The best financial plan can be ruined if catastrophe strikes. I’m sure you don’t want that after all this hard work you have put in getting on track. You have to protect your income and assets with insurance. You must insure the future at all costs. Here are a few types of insurance you may want to invest in.
Buy as much disability insurance as you can afford. Be sure the policy provides benefits until you reach the age of 65 or for life. Make sure that it covers you if you can’t work.
Nothing disturbs me more than to see a go fund me account for burial expenses. I don’t care how old you are, you need life insurance. If you have children, they need it too. The rule of thumb is to have coverage that equals five to seven times your annual income.
A term policy is often best for people in their 30’s who have young children and need a lot of coverage but don’t have a lot of money for premiums. Term insurance will cover you for a set number of years but gets more expensive each time you renew the policy.
Cash-value insurance is ideal for those who can afford coverage for 20 years or longer. Part of cash-value premiums grows tax-deferred.
This policy should cover what it would cost to replace your home and personal property now. Don’t own your home? No worries, get renters insurance. This will at least cover the contents (your belongings) of the house or apartment you rent.
Liability coverage is key, so make sure you have enough. This is the mandatory coverage set forth by your state. For both comprehensive and collision coverage, take the highest deductible with which you feel comfortable.
Consider dropping comprehensive and collision if your car is more than 5 years old and has lost most of its value.
If you don’t have a will, a power of attorney and a living trust, see an estate attorney. Preparation costs range from $500 to $2000 or more, depending on the complexity of your estate. If you already have these documents, review them and make any changes needed to bring them up to date.