Money 101: All About Insurance
We know, we know: What does insurance have to do with managing your money? More than you might think.
Insurance works hand in hand with your emergency fund to have your back when unpredictable events happen.
None of us ever plan on accidents or injuries, but if they happen, insurance helps take away unnecessary stress from the situation and softens the financial blow.
There are lots of different types of insurance, and many of the basic policy options are outlined below. Check on your current coverage policies and if necessary, buy the insurance you need or make updates to make sure you’re covered, just in case.
| INSURANCE TYPE | DETAILS | Qs TO ASK YOURSELF |
| Life Insurance | Life insurance helps provide income for your dependents and other loved ones in case of your passing. | Do you have any life insurance? Do you have enough to support your family? |
| Health Insurance | Health insurance helps cover medical bills. Most of the time, basic coverage pays for preventative care and checkups. If an illness or injury strikes unexpectedly, your health insurance will help pay at a percentage, typically 80%, once you’ve hit the deductible amount on your plan. | Does your current plan make sense for your family's health needs? For example, if you have pre-existing conditions, choosing a plan with a higher monthly premium but a lower deductible might save you money in the long run. If you rarely seek medical help aside from annual checkups, paying less per month and taking out a higher deductible might be a good option. |
| Auto Insurance | Auto Insurance is there to potentially help pay for damages to your car and for injuries to you and your passengers that occur during vehicle accidents. | Can you increase your deductible to reduce your premium? Do you have enough in your emergency savings to cover the deductible in case of an accident? |
| Disability Insurance | There’s both short-term and long-term disability insurance. It helps provide income to replace part of your income you may lose if an accident or illness disables you. Short-term disability covers you for three months or less, and long-term disability lasts years. | Do you have disability insurance through your employer? Is it short- term or long-term coverage? Do you have money in your emergency savings to pay your expenses during a short-term disability? |
| Homeowners Insurance | Homeowners Insurance pays for damage to or loss of your home and your belongings. | Do you have enough coverage? Does it offer replacement coverage? |
| Renters Insurance | Renters Insurance pays for damage or loss of your covered belongings while you’re renting a home or apartment. | If you rent, do you have insurance to protect your personal belongings? |
| Long-Term Care | Long-Term Care Insurance pays for nursing homes, home health care, or other services for seniors or people with disabling conditions. | Have you reviewed your future health insurance needs? |
| Umbrella (Personal Liability Insurance) | This coverage supplements the liability insurance carried under auto or dwelling policies. | Is this coverage something you need? |