Are You Covered? Insurance Can Save You Money!

The best way to prevent the “just-in-case” is to prepare for the “just-in-case.” Do not go without insurance coverage!

The most common insurance policies we talk about with regularity are Health Insurance, Auto Insurance, and Homeowner or Renter Insurance. These policies are obviously on the top of the must have list.

Considering the probability of catastrophe and the fact that you have an emergency fund available (you should have at least $1,000 in liquid funds set aside for emergencies only) you can go with higher deductibles and save on premiums.

As for Health Insurance, never go without it! The number-one cause of bankruptcy is medical bills. I have them myself, thanks to a very nasty flu this year. You can also to with a larger deductible here to save on your premiums or go with a Health Savings Account (HSA) allowing you to save for the higher deductibles in a tax-free savings account. Therefore, you have the deductible ready when you need it and you avoid some taxes!

Typical employer benefits programs should also offer Life Insurance and Long-Term Disability Insurance. Take advantage of these programs! Twenty-year level tern insurance equal to roughly ten times your income will cover your loved ones “just-in-case.” Long-Term Disability Insurance is a good idea to ward off the “just-in-case” as well. As we enter our thirties the probability of becoming disabled increases 12 fold, aim for a policy equal to at least half of your income.

As we age the probability of the need for in-home care or nursing home care increases dramatically. You can offset these costs by investing in Long-Term Care Insurance. Considering the high cost of health care ($40,000/year for a typical nursing home), it is a good idea for all older adults (65+) to invest in this kind of policy. Encourage your parents to get it!

Adequate insurance can protect your wealth make sure you are insured!

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Tags: Health, Health care, Health Insurance, Health savings account, Insurance, Insurance contract, Life Insurance, Savings account