Speaker 1: Episode nine six is episode because we lost the audio
Speaker 1: What insurances you need to buy now? Welcome to the
Speaker 1: Frugal Friends podcast, where you'll learn to save money, embrace
Speaker 1: simplicity rights, and live with your life. Here your host
Speaker 1: Jen and Jill. Day one, already fighting over the microphone.
Speaker 1: Welcome to the Frugal Friends Podcast. My name is Jen,
Speaker 1: my name is Jill. And by the end of this show,
Speaker 1: my back is gonna hurt so bad because Jill and
Speaker 1: I are together in the same room sharing a small microphone.
Speaker 1: That's right, so we keep just leaning into this microphone.
Speaker 1: This is going to be an editing nightmare for Eric. Congrats,
Speaker 1: but he's been doing this for seven episodes, so he's
Speaker 1: pretty good at it. I guess he's used to our
Speaker 1: sure as Sorry about my coffee breath, Jen, it's okay.
Speaker 1: Today we are talking about insurances, the ones you need
Speaker 1: and the ones you don't need, and we're going to
Speaker 1: talk about why you need the ones you need and
Speaker 1: the reasons you could be offered the ones you don't need.
Speaker 1: And uh so today is going to be enlightening, I hope.
Speaker 1: And yeah, and we're sharing a mike, so if you
Speaker 1: hear us bump cheeks. Uh don't get that's see and
Speaker 1: and now I'm saying things out loud that sound better
Speaker 1: in my head. Anyways, let's hear from our sponsors. I'm
Speaker 1: gonna stop talking. Today's episode has also brought to you
Speaker 1: by Leap Day. February twenty nine, can only sponsor the
Speaker 1: show every four years, so it wants you to know
Speaker 1: it for more than just the romantic comedy where Amy
Speaker 1: Adams doesn't recognize her self worth. February twenty nine is
Speaker 1: the birthday of icons such as Tony Robbins and jaw Rule.
Speaker 1: It's also the day we celebrate our dear friend and
Speaker 1: longtime listener Jocelyn's freedom from student me. Jocelyn, We're so
Speaker 1: sad we can't be at your actual party tomorrow, but
Speaker 1: we will be celebrating from Florida with all the pizzas
Speaker 1: in your honor, and maybe we'll put Pepperonis on it.
Speaker 1: I don't know. Let's we'll get crazy in your honor, Jocelyn. Yes,
Speaker 1: so congratulations, thanks for listening, and uh, we love you
Speaker 1: such a good sponsor. Yes, I every four years. I
Speaker 1: look forward to it. Yes, job Rule's birthday. How could
Speaker 1: you not I throw a party let's get into insurance,
Speaker 1: the nitty gritty of this fun stuff. I know this
Speaker 1: is going to be our least listened to episode, I'm
Speaker 1: sure of it. But insurance is such an important topic
Speaker 1: because it is literally the difference. It can be the
Speaker 1: difference between a big event being a financial like inconvenience
Speaker 1: or bankruptcy. It is that important and so while we
Speaker 1: don't want to pay attention to it too much, we
Speaker 1: want to learn about it, have our insurances set up,
Speaker 1: and then go back to not thinking about them. But
Speaker 1: you do have to think about them for the amount
Speaker 1: of time it takes to actually get them. So our
Speaker 1: first article is going to go through what kind of
Speaker 1: what kinds of insurances you really need? And it is
Speaker 1: from dummies dot com because that's the first one that
Speaker 1: came up when I searched, and I, you know, I
Speaker 1: don't like the derogatory term, but they do have some
Speaker 1: good information. That's funny because I was excited when oh, yes,
Speaker 1: this is from dummies. That's perfect that it'll be so
Speaker 1: great to help to help with breaking down insurances. Man,
Speaker 1: you and Amy Adams really need to work on the
Speaker 1: self worth it. I'm not my word drama straight dumb piece.
Speaker 1: But when it ms insurance, yeah, I'm going to meet
Speaker 1: articles from dummies dot com. So the first one as
Speaker 1: far as insurances that you need, not that Jen and
Speaker 1: I fully agree with this one, but but we'll get
Speaker 1: into it. So the first one listed as disability insurance,
Speaker 1: and so this would be an insurance that you would
Speaker 1: pay into regularly in the event that you suffered a
Speaker 1: disability and needed help paying your bills. Right, So this
Speaker 1: is and the article makes an interesting point here that
Speaker 1: it is more likely for any one person to become
Speaker 1: disabled than to die. It sounds really morbid, but that's
Speaker 1: what we're talking about with insurance, right, We're talking worst
Speaker 1: case scenarios and making sure that we're covered for that.
