This week's challenge is all about insurance and making sure you are well covered!
Having insurance can potentially save you a ton of money in the event of an emergency or unplanned life occurrence.
Having insurance means you can protect yourself from any major financial set backs related to unplanned life occurrences without having to impact your money plan. Not having insurance can completely wipe out any plan you may have put in place.
At a minimum, below are 3 types of insurance you need to have:
1. Health Insurance
The cost of health care is very expensive and so having health insurance, whether is offered through your employer or whether you have it privately, is a must.
Seeing a doctor can run you anywhere ~ $100 to $300 out of pocket for an initial consultation talk less of if you need a procedure done or require serious medical attention.
Having a baby, depending on where you are located, can run you any where from ~$5000 to $10,000 for a natural birth and upwards of ~$35,000 for a C-section.
Having health insurance allows you to get the right care when you need and reduce the financial burden of having to pay completely out of pocket for care.
2. Auto Insurance
This one is a given. Not having auto insurance in the United States is illegal and punishable by law. You must have auto insurance.
Secondly, not only does auto insurance cover the cost of your repairs incurred from a car accident after you meet the deductible requirements (whether it is your fault or not), it also covers the auto costs other party involved may have incurred.
It may also cover the cost of a car rental while your car is being repaired, the costs of any lawsuits that might arise from a car accident, the costs incurred from a collision with an uninsured driver as well as incurred hospital bills.
3. Renters or Homeowners Insurance
If you own a home or are renting your residence having renters or homeowners insurance is essential. It protects your home against damages to the house itself, or to possessions in the home including theft.
If you live in an area prone to flooding or other natural disasters, you can add on specific natural disaster insurance to your coverage to further protect your home. Imagine if you had to rebuilt your house or replace everything you have in your home out of pocket? That could be financially devastating.
Note: If you also own other property like a 2nd home or investment property they should also be covered under a homeowners’ insurance policy.
Other types of insurance to consider and do some research on are:
1. Life Insurance
Protects / helps your loved ones. The insurance company will pay out a sum of money upon your death or after a certain period of time.
2. Disability Insurance
To protect your income in the event that you cannot work for a period of time.
3. Personal Property Insurance
Provides coverage above and beyond typical homeowners' insurance to cover things like expensive jewelry etc.
4. Home warranty plans
A type of insurance that will repair and replace appliances and systems in your home as needed due to normal wear and tear e.g. air conditioning and heating systems etc
Your challenge this week is to use the downloadable worksheet to write down your current insurance coverage and any associated details as well as when your policy needs to be renewed.
- For any insurance gaps you identify, make it a point to reach out to an insurance provider to get coverage.
Tip: Compare prices and coverage options across different providers to make sure you are getting the best deal possible.
- Finally, ensure that your insurance premium payments are included in your budget.
P.S. Don't forget to share your progress in the Facebook group!
It's week 23 of The 26 week savings challenge!
This week, your savings deposit amount is $91.00
(If you've been consistent with your deposits, this week's deposit will bring your balance to $1081!)
- Make your transfer.
- Check off this week's amount on your savings challenge schedule.
- Share your progress in the Facebook group!
Note: This challenge will be on-going throughout this accountability program in addition to your other weekly challenges.