Tag Archives: insurance

Sometimes Spending More is Wiser than Getting a Deal

Posted on by

Anyone who knows me knows that I am cheap, er, wisely frugal. I refuse to pay more than $5 a pound for chicken and generally will only pay $3. I have to make my husband take the kids out for ice cream because I just can’t make myself pay that much for a single cone when you could get a pint of the best stuff for the same price. Yet I saw an ad yesterday that made me even me stop and think there are times when a wise person will spend more not less.

The ad in question was for a waterproof iPad case. It showed someone, at least in theory, holding the encased iPad underwater to take a photo of a freckled red-headed Caucasian kid swimming in a pool. (We can discuss the use of racial stereotypes in advertising another day.) The ad was for an extremely low price (about $10) waterproof case. It touted how wonderful it would be to take photos under water using your iPad or iPod. The vendor was selling the cases through an internet “deal” service.

Now stop and think about this whole scenario for a minute.

Do you have an iPad? Retina? 128 GB? Wi-Fi-enabled?

Or a similar Cadillac iPod?

Was it cheap? Is it easily replaceable? Do you consider it disposable?

Why on EARTH would anyone risk their high priced tech toy in a bargain basement case *underwater*?!

Can you spell disaster?

And imagine trying to get the money for a replacement device from a one-time bargain-sale internet shop. Those are the modern-day-equivalents of those mysterious thrift shops that disappear just after selling you the cursed DVD player that projects The Shining on the walls of every room of your house at night, every night, even when it’s unplugged and locked in a trunk in the garage.

Protect Yourself: Pay More When It’s Appropriate

There are times when you should pay more:

  • Buy airline tickets from a company that doesn’t have to economize on its airplane maintenance work.
  • Buy waterproof cases for expensive electronics from bricks-and-mortar stores and buy cases that offer some kind of warranty against damage to your device.
  • Pay a bit more to get a licensed trained mechanic to fix your brakes.

Think about what you would lose if your purchase doesn’t work before you economize.

Related Reading

Join In
Have you seen other examples of disasters-in-waiting? Please share your experiences with a comment.

Insurance: When It’s Worth It; When It’s Not

Posted on by

Most of us probably make mistakes when buying insurance. I know I do! Sometimes and some things are worth insuring, others are not. Here’s a roundup of some articles to consider.

Travel Insurance

MoneySense shares a horror story in “Are you really covered?” and reminds readers that “even if your emergency wasn’t related to your [medical] condition, because you didn’t fully disclose it, the policy would still be revoked.”

James Daw in The Star reported in “An 89-year-old man’s travel insurance mistake”  the tales of two men, one who successfully claimed on his travel insurance and one who didn’t.

Water Heater Insurance
I ponder the value, or lack thereof, of insurance for your water heater tank in: Is Hot Water a Matter of Life and Death? If Not, Why Are You Insuring Your Water Tank?

Life Insurance
On Life Insurance Canada they answer the question most of us ask ourselves when at 30,000 feet, namely is there: “Life Insurance for Pilots“?

Gail Vaz Oxlade explains Term vs Permanent Insurance for those of us who don’t understand the differences.

Mortgage Insurance
When we bought our first house, our mortgage lender asked us if we wanted to buy Mortgage Insurance. As soon as I heard that it pays the remaining balance of your mortgage at the time of your death, I said “No thanks.”

Big Cajun Man uses life insurance instead of mortgage insurance. He explains his recent round of renewing in “Term Insurance Over 50.”

Disability and Critical Illness Insurance
Boomer described Why You Should Protect Your Earnings With Disability Insurance. She knows: She’s lived through it.

My Own Advisor suggests that “Insurance needs follow a lifecycle.” He suggests that people in their 50s may have kicked the kids out. I think many parents in their 50s still have young kids, for a variety of reasons including starting later and/or starting again. The article suggests useful things to consider at various points in your life.

Extended Warranties
I still remember buying a computer printer for $40 at a large electronics warehouse 11 years ago. At the till the clerk asked if I wanted to buy the $25 extended warranty. For a minute I could just look at him in awe. He managed to ask that with a straight face! There may be times and prices at which an extended warranty is worth investing in. This was definitely not one of them. And yes, 11 years later the printer is still working fine.

Ellen Roseman fought for some customers whose extended warranties on “bonded” leather furniture were as tattered as their couches. As a result of her work and others’ complaints, the Brick is re-working its extended warranties, as she describes in “The Brick reviews its furniture warranties.”  Just to be clear, “bonded” leather has nothing to do with bondage. And very little to do with leather, either, for that matter.

Michael James was offered an extended warranty on a very unexpected item in “Extended Warranties are getting out of control”  You’ll have to read the story to find out if he accepted the offer.

Join In
What are your experiences with insurance? Please share your stories, horror or heartwarming, with a comment.