Speaker 1: So it's saying that you do have a higher likelihood
Speaker 1: of becoming disabled at some point in your life, and
Speaker 1: so having some sort of backup to be able to
Speaker 1: cover the expenses. We would argue, what about an emergency fund.
Speaker 1: I mean, you never know how along you'd be disabled for,
Speaker 1: but having an emergency fund for things like this that
Speaker 1: could cover you for up to six months while you
Speaker 1: figure out another route in life could be an alternative
Speaker 1: to this one. And there is so definitely don't like
Speaker 1: the idea of short term disability, which is only up
Speaker 1: to six months. There is long term which kicks in
Speaker 1: at six months and continues to sixty five. But for
Speaker 1: that even more, I like figuring out a way to
Speaker 1: earn passive income. So what's something that you can assemble
Speaker 1: and sell that can be doing quasi passive making you
Speaker 1: income quasi passively and that just means that you can
Speaker 1: sell it. You don't have to be actively working to
Speaker 1: make money. So that's where I'm at, but not everybody
Speaker 1: is of that mindset. So if you are are worried
Speaker 1: about that, that something that stresses you out and you
Speaker 1: don't want to start something that can make passive income,
Speaker 1: long term insurance is definitely something that you want to
Speaker 1: take a look at. Our next one is life insurance,
Speaker 1: and this is something that young people don't think about,
Speaker 1: but it's really more affordable the younger you are. And
Speaker 1: life insurance is essentially just making sure that if you
Speaker 1: die in the next twenty thirty years that your loved
Speaker 1: ones are taking care of that they are not burdened
Speaker 1: by um having to take care of the kids, earn income,
Speaker 1: pay for your funeral, all that stuff. Most people recommend
Speaker 1: a twenty year term life insurance. Um, there is whole life,
Speaker 1: but we'll get into that later. But term life really
Speaker 1: is super affordable, especially if you're healthy, and it can
Speaker 1: really make the difference. It's ours is for Travis is
Speaker 1: eighteen bucks a month and we don't notice it, but
Speaker 1: I know that if he is, you know, something happens
Speaker 1: to him, I won't have to worry about. You know,
Speaker 1: I can pay off the house, I can pay for
Speaker 1: his bills and then just have one thing taken off
Speaker 1: my plate while I grieve. So life insurance super important
Speaker 1: to have. The younger you are and the healthier you aren't,
Speaker 1: the cheaper it's going to be. So don't wait on it.
Speaker 1: I think that's an important point that you're making, because
Speaker 1: I think for a lot of people, they don't think
Speaker 1: about life insurance until they're in their fifties sixties, starting
Speaker 1: to approach retirement age. But this really is something that
Speaker 1: we should be considering in our twenties, thirties, forties for
Speaker 1: the very reason that you're describing, Jen, and especially for
Speaker 1: folks who who are dependent on one another. That's what
Speaker 1: it provides is the money for lost income for funeral expenses. Uh,
Speaker 1: you name it. It's a really important thing to consider.
Speaker 1: And also I think there's an unawareness of how inexpensive
Speaker 1: it can be. You just listed that off eighteen dollars
Speaker 1: a month for Travis. I think that there's just a
Speaker 1: lack of knowledge about that. So definitely look into this.
