurance provider.

When you finally purchase some insurance, check industry rates regularly, say once in six months. Insurance providers are highly competitive, and they are always adjusting their rates. Plus, you may be eligible for discounts on multi-car insurance and safe driving. You’ll never know until you look around.

Always document everything

Being a mom is one of the most challenging jobs on the planet. You almost need eyes in the back of your head because of all the things that need your attention. You need to keep an eye on your kids, what they eat, what they do, and even how they play.

It’s easy to get distracted or forgetful, which is why you need to document things as they happen to your car. If you feel a slight bump while driving, it’s best to stop the car and check it out. Another driver may have given you a fender bender that’s difficult to explain to the insurance company after the fact. Detailed records can help you claim your policy much faster. Remember that a Tampa car accident lawyer(or one nearer where you live) is always on hand to help. They will support you in gathering the evidence, and putting forward your case to get any compensation you deserve.

Pay attention to your credit score

You probably already know that your credit score affects everything from interest rates to credit limits. But your credit score can affect your car insurance premiums as well. Like other organizations, your insurer will use it to determine your ability to pay premiums and care for your car. In short, the better your credit score, the lower your premiums.

Having kids can give way to unexpected expenses that may lead to maxing out your credit card. However, try to avoid this if you can because it’ll only lead to more fees for you in the long run. You can try buying items in bulk to get discounts and save some money.

The ‘soccer’ mom cliche isn’t a bad thing

The cliche here refers to moms that own large minivans to carpool and get their kids to soccer practise. Until recently, minivans weren’t aesthetic at all. They were large vehicles that held function over form. But now, manufacturers like Toyota and Honda are switching the game.

But regardless of the aesthetics, a minivan can earn you lower insurance premiums. IF it’s in a low insurance group – costs less to maintain, smaller engine – you’ll get better rates. The insurance company will simply match your repair costs with your premiums. So drive a minivan, it’ll save you some cash.

Consider going back to driving school

Taking more driving courses is an excellent way to lower your premiums. Insurance companies charge you premiums based on how likely they think you are to get in an accident. If you can prove your skill by taking additional courses, you’ll be an expert driver and pay lower premiums.

These courses can also teach you practical skills like driving in all types of weather, driving at night, and even driving on motorways. Plus, you’ll learn how to stay focused while getting unavoidably distracted, which is something all moms need!

Use secret rewards

Insurance companies offer discounts, promos and other favorable offers to draw in new customers. But you can also use them as an existing customer. One of these is the cash-back offer. When you purchase on some websites, your insurer may offer promotions for your spending.

Another angle is to look for coupons. These are typically advertised as part of the insurer’s campaign. They offer discount codes with specific policy purchases. While challenging to find, these coupons can be advantageous for you, especially if you’re trying to save some money. Your policy provider won’t make it easy for you. But if you look well, you’ll find them.

Car hacks for everyday use

But now, you must have a decent understanding of how to hack your car insurance for better rates. You can visit https://www.moneyexpert.com/car-insurance/ to learn more about car insurance in general.

Now, we’re going to switch pace and talk about hacks you can use to take care of your car. Depending on your policy, insurance only covers damages from collisions, accidents and similar occurrences. It doesn’t do anything for minor damages that occur from regular use. But these hacks can undoubtedly help you.

Use nail polish to repair chips and scratches

Scratches on a car’s paint job can be infuriating. You don’t want to take it into the shop for fear of an exorbitant fee. You may not even have the time! Instead of stressing about this minor ding, use nail polish. Because there are so many shades, you can easily find one that matches your car color.

Use tinted plastic sheets for shade

We have pilots to thank for this hack. They use tinted plastic to block out glare from the sun while flying – we all know how dangerous those can be. You can do the same too. All you need is to identify the location of the glare and stick some plastic. It’s much more effective than the pull-down shade that only covers a small part of the windshield.

Use a plunger to fix dents

This hack is funny because mechanics use the same technique to fix dents. Instead of paying someone to do it, grab a plunger and do it yourself! The technique works best for small dents along relatively flat surfaces, like the side of your car. If the plunger can’t cover the whole dent, or if it’s in a curved area, you’ll need to visit the shop.

How to Find Affordable Tires, Batteries, and Insurance

May 27, 2021 By Justin Weinger Leave a Comment

A car is a major investment, not just in the money you pay upfront, but also in the money it takes to maintain it. Tire quality, battery longevity, and insurance coverage can all take a major bite out of your budget. Fortunately, there are ways to lower these costs without sacrificing quality.

From discounts on tire maintenance to the ins and outs of insurance rates, here are some of the ways to get the least expensive offerings for your automotive needs.

