Farmers Insurance & Financial Services

Deductible $avings Account

Are you over-paying for your home and auto insurance?  If you carry low deductibles such as $100, $250, or $500 you just might be…. 

If we could show you a way to lower your insurance cost and save for the future while still having money available to cover your deductible, would you be interested?

Here's an example of the Deductible Savings Account in action:

  Customer 1:  Mr. Spender                                            Customer 2:  Mr. Sensibility

As this example shows, Mr. Sensibility is spending almost $700 less per year for the same exact coverages.  They both drive the same SUV and they both have identical 2000 sq. ft. brick homes in Chicago.  They both have the same liability limits and coverage amounts.  The only difference is their choice of deductible. 

Are you afraid of the “potential” large out-of-pocket expenses associated with higher deductibles?  We say potential because no one ever plans to have a claim, but unfortunately they do happen.  Let us show you the beauty of this plan and how it works.

Since Mr. Sensibility has an additional $700 burning a hole in his pocket from his yearly premium savings, he can put that money into an Individual Retirement Account such as a Roth IRA.  His Farmers agent has informed him that he can withdraw his principal investment at any time he needs it without penalty.  Mr. Sensibility figures that he would rather have this money working for him, instead of just giving it to the insurance company by paying higher premiums.

Over the course of a year Mr. Sensibility has contributed $700 to his Roth IRA, and after two years he as contributed a total of $1400.   Halfway through year three the unfortunate happens… Mr. Sensibility has an auto accident.  It turns out it was his fault and he needs to have his car repaired.  It is his first claim in 10 years!

 His principal investments by this time have totaled over $1700.  Mr. Sensibility decides to withdraw $1250 from his account balance to pay his deductible.  Mr. Sensibility’s car is now fixed and running better than ever.  He feels great knowing that he still has over $500 of principal in his account, along with any investment returns he may have.  He also enjoys the fact that he didn’t have to sacrifice his coverages in order to save money. 

This program also works the same was for home insurance deductibles!  And since there is no requirement to use the account only on your deductibles, you will also have money set aside for other emergencies such as unexpected car repairs or small home improvement projects.   

The best part of the deal? If Mr. Sensibility never has an accident (and we all hope we never do) his accounts would continue to grow even faster!  And should his investments produce positive returns, Mr. Sensibility’s account balance will grow faster still.  When Mr. Sensibility chooses to retire, the money he saved on his insurance premiums could help pay for family vacations, supplement his other retirement plans, purchase his dream car, or even pay for his grandchildren’s college education! 

Why not let your hard earned money work for you?  Ask us how you can start a similar savings plan today.  This revolutionary approach to insurance is proudly brought to you by Andrew J. Flanagan Insurance Agency, Inc. 

Other benefits of the plan:

·        You'll file fewer claims.  By self-insuring for a higher amount, you will handle small claims without the need to file an actual claim.  This will keep surcharges off your policy and eliminate the danger of ever getting dropped by your insurance company for too many claims.

·        You'll have money available for emergencies.  Using the Deductible Savings Account approach to insurance allows you the flexibility to spend your money on what is important to you, when you need it most.

·        You don't need to have your home or auto insurance with Farmers.  Even if you are with another carrier, our agency can set this plan up for you!  Since you own the account that we set up it does not matter what company you use to insure your family.  It will work for you with any company.

·        This program works with all lines of insurance.  Think about how much you will save on premium now that you can carry high deductibles on not only your auto and home, but also your boat, motorcycle, motor home, snowmobile, and any other line of insurance you carry.

·        We can start you off on this program for as little as $50 per month.  With Farmers, we can also step up your deductible gradually to coincide with the growth of your funds.  Start with a $750 deductible, and then move to $1250, and so on.  By taking these smaller steps, we make sure that you have adequate funds available to cover your deductible at any given time.

·        The Deductible Savings Accounts will help to promote healthy savings habits.  By treating your savings as a “bill” that must be paid each month rather than a “luxury item’, you will make your future financial planning a necessity rather than just an afterthought.

·        The more lines of insurance you have, the more you can save!  While this plan works for everyone, households with multiple vehicles and/or additional policies will recognize the greatest savings.

·        Even if you already carry higher deductible, this program can still benefit you.  By creating the account, you will be saving for the future, while still keeping funds available for emergencies. 

Call us today and start saving for your future!  Keep more of your hard earned money working for YOU!  Call us today for an appointment.

We help you protect your assets today & grow your assets for tomorrow.  Let us show you how our agency goes beyond insurance and helps you build for a brighter future.

Call us today!  (773) 775-5997 or e-mail at: aflanagan@farmersagent.com

We look forward to hearing from you soon!

 - Financial Products offered through:  

                   Farmers Financial Solutions, LLC  2423 Galena Avenue, Simi Valley, CA 93065  Phone (805) 306-3400 Member NASD

- All investments involve risk.  Past returns are no guarantee of future performance.  Accounts may lose value.

- Above illustration does not contain investment returns which can make the account balance higher or lower than the principal investment.

- Please contact your Farmers agent for additional information or an investment prospectus.

- Make sure to confirm with your finance company and/or mortgage company to see if they have any deductible requirements.

- Contact your Farmers Financial Services Representative for information on fund options and investment guidelines.