Speaker 1: It's something that can again it's worst case scenario, but
Speaker 1: really important for us to be considering having, even in
Speaker 1: our younger years. So the next thing on the list
Speaker 1: is health insurance. I mean, we're not going through how
Speaker 1: to get the cheapest versions of insurance. That's that's another episode,
Speaker 1: but it is something that we need to be having
Speaker 1: across the board. If bearing the burden of paying for
Speaker 1: medical costs out of pocket, uh, that will lead to
Speaker 1: financial ruin. So having some sort of health insurance that
Speaker 1: would be able to cover the costs. And this can
Speaker 1: even be a worst case scenario approach with insurance. You know,
Speaker 1: you can get an insurance that has higher deductible and
Speaker 1: make sure that you're emergency fund has your deductible saved
Speaker 1: in it for those worst case scenarios. But definitely having
Speaker 1: insurance to cover medical costs is a big one. Yeah,
Speaker 1: let me put something into perspective for you. I was
Speaker 1: doing research for an article recently and I read this,
Speaker 1: and I actually had to double check the source. But
Speaker 1: more people, I think it was in two thousand seventeen
Speaker 1: or eighteen from the from the data, more people filed
Speaker 1: bankruptcy than got divorced in a single year. What. Yeah,
Speaker 1: And that number was verified by data from federal from
Speaker 1: federal data, and so and you hear, because you can't
Speaker 1: hide a divorce, but you can't hide a bankruptcy. And
Speaker 1: most of those bankruptcies are due two medical expenses. So
Speaker 1: just medical debt piling up, that's super. That's a lot
Speaker 1: of them. Businesses are a lot, but for for common people,
Speaker 1: it's medical debt. And so we have to have health insurance,
Speaker 1: even if it's not required, it is a requirement in
Speaker 1: life UM nowadays with how expensive UM it is to
Speaker 1: be treated medically. The next one is long term care insurance.
Speaker 1: So this is something you start looking into at around
Speaker 1: fifty to sixty five. So ideally you would get a
Speaker 1: term life like maybe a twenty year term life policy
Speaker 1: at thirty and that would run out at fifty. So
Speaker 1: by that time you're pretty good. UM. Maybe your kids
Speaker 1: are older, they can get jobs, or they're in college
Speaker 1: or something, and there is less financial responsibility. You've had
Speaker 1: years and years to build up your savings, so if
Speaker 1: you did pass away, it would not be such a
Speaker 1: financial burden to the family. And this is when you
Speaker 1: start thinking about long term care insurance because it is
Speaker 1: the number one insurance that has taken advantage of more
Speaker 1: than auto, more than homeowners, more than any other type
Speaker 1: of insurance that is paid for. People who get long
Speaker 1: term care insurance use it because what We're all going
Speaker 1: to need some care when we're older, and hopefully we
Speaker 1: get there. You know your kid isn't going to do it.
Speaker 1: You don't. You can't rely on them, that's for sure. Um.
Speaker 1: But yeah, so this is it's not an affordable policy.
Speaker 1: Like term life. Long term care insurance is pricey, but
Speaker 1: the amount you put into it is for sure you
Speaker 1: would pay more out of pocket for especially if you
Speaker 1: need to be in a nursing home, a full time
Speaker 1: nursing home, you will definitely pay more for that out
Speaker 1: of pocket than if you paid monthly for a long
Speaker 1: term care policy. So consider that most policies will uh
Speaker 1: are good for three years of care, so just time
Speaker 1: that to when you will hopefully need it. The next
Speaker 1: on the list is auto insurance. This is just a given.
Speaker 1: You have to have auto insurance to drive your car
Speaker 1: on the road. You need to have it. Hopefully, if
Speaker 1: you are driving a car, you know this and you
Speaker 1: have insurance. We got pulled over one time after running
Speaker 1: a red light. Um Eric's color blind. That's another story.
Speaker 1: I don't think that the end of story. End of story.
Speaker 1: But it was a new vehicle, and when you get
Speaker 1: a new vehicle you have ten days to to get
Speaker 1: the insurance and the proof of it in YadA YadA,
Speaker 1: and I don't know, time slipped away. We had insurance,
Speaker 1: but we didn't have the cards for it. My point
Speaker 1: is it was expensive. If we didn't have insurance, it
Speaker 1: was gonna be over a thousand dollars between paying the
Speaker 1: fine work fees. I don't even remember all that went
Speaker 1: into it. It was just going to be a heavy
Speaker 1: chunk of change. We didn't have to pay it because
Speaker 1: we were able to prove that yes, actually we did
Speaker 1: have insurance, we just didn't have the proof of it.
Speaker 1: All that to say have have auto insurance, you have
Speaker 1: to have it, and then if you don't you're going
Speaker 1: to pay even more for not having it. So and
Speaker 1: now I think it's more common that we buy it
Speaker 1: and we forget to put the proof in our glove
Speaker 1: compartment or wallet. So do that. This is your reminder
Speaker 1: that if you haven't, you should. And the next one
Speaker 1: is homeowners insurance. So if you own a home, you're
Speaker 1: definitely going to have homeowner's insurance. Actually, in Florida, if
Speaker 1: you've paid off your home, you don't have to have
Speaker 1: homeowners insurance. But again, you you want to have some
Speaker 1: insurance for your home. If it all falls down, let
Speaker 1: your entire investment just like burnt to a crisp. Alternatively,
Speaker 1: if you don't own a home, renters insurance might be
Speaker 1: a good idea for you, depending on the things you
Speaker 1: keep in your home. Like I don't have anything fancy.
