4 simple ways you can save on insurance

So you've decided to get insurance. It's a smart move. Here are some easy tips to remember to ensure you get the best bang for your buck on insurance plans.

• Make sure inflation, and your own advancing age, don't get you in the end. Today's $5,000-a-month coverage might just be pocket change in 50 years.
• When given the choice, always choose automatic increases in keeping with inflation over buying more coverage later.
• If you buy added insurance down the road, you're going to be charged a price in relation to your current age, not the age you first bought the policy.

Unless the policy specifically excludes something from coverage, the insurance company has to cover it. Keep this in mind when comparing different policies.

• If you give your insurance company your business over an extended period of time, you may be eligible for a loyalty discount.
• Many home insurers will reduce your premiums by 5 percent if you've been with the company for three to five years, and up to 10 percent after you've been a customer for six years.
• The only way to find out about these loyalty programs is by asking.

For most people, a typical, basic life insurance policy — be it term or whole life — is all you really need. Here are some that you may have that you can get rid of:

• Accidental death and dismemberment: Should you die in any "accidental" manner, this rider doubles the payout. Expect to pay an extra $10 to $12 per month, which can add up over time. But the chances of your dying in an accident are — knock on wood — slim.
• Waiver of premium: For about 8 to 10 percent of your yearly insurance payment, the insurance company continues to pay your premiums should you become disabled. If you're concerned about this, just buy disability insurance.
• Spousal rider: This allows your spouse and children to get term life insurance after you die. It's useless. Kids generally don't need life insurance, and your spouse could probably do better shopping for a new policy.

Buying insurance is like anything else: only the informed get the best deals. Be sure to know what you need, and what you don't, when buying insurance. If you do, you could see cheaper premiums.