Finances: Insurance and Preparedness

This is part three of a series that falls more into the organizing your life for the future, not really the usual organizing the physical. But it’s something that I’m very passionate about and want to make all of you guys aware of the importance of being prepared.

Insurance chart: health, life, home, injury, property

It’s weird and it sucks to think about death. But being prepared is much preferred to being surprised by any tragedy. As you guys know, I work in the legal field, so I am obligated to mention that you have to have a will and powers of attorney, both for property and healthcare. HAVE TO, HAVE TO, HAVE TO. Rant over. Let’s just talk about the big picture, long term insurances: house insurance, life insurance, and disability insurance.

I had been getting two policies on my condo that I rent out: a homeowner’s insurance bill in January and a renter’s insurance bill in late June. When I got this most recent one, I sent an email to my insurance guy and asked him to clarify why I have homeowner’s insurance and renter’s insurance. Within 5 minutes of the initial email, he said that the homeowner’s policy should have been closed out and I’ve been paying for two years unnecessarily. Luckily, he spoke with underwriters and they sent me a full refund for all of the money I paid on that account. That is hundreds of dollars saved with a quick email to my company (and who knows how much more I would have paid in the future!).

Your job or spouse’s job may offer life insurance or disability insurance. Talk to HR and take a look at the deductions on your pay stubs. My job offers standard life insurance with an election for more and disability, sometimes not until you’ve been working for X amount of time. After getting pregnant, we knew that we needed more life insurance. So we met with a financial adviser (more on that in another post), who encouraged us to get additional disability insurance on the husband since he is the main money maker. You may or may not need more than what your job offers. But keep it in mind as an option, especially for the breadwinner in the house.

You never know what life will throw at you. You need to be prepared for anything! Contact me today if you need help getting prepared for anything!

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