Speaker 1: I didn't have anything and fancy in my apartment. But
Speaker 1: if maybe you have recording equipment or things of value
Speaker 1: and you rent, then a renter's insurance policy is a
Speaker 1: good idea. I definitely recommend a renter's insurance policy. It's
Speaker 1: pretty much all Eric and I have done is is
Speaker 1: rentals of some sort, and actually a lot of times
Speaker 1: your landlord will make you have that. Uh. And this
Speaker 1: is another one that I think people just aren't aware
Speaker 1: how inexpensive it is. I think we pay less than
Speaker 1: five hundred dollars a year for our renter's insurance, and
Speaker 1: that would cover anything even if you don't have valuables
Speaker 1: in your home, if you have to start over, that's
Speaker 1: still thousands of dollars just to get your kitchen equipment
Speaker 1: and clothing and furniture, or even if you're getting it
Speaker 1: from the thrift store. So I think it's a really
Speaker 1: good idea to have renters insurance if that's your situation.
Speaker 1: Good point. So those are the six insurances that you
Speaker 1: really should consider, obviously not all at the same time,
Speaker 1: but throughout your journey. These are the ones that you
Speaker 1: want to focus on. And there are a lot of
Speaker 1: insurances that people talk about and it's hard to determine
Speaker 1: whether you actually need something or not. So we've got
Speaker 1: another article from policy Genius and it is the seven
Speaker 1: insurance policies you Don't need and it's from Insurance policy website.
Speaker 1: So you know it's good. You can trust them. They're
Speaker 1: not going to tell you the ones. They're not going
Speaker 1: to try and sell you things that, well, you would
Speaker 1: expect them to sell you things that you don't need,
Speaker 1: but they're not. They're telling you point blank what you
Speaker 1: don't need, don't need an alternative, So I like that.
Speaker 1: So this first one listed is private Mortgage Insurance p
Speaker 1: m I for short, saying you don't you don't actually
Speaker 1: need this, of course, it's so what it is. It's
Speaker 1: a it's a private mortgage insurance that UM. If a
Speaker 1: borrower is paying less than down payment, it's basically protecting
Speaker 1: the lender. So mortgage companies, so if you're paying less
Speaker 1: than a traditional down on your home, you might be
Speaker 1: asked to have a p m I, but they're recommending
Speaker 1: that you save up for a bigger down payment, or
Speaker 1: you put a down payment of ten to fifteen percent
Speaker 1: and borrow the money on the property sale price. So
Speaker 1: there are alternatives to this, and they're kind of saying
Speaker 1: it doesn't even really protect you, it protects the lender. Yeah,
Speaker 1: we have p m I on our mortgage. It just
Speaker 1: worked out that it was better to do that than
Speaker 1: wait to buy home. And home prices in our area
Speaker 1: have risen almost thirteen percent year over year, so for us,
Speaker 1: it made sense to get in UM. And take that
Speaker 1: monthly p m I payment, But we are about to
Speaker 1: refinance to get that off. So that's an option if
Speaker 1: you believe the equity in your home has risen so
Speaker 1: much that you can get p m I off, then
Speaker 1: you can refinance. But that's mostly going to be for
Speaker 1: real estate markets that are really booming. I wouldn't say
Speaker 1: the same thing for for a stagnant market. The next
Speaker 1: is credit card insurance. And I had actually never heard
Speaker 1: of this until I was reading this article, and I
Speaker 1: travel hack and use credit cards quite a bit. I
Speaker 1: hadn't heard of it because it's basically a scam. Um.
