Remember, the idea of insurance is to transfer risk from you to the insurance company.
- Life Insurance @ 8 - 10 times your annual income (Term ONLY! never cash value life insurance its a big rip off.)
- Health Insurance. The best way is to get it through your employer if you can. If not, consider a individual Health Saving Account with a high deductible. There are some great tax saving advantages to a Health Saving s Account.
- Long Term Disability Insurance. If its available to you through work, get it! It's very cheap this way. I've gone out an purchased it myself years ago.
- Homeowners. You need 100% replacement cost coverage. This is getting harder and harder to find. Most major insurance companies only want to insure your home at it's current value when you first purchase the insurance +a 25% adder. Watch out for this.
- Auto Insurance. If you have a fully funded emergency fund (3 to 6 months) then raise your deductible to $1,000.
- Long-term Care Insurance. As you or a family member reach age 60, purchase a long-term care insurance policy. It will cover in home nursing care or a nursing home.
- Identity Theft Insurance. This is becoming more popular. (I don't have it yet but am considering it.)
If your interest in shopping some of these insurances Dave Ramsey recommends Zander Insurance
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2 comments:
Just came across your blog mentioned by a friend from NewPointe-enjoyed reading some entries. Looks like your bike trip was a great time with great friends.
Your trip got me thinking about vacation season coming up. A quick money planning/budgeting question: Do you plan in advance for vacations/bike trips, or do you set aside so much money and see what you can do with it when the time comes? In the past my wife and I plan a certain destination for the family to go on, but then when the time comes we always seem to spend more money-It seems like the average vacation anymore costs $1500+.
Thanks!
Great Question about vacations. Heres what I always say about vacations. "The best ones are the ones you leave behind when you return home." What I mean by this is our vacations are 100% paid for. No credit card or home equity loan debt to go on vacation.
When we go on vacation, typically every other year, we decide as a family where we want to go and then begin saving for that trip over the next 24 months. Why 24 months, because that's usually how long it takes us to save the money to go on the vacation.
Currently we have $1,000 saved for our 2008 vacation. These dollars are sitting in a 5.05% savings account.
We haven't decided where to go on vacation yet. Any suggestions?
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