The temptation is great: in a time when every peso counts and when the family budget requires certain sacrifices, we always turn to see those payments that, apparently, do not pay at all and that to stop covering them would be a great relief.
Wait!
Before making drastic decisions that can affect your wealth, you should know that having insurance to protect you and your family, in fact, is one of the main recommendations for times of crisis.
“Protecting your loved ones is the best decision since no one is exempt from suffering an accident or being absent.
If you take out insurance, do not see it as an expense but as an investment that will bring you benefits when you need it most ”, advises the National Commission for the Protection and Defense of
Users of Financial Services
(Condusef) through the article “Financial plan for emergencies”, published in the July 2020 edition of their magazine
Protect your money
.
But if the cut is unavoidable, let's see what room for maneuver you have
in the most important insurance at the moment:
Medical insurance
.
We talk about one of the few good things that the pandemic will leave behind: recognizing the importance of protecting the health of our family.
A medical insurance never gets in the way (and less now), so if you already have one, the recommendation is not to try to cancel it and rather take advantage of the time you have coverage left.
If you are about to renew and economic uncertainty prompts you not to rehire, these are some of the factors that you could modify to pay less and continue with good medical coverage that supports yours:
Hospital level
: the line that most influences the cost of your policy.
Choosing hospitals with a smaller range of equipment will give you financial relief while still being protected.
The deductible
: If you don't want to lower the hospital level, one option is to increase the deductible;
although of course you must analyze the extra expense that you will make in case of requiring a medical service.
The sum insured
.
Applying a cut in this area can also be a good idea to pay less.
Check how the amount of your policy moves when you reduce the sum insured to make a good decision.
Ask your insurance company about other concepts, such as coinsurance and the medical tab, that allow you to make the best contract for times of crisis.
Car insurance.
In times of crisis, it is worthwhile to be protected when driving, but it is also possible that you do not need the "Comprehensive Coverage Plus".
What we mean is that, if necessary, you can exclude certain coverages, which will help you pay less.
The important thing is that before making this decision, analyze the consequences of eliminating these coverages and be sure that they are not so necessary at this time.
Another option is to ask your insurer about programs or promotions, such as discounts for taking a friend to hire with them, policy payments based on the kilometers traveled, options to split the annual premium or discounts for having good driving habits.
Educational insurance.
Goodbye to children's school insurance?
It is perhaps the most difficult decision in relation to the insurance issue.
Before making a decision, consider that, after the basic needs, the education of our children is the first item to protect tooth and nail.
Yes, the outlook is complicated (the United Nations Development Program estimated a few weeks ago that
1.4 million Mexican students would drop out of their studies due to the pandemic), but if you have the fortune to ensure, even with a little effort, the academic future of your children, do not hesitate to do so.
Think that it is the most important inheritance that you will leave them, that will serve as motivation.
If at the end of the day you must make a cut of this type, check the options in the market again and see if there is any company that offers you the same for less.
Comparing can be the key to staying protected academically, but don't forget to confirm that seniority is not a determining factor and analyze all the penalties and possible losses.
And if these happen, don't feel bad;
Better set yourself the goal that it will be the first area in which you will recover.
Mortgage credit
insurance
.
In fact, many people right now take advantage of (and appreciate) the benefits of having been prevented with this insurance that protects them with some monthly payments in case of job loss.
In times of economic uncertainty, this unfortunate situation can happen without warning.
If you find yourself in trouble paying your mortgage,
Ask your bank or institution if your credit includes any similar insurance.
Maybe you don't even know that you have this support.
Tip: if you did not use Infonavit to acquire your house, find out if you have money in your fund, it is possible that there you will have a backup for these complicated moments.
When asked if there is any insurance that helps people face a financial emergency, Edith Esquivel, an expert columnist in finance, responds to the aforementioned edition of
Protect your Money
: “Your personal circumstances will dictate what insurance you require.
For example, if you have a good amount saved, it does not make sense to take out unemployment insurance, but if you are just starting to save, it is convenient to have medical insurance and vehicle insurance for third party damage.
If you have financial dependents, life insurance is also a good idea ”.
Evaluate your possibilities and keep in mind that it is always better to be protected ... Although it is clear that if making cuts is inevitable, you have to make decisions.
We suggest you establish priorities: the protection of people should always be first, then you can evaluate the protection of the goods (from the most expensive to the cheapest) and do not be afraid to evaluate certain losses in specific cases.
You and your family know better than anyone what you need most.
If they analyze well and do not make hasty decisions, they will surely choose the best scheme to have the greatest possible protection.
It is always a good time to learn and create new alternatives to safeguard the personal and family economy, if you want to learn more about personal finance and other related topics you can visit the
Citibanamex Financial Education
site
.