Insure Against Risk
- Purchase insurance for large financial risks that could deplete your savings or future earnings.
- Have at least $300,000 ($500,000 is better) of liability coverage on property insurance policies to cover the risk of court judgments resulting from an accident at your home or with your car, and disability insurance to protect against the loss of income due to illness or injury.
- Health insurance is also a top priority, especially for young adults who are dropped from their parents’ policy. If health benefits are not immediately available through an employer, an individual policy should be purchased to avoid gaps in coverage.
- People with dependents who would suffer financially if they died should purchase life insurance.
- Everyone who owns or rents a home should have property insurance or renter’s insurance with a replacement cost rider on personal property to replace items at their current cost up to the policy limit.
Keep Coverages Up-to-Date
- Establish an ongoing relationship with one or more insurance professionals or financial advisors who can provide a periodic review of your coverage and information about available options.
- Insure for major losses with policies that provide broad coverage. For example, purchase a major medical policy with a high lifetime limit rather than cancer insurance that covers just one disease.
- If you switch jobs and are not immediately covered by a new employer’s health-care plan, consider purchasing COBRA benefits to extend group coverage from your previous employer.
Cut Insurance Costs
- Consider the following strategies to decrease the cost of insurance premiums: longer elimination periods (for disability insurance) and higher deductibles (for auto and health insurance).
- The trade-off with lower costs is higher out-of-pocket costs if losses occur and benefits are needed.
- Other cost-saving tips are shopping around for insurance (compare at least three competing insurers), inquiring about available policy discounts, paying premiums annually instead of monthly or quarterly, and buying multiple policies from the same insurance company.
Insure Against Risk
- Purchase insurance for large financial risks that could deplete your savings or future earnings.
- Have at least $300,000 ($500,000 is better) of liability coverage on property insurance policies to cover the risk of court judgments resulting from an accident at your home or with your car, and disability insurance to protect against the loss of income due to illness or injury.
- Health insurance is also a top priority, especially for young adults who are dropped from their parents’ policy. If health benefits are not immediately available through an employer, an individual policy should be purchased to avoid gaps in coverage.
- People with dependents who would suffer financially if they died should purchase life insurance.
- Everyone who owns or rents a home should have property insurance or renter’s insurance with a replacement cost rider on personal property to replace items at their current cost up to the policy limit.
Keep Coverages Up-to-Date
- Establish an ongoing relationship with one or more insurance professionals or financial advisors who can provide a periodic review of your coverage and information about available options.
- Insure for major losses with policies that provide broad coverage. For example, purchase a major medical policy with a high lifetime limit rather than cancer insurance that covers just one disease.
- If you switch jobs and are not immediately covered by a new employer’s health-care plan, consider purchasing COBRA benefits to extend group coverage from your previous employer.
Cut Insurance Costs
- Consider the following strategies to decrease the cost of insurance premiums: longer elimination periods (for disability insurance) and higher deductibles (for auto and health insurance).
- The trade-off with lower costs is higher out-of-pocket costs if losses occur and benefits are needed.
- Other cost-saving tips are shopping around for insurance (compare at least three competing insurers), inquiring about available policy discounts, paying premiums annually instead of monthly or quarterly, and buying multiple policies from the same insurance company.