You
could spend your entire salary on
different types of insurance, especially
if you listen to insurance brokers.
Still, insurance is important because
it protects things that are important
to you: your home, your kids, your
health. Buying the right kind and
the right
amount of insurance is the key
to success.
If you have a spouse
and kids who count on you, you
need life insurance to cover their
expenses. On the other hand,
you don't need life insurance
at all if you don't have dependents
and don't care about leaving money
to anyone else.
Even stay-at-home spouses should have life insurance coverage to cover, for example, the cost of a nanny to watch the kids. Life insurance comes in all shapes and sizes, but most people can get by with inexpensive plain-vanilla term life insurance.
Then there's disability and long term care insurance.
Being disabled or needing
long term care is frightening
and frightfully expensive if you
don't have these kinds of policies.
Disability insurance gives you
money to live on when you can't
work, but not so much that you
don't ever feel like going back
to work.
Long
term care insurance pays for
someone to take care of you, sometimes
in your own home and sometimes
in a care facility. The good news
is savvy
insurance shopping can save
you thousands in insurance premiums.
