Insurance for when you are no longer BROKE


Insurance

We talk a lot about those who are broke, but for those who have done the hard work to pay off their debts and improve their finances, you must now take time to protect them.

You as a non-broke person will now need the following (some are new and some you should alread have):

***Child birth insurance:

Also known as condoms and birth control and keeping it in your pants. This can save you over $240k over a 17 year period.

***Gold digger insurance (male or female):

Also known as prenups, trusts and avoiding legal marriage altogether

***Car Insurance:

Bodily injury- $100k per person/ $300k per accident

Property damage liability: $100k

Uninsured/Underinsured bodily injury: 100k per person/ $300k per accident

***Renters/Homeowner’s Insurance: enough to cover all potential damages to rebuild or replace the covered items.

***Personal Umbrella Policy: $1million dollars in additional/supplemental coverage. Normally used as protection in a lawsuit.

Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowner’s, auto, and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies. These may include, but are not limited to:

False arrest

Libel

Slander

Invasion of privacy

***Business Owners: your business entity is a form of insurance. An LLC can shield your personal assets and works best with a personal umbrella policy. For landlords who were smart enough to place their properties inside of an LLC, landlord insurance is a benefit as well. There are three additional insurance policies most businesses should have as part of a a BOP (business owner’s policy) more to be discussed in http://www.BKFBusinessSchool.com

***Life Insurance: Renewable 20-30 year TERM insurance. Stay the unholy hell away from Whole Life or annuities of any type.

The purpose of this insurance is to hold you over until you can become self-insured by your assets.

The renewable clause in a term life insurance policy means that the insuring company will allow you to renew your policy at a set rate without undergoing a medical. This means that if an insured person is diagnosed with a fatal disease just as the term runs out, he or she will be able to renew the policy at a competitive rate despite the fact that the insurance company is certain to have to pay out.

Look to obtain 8-10 times your annual income as an insurance payout.

***Medical Insurance: There are a ton of variables with medical insurance. Main thing to know is that most medical insurance in the U.S. sucks hot lava balls.

With that being said, it still beats being uninsured any day of the week. As well, you need to avoid all of the hoopla on high deductible insurance – it doesn’t work for those who need it the most.

A good rule of thumb is to keep a low deductible ($500 or below) keep atleast 20/80 co-insurance, keep your co-pays for regular doctors visits around $20-$30 and below. You’ll also need a policy with a max out of pocket clause.

Supplemental health insurance (Aflac) and dental insurance are good bets as well.

***Long term care insurance: A nursing home can cost about $74,208 a year per person. If you and your spouse go into an assisted living facility with $300,000 in life savings, you’ll have it used up so fast you won’t believe it.

You can save yourself a good portion of that liability by purchasing a long term car insurance policy though it could run you about $4,000+ a year. If you are approaching 60, start looking at long-term care insurance. Don’t buy it before then (it’s not necessary enough at that point) or after (it can get away too expensive).

Remember, rich people and poor people don’t need long-term-care insurance. Poor people can turn to Medicaid. Rich people can self-insure. So the question comes down to those in the middle.

http://www.kiplinger.com/article/insurance/T036-C000-S002-long-term-care-insurance-for-less.html

***Did I mention child birth insurance?

Also known as condoms and birth control and keeping it in your pants. This can save you over $240k over a 17 year period.

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