The Potential Savings of Auto Insurance

There are many ways for consumers to lower their auto insurance bills, and one of the most obvious ways involves adjusting the policy to have only the offerings most necessary for a specific situation.

There are two main auto insurance types that protect your vehicle in the event of an accident: collision and comprehensive. Collision covers you in the event of an accident involving your car and another vehicle or object, while comprehensive covers non-collision damages. But what is the cost difference between collision and comprehensive auto insurance?

If you have both collision and comprehensive auto insurance, then you have full coverage. As a general rule, if you don’t fully own your car, you will be required to get collision or comprehensive car insurance.

Collision insurance handles damages from hitting a parking post, bench, tree, curb, or vehicle, regardless of who is at fault. It is often cheaper than other options, but once your car’s value surpasses what the insurance will pay out in the event of an accident, you should probably drop it.

Comprehensive auto insurance covers any damage to the vehicle that isn’t caused by a collision, such as accidents involving animals running into the road, property damages, falling trees, floods, fires, and projectiles. It often covers theft and vandalism as well.

However, comprehensive insurance doesn’t cover regular wear and tear or the value of the car’s contents. In most cases, collision and comprehensive car insurance are bundled into one offering by an insurance company, but often you can choose to purchase only one or the other to save on money.

Opting for comprehensive coverage alone is, on average, under $200 a year, whereas choosing collision alone bumps average rates up to around $360.

Liability insurance, which is for covering the other driver in an accident you cause but not yourself, often is more expensive than both of the former together. Full coverage, including liability, often costs over $1,000 per year. To see exact numbers for your situation, you should request a variety of quotes from different insurers.

The auto laws in your state may also dictate which insurance you are required to have, and often liability is required. Understanding what different types of coverage mean will allow you to choose the best option for you.

Many choose to keep the necessary liability coverage and then have to decide between comprehensive, collision, or neither.

However, if your car is of a high enough value, it may be more cost effective to opt for full coverage so you don’t have to recoup the loss of the whole car in the event of an accident.

The Cost of Tires

Tires can be an expensive investment, ranging from $50 for cheaply made ones to $1,000 for specialty premium ones. Most people will buy tires in the $100–$500 range in addition to the mounting and balancing costs. Most auto shops will charge a standard fee for installing tires that ranges from $15 to $45.

Fortunately, you can save a bundle on the cost of tires by shopping in April or October, which are the two months when tires are most likely to go on sale (in preparation for winter roads and summer trips). Shopping online or at warehouse stores can also give you access to much more affordable tires.

In addition, many tire manufacturers offer rebates throughout the year, so look into what your tire manufacturer may be offering. Having an older car may impact the cost of your tires, too.

Depending on the quality of your tires, you should inspect them after five or six years and absolutely replace them after 10. The amount you drive and the quality of the tires will affect how long they last, however, so be sure to get them checked regularly.

Another thing that affects the cost of tires is air pressure. Properly inflated tires save up to 11 cents on the gallon, and improperly inflated tires will not only impact your mileage but also weaken your tires. This will force drivers of low-pressure tires to need to replace them earlier.

There are plenty of ways to save on air refills, however. In 2013, Nissan implemented a new feature on the 2013 Nissan Altima called the Easy-Fill Tire Alert. This feature warns drivers when their tires need to be refilled. Technological advancements like this can help the savvy consumer save more over the years.

The Expense of Car Batteries

All car batteries have a limited lifespan and will eventually lose their charge. Although it takes only a tiny amount of gas usage to charge the battery, maintaining it properly can take a lot of horsepower. This, combined with the fact that gas prices have risen astronomically since 1979, means that it’s important for car owners to improve battery life.

Often, you can get cheap batteries at local stores like Walmart and Costco, but it can also be dangerous to opt for the cheapest option, as they can often corrode or wear out more quickly. The easiest way to have a cheap battery is to maintain and care for your current one so it costs less to replace.

Turn off your lights when the engine is off, and make sure that nothing drawing on the electrical power is running when you exit your car.

You should also try to keep your battery fairly cool. While cold weather makes it harder to start your engine, the real reason why batteries struggle is due to the wear and tear of heat. Heat increases water evaporation, sapping the battery cells. This then results in the car struggling to start once cold weather arrives.

To combat this, park your car in the shade or in a garage whenever possible and try to keep your engine from overheating. Taking care of your car battery can help you both save money and help the environment.

These are just a few of the ways to lower the cost of auto insurance, tires, and batteries. Consider your vehicle’s needs and compare offerings to get the best possible deals.

About The Author: Deborah Goldberg is an insurance expert who writes and researches for the auto insurance comparison site, AutoInsurance.org.