FPU Lesson 6 – The Role of Insurance
Insurance is a topic that few people enjoy, but its presence during key points of our lives can have a huge impact. It’s financially vital to understand and purchase the right kinds of insurance. Failing here can have huge repercussions. Below are my notes from the lesson, including the key points that I highlight from the video when leading the class, and some supplemental material that I think could help the class go further on this topic.
Lesson 6, The Role of Insurance
Understanding and having the right insurance is playing good defense for your wealth. Insurance is all about transferring risk. Your emergency fund and monthly budget needs to be in place to manage the small stuff, but a medical emergency can devastate your savings. Pay a little every month in insurance to cover the possibility of a future crisis.
Learn the types of insurance you really need and get it now! There are so many kinds of insurance out there, but only a few of them are really necessary. The rest are a waste of your money. Cover the core risk areas, avoid the fluff.
Don’t fail to leave a legacy. Get a will. 70% of Americans die without a will, don’t be one of them. Setting up a will is neither expensive, nor difficult, so there isn’t a good excuse. Don’t leave your family in the lurch.
Check Your Options. Your employer may not be the best way to get your insurance. If you lose your job, you can lose your health or life insurance. Plus, you might be able to get a better deal by shopping around.
Check Your Credit Report. Review your credit report at least once a year. You can go to annualcreditreport.com, choose your state, click ‘Request Report’ and follow the simple steps to get a current free credit report from one of the three credit agencies.
Next week: Lesson 7 – Retirement and College Planning
Sorry, the comment form is closed at this time.