You can’t control the future. But you can make smart moves that protect you – and your wallet – no matter what comes next. Like buying the right types of insurance.
That could get you in a lot of financial trouble. Consider these your must-haves:
Exactly how much insurance you need depends on your lifestyle and how comfy you are with risk. PS: if your net worth is higher than $1M, you might want to get an umbrella policy. Because the more you have, the more you stand to lose. Umbrella insurance picks up the slack for your home, car, and other insurance policies by covering you once you’ve reached the cap.
We’re still going. If anyone depends on your income (kids, partners, parents, siblings, etc.), life insurance can help you keep supporting them in a worst-case scenario. One rule of thumb is to buy enough to replace about 10 times your salary. Consider your job, debt, assets, and dependents to figure out the exact number that works for you. Psst...the younger and healthier you are when you buy, the lower your life insurance premiums should be.
Almost. There are a few other types of insurance you can consider. Like pet insurance, travel insurance, and wedding insurance. Just make sure to read the fine print to understand what you’re signing up for. And if there are any gaps you should know about and budget to pay for on your own. For example, pet insurance typically covers unexpected accidents or illness, but not regular checkups or teeth cleanings.
Break out your employee handbook. Some employers go beyond the basic medical/vision/dental package and offer pet insurance or discounted life insurance. But you can always buy your own, too. Get free quotes from a few different, reputable providers. Comparison shopping almost always = savings.
Related: How to Save on Insurance Premiums
Insurance is the safety net that can catch you – and your wallet – if something goes wrong. It might seem expensive, but living without coverage can lead to waaay bigger bills. Consider what you have, how you live, and what you can afford. Then get the basics and weigh the benefits of other policies as life goes on.
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Skimm'd by: Ivana Pino, Elizabeth Smith, and Elyse Steinhaus
There are lots of choices –– and terms –– when it comes to insurance coverage. We Skimm’d the big ones for you here.
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