Become Healthier and Wealthier by Kicking These Bad Habits

The connections between health and wealth are numerous but easily overlooked when we’re too focused on improving one or the other. It’s easy to forget that health issues can devastate our finances and poor health may lead to us making bad financial decisions. On the contrary, the benefits of maintaining good health can include better productivity, less time off sick, and a more positive outlook on life, all of which make it easier for us to make smart financial choices.

Here are a few bad habits that if kicked, would make you both healthier and wealthier:


Cutting our cigarettes is an easy way to add years to your life. You’ve heard the health risks that come with smoking: heart attack, stroke, lung cancer, coronary heart disease and more.

In addition to the money you’d save on purchasing cigarettes (an average of $6-$8 per pack), stopping smoking will also save you on health care costs. Insurance premiums for smokers almost always cost more than those of nonsmokers.

Poor Diet

Cut the excess calories from fast food and high calorie processed foods. A balanced diet leads to a healthy weight. Being at a healthy weight means better health both mental and physical.

In turn, better health means you’ll have lower insurance premiums as well as lower life insurance rates. It’s estimated that healthy people save, on average, $1,429 more each year than people who are obese.

Physical Inactivity

You don’t need to follow an aggressive exercise program to be active. Merely adding a 30-minute walk each day can drastically lower risks of developing a chronic health problem.

Adding exercise, even if it’s minimal, is similar to the way we increase wealth. Exercise includes setting goals, staying disciplined, and maintaining positive habits. If you can do one or the other, exercise or saving, you can do the other.

Whether you aim to increase your wealth or to better your health, work to find a balance between improving both.

6 Types of Car Insurance Coverage Explained

When searching for car insurance or making changes to your current policy, you’ll need to have an understanding of the various types of coverage to tailor your auto policy to meet your needs. Coverage requirements can differ between states. Some may be mandatory while others may be optional. In this post, we address the six most common types of car insurance as well as a few tips on how to save on car insurance.

1. Liability

Liability coverage provides insurance coverage for other people’s expenses if you’re in an accident that is legally determined to be your fault. In other words, liability covers you when you’re “liable” for the accident. There are two types of liability coverage. The first is Bodily Injury, which covers costs from injuries or deaths that are a result of the accident. This includes others people’s medical bills and if sued, in some cases, their legal fees. Property Damage, the other type of liability coverage, covers the costs of other people’s vehicle and property repairs related to the accident.

Liability coverage is mandatory to legally drive a car in most states. It’s best to have liability coverage greater than the minimum in your state if you can afford it. The extra coverage, if you’re found at-fault for the accident, can save you from having to pay a large amount of money for claims exceeding the lower limit on your policy.

2. Collision

Collision coverage covers your car repair or replacement costs in the event of an accident. Collision coverage covers damage from hitting another car, a fixed object (like a fence, tree, guardrail, etc.), or an accent involving only your car (such as rolling or falling).

When financing or leasing a car, lenders usually require collision insurance. If you own your car already, collision insurance is typically optional on your auto policy. Depending on your car’s value, it might be worth dropping collision coverage. For anyone concerned with keeping out of pocket costs down in the event of an accident, having collision coverage is a wise idea.

3. Comprehensive

Comprehensive insurance usually covers damage to your car that results from an unrelated covered event. In other words, comprehensive coverage covers damages to your car that are not a result of a collision. Examples of events covered may include hitting an animal, damage from the weather, theft, and vandalism.

Those financing or leasing cars are usually required by lenders to have comprehensive coverage. If your car has been paid off, you may choose to skip comprehensive coverage. If you’re not required to have comprehensive coverage but are concerned about out of pocket costs, you might want to add comprehensive coverage to your policy.

4. Uninsured or Underinsured Motorist

Uninsured/underinsured motorist coverage covers you in the event of an accident involving drivers with no insurance or not enough insurance as well as hit-and-run accidents.