Speaker 1: The what it is is the promise to pay off
Speaker 1: your credit card balance when you can't um, and then
Speaker 1: they like promise you these really low rates and it's
Speaker 1: like a dollar fifty for eight hundred dollars of outstanding
Speaker 1: credit card balance you have, And exactly what the article
Speaker 1: is saying, like, it's if you're thinking that it's too
Speaker 1: good to be true, you're right, and it's an absolute
Speaker 1: scam for those prices. You should just pay off the card,
Speaker 1: like don't pay somebody to pay it off, or you
Speaker 1: just pay it off. So yeah, don't be scammed The
Speaker 1: next one is life insurance for children. So they're recommending this,
Speaker 1: not that you not do this. Really, what life insurance
Speaker 1: is intended to do is, as we mentioned earlier, pay
Speaker 1: for bills and expenses, make up for income lost, pay
Speaker 1: for funeral expenses, that kind of a thing. The likelihood
Speaker 1: of you needing this for a child versus a senior
Speaker 1: or or even just an adult who's earning income is
Speaker 1: much lower. You you really don't need to have this
Speaker 1: for your child. Um And it talks about being able
Speaker 1: to utilize an insurance policy as an investment for when
Speaker 1: the child goes to college, and that's just a salesman
Speaker 1: scam because you would only need you would only receive
Speaker 1: that if it's a life and a whole life policy,
Speaker 1: and even then you're not going to yield enough dividends
Speaker 1: to make it a good investment. You would be better
Speaker 1: off going the tried and true route of a five
Speaker 1: twenty nine college savings planned than trying to use life
Speaker 1: insurance as an investment for your kid. Yeah, the salesperson
Speaker 1: gets a cut. I know this because my uncle is
Speaker 1: that he sells insurance, and my grandmother took out a
Speaker 1: policy on me to help him when he was starting out.
Speaker 1: And that was actually a policy that I cashed out
Speaker 1: when we were paying off debt um and all my
Speaker 1: life she had been paying this and I got about
Speaker 1: just two grand back on it. And even still my
Speaker 1: um my uncle was like, please reconsider doing this, and
Speaker 1: I'm like, no, I'm getting a term life policy by so, yeah,
Speaker 1: it's really more for the person selling it, and they'll
Speaker 1: I'll try and like sugarcoat it and be like it's
Speaker 1: only you know, five extra bucks a month to have
Speaker 1: this sense of security, and uh, you're better off with
Speaker 1: a five for your child. The next one is wedding
Speaker 1: insurance and uh it's approximately runs a hundred to five
Speaker 1: fifty per wedding and it's for if somebody calls off
Speaker 1: the wedding or you have to cancel it for some reason.
Speaker 1: And uh so that would just I mean, the alternative
Speaker 1: would be to make sure nobody's going to call off
Speaker 1: the wedding before you get engaged. You want to get married, yeah, um,
Speaker 1: And then if you're planning a wedding in like a
Speaker 1: area that could you know, an outside venue that where
Speaker 1: it could rain, um, have a backup, then you don't
Speaker 1: have to cancel the wedding, So so many alternatives for
Speaker 1: this one. Don't don't waste hundreds of dollars ensuring your wedding.
Speaker 1: I will say, I'm going to be the unpopular opinion
Speaker 1: on this one. If it really is only a hundred
Speaker 1: dollars and there is the likelihood of being able to
Speaker 1: get money back that you've invested into it, Like right there,
Speaker 1: they're they're talking about calling off the wedding, but there
Speaker 1: are a lot of other reasons that the date might
Speaker 1: not work an unexpected death of um, somebody in the family,
Speaker 1: or yeah, hurricane comes through or whatever, something like that.
Speaker 1: If it is only a couple hundred dollars and and
Speaker 1: you're able to have somebody help you look through the
Speaker 1: policy and you're ensured to be repaid for if if
Speaker 1: you are spending thousands and thousands on your wedding, it
Speaker 1: it's not the worst idea. It's not like a hundred
Speaker 1: dollars is gonna really set you over the limit. So
Speaker 1: I'm a little bit on the fence with that one.
Speaker 1: Like especially, yeah, if you're doing an outdoor wedding and
Speaker 1: it's costing a lot of money for specific outdoor things
Speaker 1: that yeah, I don't think it's the worst idea if
Speaker 1: that's how low it is. Yeah, but you can also
Speaker 1: check with your vendors and see what their policies are
Speaker 1: for if there's a um, you know, a hurricane or something.
