There’s a lot of material out there about when and why to sign up for different kinds of insurance, but there’s less info about what you can do with that insurance money if you end up receiving it. And in an odd way, one of the things that you should consider when you’re choosing insurance in the first place, is what it will mean to you in the event that you get paid off for some type of event.
With the money you receive from an insurance settlement, consider the options of going on a trip, fixing your car, designing your home from the ground up, doing some smart investing, or just balancing your budget and your bills.
Go On a Trip
If you get insurance money for something health related, it might be a good time to use that money to go on a trip that you always wanted to do. Something fun. Something exotic. Something unusual. Something to take your mind off illness and pain. Yes, some health-related insurance money you should toward medical expenses, but there’s nothing wrong with using some of the cash to do something enjoyable.
Fix Your Car
If you’ve gotten in some kind of car accident and your car insurance covered it, your obvious first choice when it comes to using that money is going to be either to fix your car, or buy a totally new one. If you’ve been dreaming about upgrading your ride, then this is definitely the time to do it. Depending on your other life circumstances, you obviously want to make a logical decision about make and model, but if you have the money to spend, get something safe, comfortable, and satisfying.
Design Your Home From the Ground Up
It can be a terrible thing if your home burns down, but assuming your home insurance covers fire, you can take the opportunity to start from scratch and design your dream house. Spending on the state of the wreckage, you might even be able to build on the same lot, but just create everything you wish you other home had.
Do Some Smart Investing
If you have some insurance money that you’re willing to take some risk with, you can always choose the stock market option. Get a good investment banker and put all of that cash into stocks and bonds, and watch your seed money bloom into something magnificent as the years go by.
Balance Your Budget and Your Bills
If you’ve gotten insurance money for some reason, and you have debt across any of your financial spectrum, it can be the perfect time to fix that as well. Pay off your credit cards. Pay off your school loans. Pay back people that you’ve borrowed money from in the past. Sometimes insurance money can be incredibly practical in that regard.