Insurance Every Man Should Have

Every man should have a plan for what they will do in the event of an emergency or disaster. Filling that role is insurance, which helps put money aside to bridge those gaps between today and tomorrow.

The “insurance policies” is a type of contract that protects people from financial loss in case they are injured or die. These contracts can be purchased to protect against events such as death, disability, and injury.

Note from the editor: This is a guest article by Jeff Rose.

I could immediately feel my knees and lower back suffering the day we were given our IBAs (Interceptor Body Armor or Flak Jacket). It was more than inconvenient to haul an additional 16 pounds about with us wherever we went, on top of all the other stuff we were given.

However, given the nature of the situation–we were at war–it was unavoidable. The Kevlar on our IBAs and helmets, as well as our heavily armored humvees and guns, were all meant to protect us. Or, to put it another way, protection.

I despised wearing that silly combat vest for the whole year I was in Iraq. It was heavy, it was hot, and it was just plain obnoxious. Regardless of my thoughts about it, I couldn’t dispute that it saved lives. It was a “necessary evil,” as they say in the military.

The same principle applies to insurance.

Raise your hand if receiving an insurance premium bill in the mail is something you look forward to? No, I don’t believe so.

There are certain types of insurance that you just cannot go without. All states need vehicle insurance, homes insurance if you have a mortgage, and any parent will tell you that medical insurance is essential.

Insurance, let’s face it, is a “necessary evil.”

With growing expenses affecting all of these critical safeguards, it pays to stretch every dollar as far as possible.

Here’s a rundown of the several forms of insurance that every guy should have.

Automobile Insurance

Because you don’t have an option but to obtain auto insurance, you may as well search around for the best cost. I understand that there are several advertising attempting to persuade you to switch providers, but before you do, compare what you are now receiving with what they are giving. Companies routinely “save” you money by giving less coverage; this is hardly a savings in my opinion. Insurance companies will almost always match any reasonable deals you discover if you shop around and do so early.

Raising your deductible is the fastest and simplest method to lower your rates. You may save 30% on your insurance costs by raising your deductible from $200 to $500. Make sure you have enough money saved up in case you have an accident and need to pay the higher deductible.

Inquire about special offers. Good grades or completion of specific kinds of driver’s education programs frequently result in a discount for teen drivers. You may be qualified for a low-mileage deduction if you don’t travel much or if your employment is just a few miles away.

Also, talk to your insurance agent before buying a new car so you know which automobiles are less expensive to insure. Some companies provide reduced deductibles for each year without a claim, so be sure to ask questions since it might save you money in the long run.

Insurance for Homeowners

Raising your deductible on homes insurance, like increasing your deductible on vehicle insurance, can lower your costs. Customers who buy several policies with a company often get discounts, so combine your vehicle and homes insurance to save money.

In the event of a calamity, just insure your house, not the land, for replacement expenses. Many individuals lose money as a result of this typical blunder. You won’t have to rebuild the land; just the structure will need to be replaced, so double-check your policy to be sure you’re only insuring what you need.

Another option is to stick with a firm for the long run, since they may give loyalty discounts. Improving the security and catastrophe resistance of your house will usually result in some tax benefits.

Other Errors to Avoid

Failure to Purchase Adequate Homeowners Insurance: Many houses today are underinsured. There are several reasons for this; nonetheless, you do not want to be in this situation in the event of a crisis. An “inland storm” blasted our neighborhood, causing millions of dollars in damage to our town. I’ve heard a lot of horror tales of homeowners who didn’t have enough insurance and were stuck paying all of the fees to have their house restored on their own.

When changes are made to the policy, there is no effort to update it. This is one of the reasons why properties are underinsured. It’s a good idea to examine your policy if you make any substantial changes to your house to ensure you have enough coverage.

Not having a current house inventory: We had to send most of our personal belongings via a Connex when we returned home from Iraq. In the event that anything was lost or destroyed, we were expected to compile a complete account of everything in our tote boxes. Have you done something similar with your home’s content? The majority of homeowners haven’t.

