Nearly Half of Canadians Didn’t Save a Penny in 2022-2023 – Check How Insurance Hacks Can Turn the Tide

Nearly Half of Canadians Didn’t Save a Penny in 2022-2023 – Check How Insurance Hacks Can Turn the Tide

With the country’s cost of living increasing, it is surprising to find that 44% of Canadians saved absolutely nothing over the past year. But you are not alone in such tough times. Most of us face various financial issues; yet, what if I told you that one often-overlooked avenue could be the determining factor in saving for the future? Well, welcome to the world of insurance—yes, you read that right!

The best Insurance company believes that understanding your insurance policy can be the difference between success and failure in your financial strategy. So how might essential insurance knowledge and few Insurance hacks save you money and improve your financial health? Let’s take a look at this blog.

The Significance of Understanding Your Insurance Policy

To many, insurance is an unwanted added expense, a necessary evil; so much so that many of us forget it exists until it’s time to pay the bill. What if that could be turned around? Understanding your policy could be the very first step in unlocking savings you didn’t even know were possible.

Why Does It Matter?

Regarding handling finances, insurance is not just a form of protection, but also a means to augment financial security. Be it home insurance or car coverage, such policies will save you from incurring significant out-of-pocket expenses if something goes wrong. All the same, these insurances will only benefit you if you know how to **tackle your insurance plans**.

If you are relatively new to the insurance game or simply want to reinforce your knowledge, here are some beginner tips on insurance that will clear the air for you and help you understand insurance better:

1. Read the Fine Print: Read your policy first and foremost. It is a boring task, but reading through your terms, coverage limits, and exclusions might save you from unwanted surprises later.
2. Compare Plans: Do not close your eyes at the first policy you find. Utilize online resources to compare different plans and their prices. Look for the cheapest insurance quotes to give you enough coverage.
3. Ask Questions: If something does not make sense, you should ask your agent. With all of that insurance jargon, it can be really confusing, but clarification on your policy is pretty important to make a smart decision.
4. Annual Review: Your insurance needs evolve. Create a habit of reviewing your policies at least once per year. You may need more coverage or services you no longer wish to pay for.

Insurance Knowledge

Many people are not aware of the fact that how many things can be covered under insurance. Therefore, here are a few takeaways that will help you save some money:

1. Bundling Policies: Most of the insurance companies will provide you with a bundling discount in case you purchase more than one policy from them. For example, home and auto insurance. It really will help you save a lot.
2. Consciousness of Deductibles: Generally, the higher the deductible is, the lesser the premium is. One should, however, understand that it also means he or she has to spend too little money and stay within his or her financial comfort level. The point is, if a higher out-of-pocket expense is affordable, when the claim comes into the picture, one may save more money over time by paying higher deductibles.
3. Safe Practice Discounts: Most insurance firms always offer discounts on safe driving, good safety in home security systems, etc. Just get to know from your agent all discounts you are eligible for.
4. Your Credit Score: Believe it or not, your credit score can affect your insurance prices. A good credit score means cheaper prices, but a poor credit score may result in expensive insurance premiums.

Understanding Insurance Plans

Once you get a basic idea of your insurance, it is now time to   understand the available plans. Here is how you will do this.

1. Assess Your Needs: Understand where you are at. Do you need full coverage on your liability? Are you properly covered in case of home damage? Understanding your needs will guide your search.
2. Utilize Web-based Calculators: Many web-based calculators and tools will enable you to determine the extent of coverage you require. You also can get free quotes instantly for various policies by using them.
3. Consult Experts: You should not hesitate to approach an insurance broker. They will guide you through your available choices and give you advice based on your financial situation and what you might want to achieve in the future.

The Financial Payoffs of Knowledge about Your Insurance

Knowing what’s in your policy can keep you out of trouble-and pay directly into your pocket. Here’s how:

• Eliminating Redundant Coverage: Many people carry unnecessary and redundant coverage across several policies. Elimination of that redundancy could save money.
• Reduction of Financial Risk: A good insurance plan reduces your exposure to high one-time expenses that may hurt your savings plan.
• Enhancement of Financial Planning: When you understand your insurance, you will be in a position to assimilate it into your general plan regarding funds, enabling you to maximize resource use.

Also Read: Understand Your Insurance Policy – A Beginners Guide

Conclusion

That’s where the shocking statistic sits: 44% of Canadians saved $0 from 2022 to 2023. Many people are experiencing this issue, but you have the power to alter your current course. You can utilise your insurance policies and become more knowledgeable about them to unlock savings that truly make a difference.

As such, at Lion Shield Financial, we think that essential insurance know-how forms the base of your wealth-building health. But by following some of the tips shared in the blog and being proactive with the management of your insurance policies, you’re not only being protective but paving the way for a more secure financial future.

Are you ready to move on to the next step? Discover your options and become a step closer to securing financial stability today. You may be looking for the savings plan of which you never knew you needed.