What Types of Insurance Do You Need?

Have you ever considered how many unexpected financial disaster that could possibly happen? What if there were a natural disaster? A Terrorist attack? A job layoff? A vehicle breakdown? An unexpected major medical expense? The possibilities are endless, and you are going to put yourself in a very risky situation if you don’t have the proper types of insurance. Here are the types of insurance that we recommend you have to protect you and your family.
Health Insurance – Every person needs good health insurance. It might seem a little bit expensive, especially if you cannot get group coverage from your employer, but it will be much more expensive to have an unexpected medical expense that you weren’t planning. If your family is healthy, consider saving money by making use of a Health Savings Account.

Automobile Insurance – Most states require that if you are have a vehicle that you are at least required to have liability insurance for your automobile. If you have a “garage sale” car which is worth less than $4000 or so, chances are it’s not worth it to get collision and comprehensive insurance, liability should be enough. If your vehicle is more than $5,000 or so, you should definitely consider getting collision and comprehensive insurance because if something were to happen to the vehicle, it would actually be worth fixing, unlike most garage sale cars.

Long Term Disability Insurance – You are actually four times more likely to have a situation where you become permanently disabled than die before the age of 65. Everyone who has an income needs long term disability insurance. This insurance will help pay for your living expenses should you become permanently disabled. Specifically look for “own occupation” insurance which pays you if you cannot do your current job. It’s rather inexpensive and definitely needed.

Life Insurance – If you have a family or anyone else that depends on your income, you absolutely need life insurance. If you are a single person, you probably don’t need it. Get about eight to ten times your income in good 20 or 30 year term insurance. Term is always a better option than whole-life insurance, which should be avoided. This money will take care of your family should the unexpected happen to you.

Homeowners / Renters Insurance.- These two are absolutely necessary. They will pay for your house or contents of your apartment should a fire or a natural disaster happen to them. Most people would be in an extremely difficult place if they lost all of their possessions and had no money to start over.

If you hit these big 5 insurances, you’ll do just fine. There are a lot of other gimmick insurance types, such as cancer insurance, mortgage life insurance, and the like which you do not need. The only other type of insurance I would consider is dental insurance, which you really only need if you have a history of problems with your teeth. Be sure to get several different quotes for insurance, because the price will vary greatly from company to company.

Financial Planning Tips for Married Couples

Your finances change dramatically when you get married. You now have different sources of income as well as different expenses to consider, especially if you are just starting a home together. It is easy to get into financial trouble if you are not careful, thus it is extremely important to manage your money well, especially in this difficult economy. The following are some financial planning tips for married couples.
Make a budget

Making a budget might be the single most important thing that you do to protect your financial security. Many times people spend without realizing how much money things are adding up to. You should look at the income you have to work with and allocate different amounts to different things and try to stick to that. Make sure that the essential bills are paid first such as the food and rent and work your way down to less essential items. To avoid getting behind, make sure you account for overspending in an area by reducing the amount that you spend elsewhere. If you want something big, set aside money for it. You could set up a “fund” to contribute to every month until you have enough to pay for that extra special item. Also, account for money that you want to save for the future – money for children’s college funds, money for a home, money for retirement.

Communicate with Each Other

Make sure both parties understand what needs to be done with the finances. If one person is working hard to save the money and then the other person is just spending it, then that can cause financial problems as well as discord later. One person can deal mostly with it, but both people should at least understand the positions you are in. Make sure that you talk through financial issues that arise and that you are on the same page as to where you are and where you want to be.

Get professional help if you need it

Don’t be afraid to consult a financial planner to help you with your budgeting, especially if you have gotten yourself into trouble. Be wary of the people you get to help you as some individuals are taking advantage of people in bad positions. A financial planner may help you to spend and invest wisely and make the most of the money that you do have. Make sure you understand what he or she can do for you as well as any fees or costs.