Uninsured/underinsured motorist coverage may or may not be required depending on the state where you live.

5. Medical Payments

Medical payments coverage covers health care costs of you and others riding in your car in the event of an accident. Health care costs from injuries sustained in a car accident can cost thousands of dollars. If a friend riding in your car were to break an arm in the accident, your medical payments coverage may reimburse the friend’s health care costs, such as doctor’s bills or treatments.

In some states, medical payment coverage is required. Medical payments coverage is similar to the last type of coverage we’ll address below: personal injury protection. You usually don’t need to have both types of coverage, but it’s important to understand the differences between the two so that you can decide which best fits your policy needs.

6. Personal Injury Protection

Personal injury protection coverage is similar to medical payments coverage. Personal injury protection (PIP) usually provides coverage for a broader range of expenses compared to medical payments coverage. PIP may cover costs related to medical and rehabilitation, funeral costs, and work loss.

Most states require a minimum amount of PIP coverage. If it’s not mandatory in your state, consider choosing one or the other: PIP or medical payments coverage. It usually doesn’t make sense to have both.

Your auto policy needs will be personal to your own situation. Most types of coverage are required, but the amount of each that your policy contains should be tailored to your situation and budget. If you still have questions regarding car insurance coverage, consider contacting your local insurance agent.

Save Money – Reassess Your Insurance

In this post, we address more money-saving strategies that include giving your home insurance a second look. Included below are tips and tricks to trim expenditures both large and small. If you missed it, our tips for saving money by squeezing the kilowatts can be found here.

SHIELD YOURSELF FROM LIABILITY WITH AN UMBRELLA. Most homeowners policies provide $100,000 in liability protection. A good auto policy should cover at least $100,000 per person and $300,000 per accident for liability. But you may need more. The best way to raise your protection is with an umbrella liability policy. The $250 to $300 annual cost of a $1-million policy could save you more than anything else you’ve ever bought. You may need to have your auto and homeowners coverage from the same company to get the broadest protection, including coverage for risks such as accusations of libel and slander. That may garner a discount of about 10% on each policy.

SHOP FOR REPLACEMENT-COST COVERAGE FOR YOUR HOME. You’ll pay about 10% extra for such a policy–but it will pay the full cost of rebuilding your home. And if you have to make a claim for the loss of, say, your ten-year-old dining-room set, you’ll get the money to buy a new one. Some large insurers are capping replacement-cost guarantees of the structure at 120% to 125% of the amount. You need to know what 100% means. If you doubt your agent’s estimate, get a contractor’s take on how much it would cost to rebuild (see “Home,” Aug.).

FILL GAPS IN COVERAGE OF YOUR COMPUTER AND EXPENSIVE ELECTRONICS. Some homeowners policies have a $5,000 or $10,000 limit on electronic equipment, according to the Insurance Information Institute. Even with replacement-cost coverage, you might need to beef up that limit to cover your computer, big-screen TV, satellite dish, video camera and audio equipment. You can boost you]’ coverage for $50 to $100 per year.

RAISE YOUR DEDUCTIBLE. Frequent small claims could prompt your insurance company to drop you at renewal time anyway. So paying for the small losses yourself could save big in the long run. Raising your deductible from $250 to $500 will cut your premium by about 12%. Raise it to $1,000 and you’ll cut the premium by 24%.


Disclaimer: Modern Lending Solutions ( is not a lender. We offer a matching service for connecting potential borrowers with financial institutions. Loan amounts, rates, and terms will vary based on lender’s decision, and approval is not guaranteed.
Offers provided to customers feature rate may no greater than 35.99% APR with terms from 61 days to 180 months. However, your actual rate depends on credit score, loan amount, loan term, and credit usage and history, and will be agreed upon between you and the lender. An example of the total amount paid on a personal loan of $5,000 for a term of 36 months at a rate of 10% would be equivalent to $5,808.09 over the 36-month life of the loan.