In the not too distant past, it was common to have multiple insurance policies with different companies – one for your car, one for your home, one for your health, and one for your boat – well, you get the idea. Usually, this meant having numerous distinct insurance companies, each with their own policies, discounts, representatives, deductibles, and monthly bills. Needless to say, even the savviest of consumers could get overwhelmed.
In recent years insurance companies have begun offering ‘bundles’. You’ve probably seen advertisements on television urging you to bundle your internet, cable, and landline with one company, with the promise that you’re not only simplifying your life, but also saving money. Does the same hold true for insurance? Well, that depends.
It’s true that insurance bundles work to simplify your life. By bundling your insurance with a single company, you only have a single monthly bill, a single deductible, and a single representative. Insurance companies frequently offer significant discounts to consumers who choose to bundle their insurance.
Often choosing an insurance bundle can end up costing consumers money. Some insurance bundles can end up providing less coverage than individual policies. It’s also possible to miss out on discounts that aren’t offered with the bundle.
When deciding on an insurance bundle, it’s important to weigh the pros and cons against your individual needs. Many consumers and insurance companies receive a mutual benefit through bundles. It is important to investigate the bundle’s coverage thoroughly, to ensure that you’re not sacrificing coverage for simplicity.
We assist in determining the best way for each client to select the appropriate policies.
Raskob Kambourian Financial Advisors is an independent, fee-only comprehensive financial advisory firm registered with the Securities and Exchange Commission. We offer expertise, competitive pricing, and personalized financial services to meet your “Life Planning” needs.