This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Monday, March 10, 2008

Insurance: A Good Lesson From My Life

Posted By Paul
(this was a posting I wrote right before I got laid off and forgot to post it during all of the craziness)

Here is a story from my life about insurance specifically and finances in general.

Just last night my wife and I were talking about how much money we'd be able to save this month, and as part of that we wanted to see which bills were left to pay this month. Going through our bills we came across a bill for a liability umbrella policy. The document essentially said: "This policy is about to expire on Feb. 11, 2008. If you send us the $100 dollars by the date listed the policy will remain active for another year."

Both my wife and I were kind of puzzled simply because we didn't know what this policy was for. The fact that the annual renewal date for the policy was February 11 helped to jog our memories since our wedding anniversary is February 28. We remembered that when my wife and I got married the venue required us take out an additional policy to cover any liabilities related to the reception (I guess in case something happened like someone got drunk at our party, wrecked their car and decided to sue us and the venue).

We got the policy in place, and our best guess is that we've just been paying for the policy ever since.

I'm guessing that since the bill comes up once a year and is part of our homeowner policy that either my wife or I have been automatically paying the bill to keep a policy active that we haven't really needed for something like 4 years. The fact that the renewal notice arrives during the busy holidays probably also encouraged our mistake in that we probably didn't notice the oddity in all the holiday craziness.

So essentially my wife and I have been paying $100 a year to insure a wedding that took place 4 years ago.

Just goes to show you to not get too complacent about automatically paying your bills. Were it not for us happening to notice this bill we could have possibly been still paying this bill 50 years from now!


Matt said...

Oh, that is SO painful! It reminds me that I need to go through our insurance again, also. It always surprises me how often I can find little savings just by doing a periodic review.

Canada life insurance said...

Paul you should be happy that you are aware of importance to read through your bills ,insurance policies and agreements. During my career, I have met hundreds of people who never did that and I can assure you that worse cases could occur that your 100 dollars one. It is nothing worse than a client who is blaming us for cheating. That's why I've tried to display our terms and policies at all possible places you would search for Life insurance in Toronto .