BUSN380 Week 6 Threaded Discussion – Insurance Trade-Offs & Lowering Insurance Costs &am

BUSN380 Week 6 Threaded Discussion – Insurance Trade-Offs & Lowering Insurance Costs &am

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Risks What insurance coverages do you currently carry and pay for? As a percentage of your estimated monthly disposable income (which you identified in Week 2), what proportion do these coverages represent? Are there areas where you feel you are under-insured? Over- insured?? My first experience with Life insurance was a USD$46,155 policy I bought from my father in 2001 when he was a Guardian Life Agent back in Trinidad. I did it only because he needed the business, and I felt guilty that I was living abroad with no spouse or offspring to take care of the funeral and shipping (of my remains back home) expenses if I should expire before my parents did. Yes! That is exactly how dear old Dad sold me on Life Insurance! The suggestion came inside of a nice postcard …there is nothing like an insurance agent I tell you! The policy was linked to an asset fund where the Company invested my premiums, supposedly to provide retirement savings. However, for me the real selling point of the policy were the possible loans and the cash surrender value. I made quarterly payments of USD $234 against the yearly premium of USD $935 (most months my agent covered until I could pay him back). My monthly income back then was approximately $3750 so at $58 it cost me less than 2% of my income. Eventually after being laid off in 2006 I ran out of discretionary funds and cashed in! During the five years I held it I was able to borrow $628 and cashed the policy in 2008 for the value of one year’s premium. I decided to get renters insurance in 2000, after I was the victim of a burglary that cost me about $8000 in losses. Currently I am maintaining the Balboa policy that promises $30,000 worth of protection for my valuables for less than a dollar a day! Sold! The annual premium is $308, which is .76% of my yearly income. $25.66 is deducted from my checking account and while I can barely afford the payment these days, I will continue to find a way to pay it for as long as I am renting. I learned the valuable “just in case” lesson and no matter what, I was not going to be without coverage for my property or my personal safety while I was renting. As chance would have it in 2008 after paying eight years of premiums ($2156), I lost some valuable items in a fire while away at a camping retreat. Upon my return home, it occurred to me that I had seen something in my policy about loss coverage away from home. Lo and behold, in “Section I – Coverages” of my policy there it was, stated quite clearly, Balboa covered personal property owned or used by any insured while it is ANYWHERE IN THE WORLD. Ah, Joy! After a relatively swift and painless claims process, I collected a check for $3000 with no increase in my premiums…an actual 39% gain! What trade-offs are involved in determining the amount of insurance coverage you
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BUSN380 Week 6 Threaded Discussion – Insurance Trade-Offs & Lowering Insurance Costs &am

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