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Weekend Challenge 5: Insurance Check Up

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This weekend the challenge is to do a simple insurance check up. This is your opportunity to make sure you have the right types of insurance and enough insurance coverage. Insurance is how you protect your assets. It is important that you have adequate coverage. Comparing insurance rates from several companies can save you money, if you do it periodically.

1. Health Insurance

Health insurance is one of the most basic types of insurance. Everyone should have health insurance. Medical debt is one of the leading causes of bankruptcy. If you are healthy and your employer does not offer insurance it can be tempting not to get health insurance, but you are running a big risk. At the very minimum you should have a high deductible insurance plan with a health savings account

2. Car and Renter’s or Home Insurance

Car insurance is required by law, if you own a car. You should have enough to pay for car repairs in the event of an accident. You should also have enough to protect your assets in the event that you are sued. It is important to have home owner’s insurance if you own your own home. This insurance should be for the value of your property plus the possessions that you own. Your renter's insurance policy can help protect you from theft. It is important to pay attention to the electronics clause in your policy to make sure they are really covered. You can reduce your premium by shopping for a new policy every few years, especially if you have a good driving history.

3. Life Insurance

If you are single without children you should be able to get buy with minimal life insurance. You should have enough to cover your burial costs so that  they do not fall on your family. The policy that your work offers should be adequate. If you have children or if you are married you should have more life insurance. Eight to ten times your annual income is a good amount. It will allow your loved ones to live oof of the interest. Term life is a better option than whole life insurance. You should purchase your policy separate from your work policy.

4. Disability Insurance

The final insurance that you ought to have is long term disability insurance. This insurance will provide you with income in the event that you can no longer work. You should look for coverage that will provide you with the current level of income you currently have. It is important to carefully read your policy to make sure most types of disabilities are covered and how long the insurance payout will last if you do become disabled.

5. Other Types of Insurance

There are other types of insurance available to you, but you should carefully weigh the cost against the benefits that you receive. You can learn more about these insurances and make the decision on your own. 

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  6. Weekend Challenge 5: Insurance Check-Up

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