Though it’s not pleasant to think about illness, disease, death, disability, floods, fires, accidents, or other awful events, catastrophes can happen and you need to be equipped with the right insurance to get you through.


The first rule of insurance is to insure for the major things and people in your life such as your house, vehicle, future earnings and life, in the event that you die.


Avoid insuring for petty things like extended warranties on computers, eye glasses and cars.


Pet and child life insurance are also a bad deal because your financial survival doesn’t depend on the survival of your pets and children. Adult life and disability coverage is often sufficient for a family.

Next, opt for the highest deductible. The likelihood of something cat­astrophic happening is low, so you should always be able to afford the higher deductible, for example, $1,000 versus $500.

Annual savings roll in at 15 to 20 per cent of the total premium paid when you select the higher deductible.

Low deductibles also give people incentive to file small claims more often. And when you file more claims, your premiums go up. In the unlikely event that you get into loads of accidents, your premiums will increase regardless.