I feel there is no reason to over-pay, or “line the pocket of the insurance companies when I can “line yours”.

For example would it be “worth” spending an additional $1500 a year to reduce your deductible from $5000 annually to $2500 annually? The answer has to be NO! Even though a $5000 deductible seems high … if we are going to add $1500 to our yearly premium for a $2500 deductible, isn’t our REAL deductible now $2500 plus the $1500 or $4000.

There is a strong possibility (we hope) that you never have to spend much of your $5000 deductible in the first place … so why spend “a sure” additional $1500 for a $2500 deductible? In addition to do it every year, would add up to a lot of wasted dollars. Since the deductible rolls over yearly, one can spend $1500 extra yearly, and after 10 years that would be $15,000 … to save $2500 in the very worst case scenario in a given year. If you take the $15,000 in savings and divide it by the premium … it would add up to years of insurance that you have “pocketed” … and would be “free” versus the person who over-paid!

Going with the higher deductible “makes the most sense” when we are middle age or toward the higher insurance age range. When we are younger the spread between deductibles is low enough that a lower deductible makes sense.

This applies to families as well. I insure that my clients do not over-pay. The key is finding the balance between deductible and premium, and LINING YOUR POCKET, AND NOT THE INSURANCE COMPANIES!

I urge you to find a good insurance broker that has a formula for insuring you do not OVER-PAY!