Speaker 1: But yeah, if there's a death in the family and
Speaker 1: you just you know, I don't want to do it
Speaker 1: as the hundred dollars, it's not that bad. You just
Speaker 1: have to see what it all covers. They do make
Speaker 1: a good point that vendors will have their own insurances
Speaker 1: that they have to take out, which is true, so yes,
Speaker 1: check with them on what theirs would cover and all
Speaker 1: that good stuff. Yeah. Next is extended warranties, and I
Speaker 1: think we've all kind of heard about that and we're
Speaker 1: all like, you know, we're not getting the extended warranties.
Speaker 1: But sometimes that this could become a difficult decision, Like
Speaker 1: when you're getting a car. At the end, they will
Speaker 1: ask you all of these questions on the options you want,
Speaker 1: and even if you're getting a used car, they will
Speaker 1: just find questions to ask you and they will drag
Speaker 1: out the process. And that's in order to give you
Speaker 1: decision fatigue, because you'll think about the first five or
Speaker 1: ten questions but after that, your brain is done and
Speaker 1: you're kind of just going with with whatever they recommend
Speaker 1: at that point. And that is a sales tactic. And
Speaker 1: so they'll do all of this and at the very
Speaker 1: end they'll tell you all the merits of extended warranties,
Speaker 1: and you'll second guess yourself and you'll say, Okay, maybe
Speaker 1: I do need the extended warranty, and you'll leave there,
Speaker 1: get a good night's sleep, and you'll regret buying it.
Speaker 1: I know this because I did this when I was
Speaker 1: I was probably about um, but no, this is what
Speaker 1: happened to me. And I woke up the next morning
Speaker 1: and I was like, idiot, Like what that was a
Speaker 1: thousand bucks and what was the point of it? Um?
Speaker 1: But it was and that was the reason why that
Speaker 1: was the tactic they used on me. So know that
Speaker 1: when you are making a big purchase and they are
Speaker 1: doing that to you, that's what they're trying to get at.
Speaker 1: The next one on the list is mortgage life insurance.
Speaker 1: So it's a it is what it sounds like. It
Speaker 1: promises to pay off your mortgage in the event that
Speaker 1: you pass away. However, they are saying, why not just
Speaker 1: get a good life insurance policy. It is one of
Speaker 1: your biggest expenses, and so if you've got a good
Speaker 1: life insurance policy, that should be enough to cover the
Speaker 1: cost of mortgage payments and other bills. So this could
Speaker 1: just be an added insurance that's not needed that other
Speaker 1: insurance policies would cover. And the life insurance policy the
Speaker 1: term is more flexible, so you don't have to pay
Speaker 1: off the mortgage, where this one would require that even
Speaker 1: if the other spouses they're surviving, spouse has income to
Speaker 1: pay off mortgage and wants to maybe use it for
Speaker 1: something else, so you'd be much better off with regular life.
Speaker 1: The next one is unemployment insurance, and I hadn't really
Speaker 1: heard about this one either, So it's a pretty straightforward
Speaker 1: type of coverage. It minimally covers your bills and expense
Speaker 1: is in the event you're out of work, and it
Speaker 1: can be handy in the event of a surprise layoff,
Speaker 1: but like I feel like almost every layoff is surprised,
Speaker 1: So like, how long are you going to be paying
Speaker 1: for this? And alternatively you could just save an emergency
Speaker 1: fund and when you if you think your job is
Speaker 1: really safe, then save three months. But if you notice
Speaker 1: signs of Okay, things are changing, I don't know. I
Speaker 1: think my job is safe, but I don't know. Then
Speaker 1: up to six months just in case, or or have
Speaker 1: it six months to begin with similar concept to disability insurance.
Speaker 1: That yeah, maybe you could go alternative routes of high
Speaker 1: emergency funds, other streams of revenue, passive income, side hustles,
Speaker 1: those kinds of things and that need this kind of insurance.
Speaker 1: Mm hmm. Also recognize that there is unemployment that if
Speaker 1: you are in a dire situation, the government does give unemployment.
