I’ve already written about the dangers of being under-insured. But I also sometimes encounter people who are over-insured – they have too much insurance. How do you know if that’s you?

People most often become over-insured through one of two ways: fear, and aggressive sales tactics.

Fear can lead you to become over-insured. Sometimes people use insurance to make themselves feel safe. When you have over $250,000 limits on your auto insurance plus homeowners insurance plus $2,000,000 in personal umbrella coverage just in case, then either you have a lot of assets to protect, or you’re worrying unrealistically. Insurance can’t stop bad things from happening to you. You can’t trust it with the outcome of your life.

Personally, I believe that’s the kind of trust you can only put in God.

Aggressive sales tactics can also lead people to become over-insured. Some insurance agents are more interested in the commission they get from selling a policy with a higher premium than they are in the needs of their customers. They steer their customers away from asking questions and prey on their fears to sell more.

Nothing breaks my heart more than this, because it’s the opposite of what a good agent should be. At Stewardship, we never use manipulative tactics. We’re educators, not salesmen. We encourage questions and give honest answers. The whole point of being an independent agent is to care about our customers and help them find what fits their needs.

Answering “How do I know if I’m over-insured?”

The best way to find out whether you’re over-insured is to have an independent agent, like our own Brandon Ream, go over your financial situation. He can give you advice based on your needs, not your fears.

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