You could only get a portion of the value if you don’t have an inventory. Take a walk-through video of your house and speak about the major objects to avoid this. A list of the cost and replacement value of each item, as well as photographs, will be required. Uploading your walk-through video to YouTube (with private settings, please–no there’s need to expose all of your valuables in your house to burglars!). That way, even if your home is entirely destroyed, you’ll always have the video.

Medical Coverage

Private medical insurance is just out of reach for many individuals. Before you throw up your hands in despair and walk away, keep in mind that a large medical cost might bankrupt your family. Something is preferable than nothing. Many states now provide basic health insurance depending on income levels; for more information, contact your state offices.

If you have insurance but are having trouble paying for it, upping your deductible may help. Examine your company’s benefits and see if you can acquire insurance via your job. Compare health plans and make sure you’re comparing apples to apples, even though many policies have convoluted terminology. Also, take advantage of health savings accounts, which allow you to set money away tax-free to pay for medical bills.

We’ve been covered on my wife’s plan via her employment since I started my own company a couple years ago. We were obliged to purchase private insurance since she recently decided to be a stay-at-home parent. What a unique opportunity!

To make sure we received precisely what we wanted, we phoned several local brokers and also utilized eHealthInsurance.com. We eventually found what we were searching for after a lot of note-taking, phone calls, and asking a lot of questions.

Maintaining a close eye on your insurance pricing and alternatives can save you money both now and in the future. The idea is to browse around and compare prices.

Note from the Editor: Confused about how health insurance works? Take a look at our Young Man’s Health Insurance Guide.

Insurance for life

According to a recent survey, approximately 35 million households in the United States have no life insurance at all. None. Nothing, nothing, nothing, nothing, nothing, nothing, nothing, nothing, nothing, nothing, nothing, nothing Really?

When it comes to life insurance, how can you determine whether you need it? If someone would be financially harmed if you died, you will very certainly need it.

If you don’t have life insurance, accept the fact that you are not Superman! You should get accustomed to the concept that you will die since there is a near-certainty that you will.

The majority of individuals do not get life insurance because they believe it is too expensive. That is not the case! For the price of six In-N-Out Double-Doubles every month, a healthy 35-year-old man can acquire $500,000 in term insurance for 20 years. While you won’t experience the same instant thrill while making the payment, you can rest easy knowing that your family is safe.

If you believe you’re safe because your employer provides life insurance, think again. What if you lose your job or have to move jobs? Now you’re in danger of your new company not providing it, forcing you to look for it on your own. It’s preferable to acquire a 20- or 30-year term life insurance policy now rather than later, so you’re never in that situation.

Types of Insurance Suggestions

While the forms of insurance stated above are ones that every guy should have, the following two plans are ones that I know not everyone would choose, but that I highly suggest.

Insurance for People With Disabilities

While I was readily persuaded that I required all of the aforementioned insurances, I was originally hesitant to get disability insurance. I tried to persuade myself that I didn’t need it, but numbers don’t lie. Take a look at these figures:

According to the National Association of Insurance Commissioners, one out of every seven employees would have a five-year or longer period of disability before becoming 65, and if you’re 35 now, your odds of suffering a three-month or longer disability before turning 65 are 50 percent (NAIC). The number is 44 percent if you’re 45 years old.

Do You Need a Lot of Disability Income Insurance? The key to estimating your requirements is to calculate how much you’d have to spend each week or month that you wouldn’t be able to earn your regular wage. For example, if you need 80% of your pretax earnings but your group insurance only pays 60%, you may want supplementary coverage.

Because disability insurance might be complicated, it’s crucial to ask the appropriate questions. The main questions to consider when acquiring an insurance policy are addressed in this article from the New York Times. Listed below are a few examples:

If I become handicapped, what proportion of my income will you replace?
Will you pay for bonuses or commissions in addition to a basic salary?
Is it possible for the payment to increase when my salary rises in the future?