Speaker 1: So there are some other alternatives to having that kind
Speaker 1: of insurance mm hmm. And then a last one, which
Speaker 1: is a bonus, is whole life insurance. So we mentioned
Speaker 1: that a little bit earlier. UM, but on paper, whole
Speaker 1: life insurance can sound like a good idea. UM. You
Speaker 1: buy a policy and you get lifetime coverage for you
Speaker 1: and your family, and your policy doubles as an interest
Speaker 1: bearing savings account. Whole life is also referred to as
Speaker 1: permanent life insurance to or cash value. However, whole life
Speaker 1: isn't a great financial product and it doesn't offer a
Speaker 1: lot of financial protection. The amounts they pay out upon
Speaker 1: death are usually much lower than a term policy. It's
Speaker 1: much more expensive and the returns are not as good
Speaker 1: as an investment policy, our plan, you know, like we said,
Speaker 1: it's better to save in a five for your kids
Speaker 1: college than a whole life paul. See, they're usually returning
Speaker 1: about probably around the same as bonds, maybe less. I
Speaker 1: haven't checked lately, um, But now with so many high
Speaker 1: yield savings accounts to there's really no reason some because
Speaker 1: some of them just yield that much. So really no, um,
Speaker 1: no reason to get a whole life policy unless you
Speaker 1: do not qualify for term. If you cannot get a
Speaker 1: term policy, it is better to have a whole life
Speaker 1: policy than nothing at all. And so there is a
Speaker 1: reason whole life insurance policies exist um as a as
Speaker 1: a last resort. But they're not like a go to.
Speaker 1: You know what is a go to? Oh, this is
Speaker 1: never my last resort. It's the bit of the we.
Speaker 1: That's right. It's time for the best minute of your
Speaker 1: entire week. Maybe a baby was born and his name
Speaker 1: is William. Maybe you paid off your mortgage, Maybe your
Speaker 1: car died and you're happy to not have to pay
Speaker 1: that bill anymore. That bill buffalo bills, Bill Clinton, this
Speaker 1: is the bill of the week. Hey, Jenn and Jill,
Speaker 1: this is Rebecca and I'm from Virginia. I'm just calling
Speaker 1: to let you know about my bill of the week.
Speaker 1: So um, for the past year, well, I guess year
Speaker 1: and a half, my husband and I have been paying
Speaker 1: rent and that is the bill of the week, and
Speaker 1: so so far it has been our biggest monthly bill,
Speaker 1: and it is soon going to be changing because we
Speaker 1: are moving and we're moving to a cheaper area that
Speaker 1: is also closer to where I work, and that's also
Speaker 1: a new job and changed himself. Yeah, exciting time. Who um.
Speaker 1: But anyway, the person that we've been paying our bill
Speaker 1: too is none other than a man named Bill, and
Speaker 1: it was just too good. I couldn't help but let
Speaker 1: you know about it because soon we're moving and we're
Speaker 1: gonna be, you know, paying to someone that is not
Speaker 1: named Bill, and that's kind of a little bit sad
Speaker 1: to me, especially with all the bill of the week stuff.
Speaker 1: So anyway, I had to get it in there while
Speaker 1: that's still the case, and while that is still our bill. Anyway,
Speaker 1: I hope you guys have a great day. I love
Speaker 1: the show. Huge fan I'm actually currently listening to it
Speaker 1: as I am moving up the old house and getting
Speaker 1: ready to go. Look forward to hearing more. Bye, Oh,
Speaker 1: I'm for back up. Thanks so much, double bill like
Speaker 1: paying bills to bill. That's got it. I mean, that's
Speaker 1: show money out of your pocket, but it's still has
Speaker 1: to feel amazing. I love it. Thanks so much for
Speaker 1: sharing that, And best wishes in your move and your
Speaker 1: new job and all the new things. So what's exciting
Speaker 1: time to move to a less expensive area too. That's
Speaker 1: such a good, good update. I love that. If you
Speaker 1: want to share your bill of the week with us,
Speaker 1: visit Frugal Friends podcast dot um slash bill and leave
Speaker 1: us a speak pipe message or a Google voicemail and
Speaker 1: we want to hear about it. We are so excited.
Speaker 1: It is our favorite time of the week. I love bills, people,
Speaker 1: bills on bills, on bills, bills. I don't have to
Speaker 1: pass on stacks on stacks. But now it's time for
Speaker 1: slening around, all right. So these are the insurances you
Speaker 1: need and don't need, But how do you save money
Speaker 1: on them? We've got four tips to save money on
Speaker 1: uh the insurances you do need. Jill pick it off bundle,
Speaker 1: bundle that home and auto. I know I sound like
Speaker 1: a commercial, but in all reality, you can save an
Speaker 1: average of for getting your insurance policies with one company.
