My DM is 87 and lives alone. She still drives, and is generally in good health. She's also not in bad shape financially. She has a decent amount of savings. And her pensions easily cover her monthly outgoings. I set her up with a regular savings account from her current account, and each month money is paid into this account (over and above her lumpsum savings) for the purpose of paying larger bills.
Every May she get renewal notices for her car and home insurances. They are a few hundred pounds each. .
Every year at renewal time she tells me she wants to pay by direct debit because the insurance premium will leave her short for her regular monthly expenses from her current account.
I've explained over and over that paying this way is more expensive. By as much as £80 for both policies. Every year she gets all stroppy on me and says she doesn't care, she's rather pay by installments, because she doesn't want to be short in her current account.
I've explained she has a regular savings account for this purpose, and lump sum savings as well. She says she doesn't want to use her savings for insurance!!!
I've suggested she use the money saved and give it instead to a charity rather than to an insurance company. She just won't have it.
I know it's her money her choice, but my god I hate insurance renewals now with a vengeance!!!
How can I persuade her that insurance companies do not need her hard earned cash?