I took care to look around and compare benefits before acquiring my long-term disability coverage. One of the firms I looked at would only provide me with a monthly benefit that was 40% less and premiums that were twice as expensive. So, certainly, it is worthwhile to shop about.

Policy Under the Umbrella

How many times have you been caught in a scenario when a sudden rain has left you soaking and wishing you had an umbrella? Too many for me. An umbrella insurance will provide you with additional coverage and keep you “dry” in the event of a big tragedy.

This is how it works. An umbrella insurance policy is simply a supplement to your current auto and house insurance plans. They provide additional protection in the case of an occurrence that isn’t entirely covered by your regular insurance. Umbrella plans fill up the gaps created by other insurance policies.

Let’s imagine you’re sued for culpability in a vehicle accident and a $500,000 judgment is entered against you, but you only have $200,000 in liability insurance. Unless you had umbrella coverage, the balance of the money would have to be paid out of your own pocket. Without the extra umbrella insurance protection, you risk losing all of your assets, including your house, to pay off your existing obligations.

Consumers often misunderstand personal umbrella insurance products, which are frequently surrounded by misconceptions, causing them to overlook the benefits of having extra coverage when they need it most. The amount of individuals I meet who don’t grasp the fundamentals and advantages of umbrella plans astounds me.

Umbrella insurance plans are regarded to be too costly for average-income customers to buy, as well as too hard to integrate with existing insurance coverage. However, for many families, the increased safety of an umbrella coverage may be just what they need.

Some instances from actual life. Using real-life scenarios, it’s simpler to demonstrate how an umbrella policy might operate. According to a CBS MarketWatch report, there are numerous examples that are fairly prevalent. Here are a few scenarios that might easily occur to anybody.

You hold a party at your house with booze and youngsters in attendance. Without your knowledge, the child consumes a couple alcoholic beverages before driving home and causing an accident. Even if you didn’t offer the booze, you might be held liable.
You’re chaperoning a group of young children on a school trip to a park when one of the children is hurt. The child’s parent argues that your child dislikes their child, which is why you allowed him to be wounded.
You’re traveling home from work when you crash with a corporate vehicle with high-value machinery.
Your youngster borrows a friend’s vehicle and drives to McDonald’s for a quick bite to eat. In their haste to get back, they run a stop sign and collide with a minivan carrying a family of four.

The correct umbrella coverage may be able to protect you from the aforementioned events.

What is the price? The cost of $1 million in coverage should be roughly $150-$200 per year (my was $180). You should budget an extra $100 for each additional $1 million in coverage.

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Do you believe you’re a lesser guy because you have insurance? Don’t. One IED exploding or a bullet zipping by in Iraq was all it needed to realize the security we had with our kit. Make sure you’re adequately insured so you don’t get caught off guard.

Jeff is a Certified Financial Planner in the state of Illinois and the creator of the blogs Good Financial Cents and Soldier of Finance. He’s the father of three amazing sons, the spouse of the best woman on the earth, an In-N-Out Burger addict, and a Crossfit addict.

The “health insurance” is a type of insurance that covers the medical costs associated with any health-related issues. Many people in America have access to it, but not everyone does.

Frequently Asked Questions

What type of insurance must everyone have?

A: The type of insurance most people must carry is liability. This means that if someone gets injured because you didnt look both ways before crossing the street, its on your conscience for letting them down and potentially causing harm to them. Liability insurance also covers legal defense costs during criminal prosecution in case there are any accidents resulting from negligence.

What is the most important insurance to have?

A: Life insurance is a policy that promises benefits to your beneficiaries if you die during the term of the policy. It does not cover death due to natural causes or suicide.

What are the 7 main types of insurance?

A: There are many types of insurance, but the 7 main ones that you will hear used most often are auto insurance, homeowners insurance, life insurance and health care.