Speaker 1: So consider and even use that as a negotiation tool
Speaker 1: of Hey, I'm going to have this, this and this
Speaker 1: insurance through you all, what kind of deal can you
Speaker 1: give me? So good, so good. Regularly shop around for
Speaker 1: car insurance every we pay every six months, and that's
Speaker 1: another way that we save money. But before we pay,
Speaker 1: we always look at um different policies that we can
Speaker 1: get from different people, and then we'll come back to
Speaker 1: our policy holder and be like, hey, these are rates
Speaker 1: that we could get elsewhere. What can you do for us?
Speaker 1: And and we will always get some money off if
Speaker 1: we always save money that way. And or sometimes they're
Speaker 1: like no, I can't do it, and then you just
Speaker 1: go somewhere else. But people really like the people that
Speaker 1: pay on time or every six months. Or you could
Speaker 1: raise your deductible too, if you're trying to lower your bill.
Speaker 1: We love to have full coverage, but that is our
Speaker 1: personal preference. Another way to save money on insurance is
Speaker 1: to get and stay healthy. To save on life insurance.
Speaker 1: You know that this one doesn't sound like as fun,
Speaker 1: but you can pay less for your insurance if you
Speaker 1: are a healthy individual. Of course, some of that is
Speaker 1: outside of our control, but what is in your control?
Speaker 1: Do those things? Eat well, exercise UM, have regular checkups,
Speaker 1: avoid smoking, UM. Just give your body good things, get
Speaker 1: enough sleep. All these things will help for the things
Speaker 1: that are inside of your control. That will help you
Speaker 1: save on life insurance. And the last one is to
Speaker 1: ask about discounts on homeowners insurance, so you can call
Speaker 1: your policy holder and ask what can I do to
Speaker 1: my house that will lower my policy. We had to
Speaker 1: get a new roof on and so we asked what
Speaker 1: are things that we could do roof wise to lower
Speaker 1: our policy And there were just these little straps we
Speaker 1: had to add before the roof was put on, and
Speaker 1: by doing out, we paid a little more UM, but
Speaker 1: we made our money back in like lowering our home
Speaker 1: insurance bill by half. So in one year that little
Speaker 1: thing will be paid off and we'll be just saving
Speaker 1: money UM for the rest of the life of the roof.
Speaker 1: So ask about those discounts, especially if you plan on
Speaker 1: doing anything to the house. UM. See if you can
Speaker 1: do those things simultaneously. You'll save money on the installation
Speaker 1: or whatever and then also save money on your insurance.
Speaker 1: I like that idea for sharing that tip. Alright, y'all,
Speaker 1: we're at the end of the episode. Thank you so
Speaker 1: much for listening, and we also want to thank you
Speaker 1: for your kind reviews. So one way of saying thank
Speaker 1: you was to read one like this one from iTunes
Speaker 1: and Stitcher. It's from acpod a frugal friends crush. Love
Speaker 1: the format. It feels like I have a couple of
Speaker 1: new fruit girlfriends. I have just binge listened through a
Speaker 1: bunch of episodes and I've really enjoyed them. The fake
Speaker 1: sponsors are great five stars. Thanks so much, ac pod Pod.
Speaker 1: We also want to thank you for sharing these episodes
Speaker 1: on social media. So in addition to doing our monthly
Speaker 1: drawing for our friends who leave reviews, tag us in
Speaker 1: your shares on Facebook or Instagram and we will add
Speaker 1: you to our monthly drawing. So we're going to do
Speaker 1: for every five tags and reviews we get every month,
Speaker 1: We're giving away a ten dollar Amazon gift card for
Speaker 1: every five. So keep leaving us reviews on iTunes and Stitcher.
Speaker 1: Send us a screenshot of those reviews at Frugal Friends
Speaker 1: podcast at gmail dot com and tag us on social media.
Speaker 1: You will be entered either way. Yes, thank you, thank you,
Speaker 1: thank you, and we will see you next week. Bye.
Speaker 1: Frugal Friends is produced, edited and mixed by Eric Cerien.
Speaker 1: I'm glad we kept this insurance peace short. No one
Speaker 1: wants to listen to Let's talk about insurance nobody over
Speaker 1: thirty seven minutes. I don't want to talk about insurance
Speaker 1: for over thirty seven That's all the content you need,
Speaker 1: and you go have fun, right. I gotta go make
Speaker 1: me somehow coffee. Let's do it right. Bye bye bye