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Insurance
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You need auto insurance to cover all your cars, trucks and other motor vehicles, and all the people in your family and staff who will drive them.
You need homeowners’ insurance for all your homes and get coverage for the unusual risks in your area, such as hurricanes in Florida and earthquakes in California. Also, get an umbrella policy to cover all the unusual events and accidents that can and will happen on your property.
Also, if you bought a home for $500,000 and insured it for $500,000, and it is now worth $1,000,000, your insurance company will only pay you $500,000 if it is destroyed. Check your home’s value and your insurance coverage at least every three years. Also, you may get a discount of 20% or more if you buy your auto and home insurance from the same company.
If you have financial dependents, such as elderly parents or a wife and several young children, you need life insurance. If you don’t have financial dependents, you don’t need life insurance except to help pay the estate taxes when you die. These taxes can be huge and they are complicated, so talk with your estate attorney and get more life insurance if you need it. A minimum amount would be about four times your annual income. Always buy whole life or universal life, not term.
Everybody needs health insurance, so get the best available. If you are eligible to join a group health insurance plan, do it.
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When you are 50 or over, look into Long Term Care insurance. You may decide you need it. It can be a real benefit for anyone who needs long-term nursing or assisted living care. The insurance can cover a person's expenses at home or in a nursing and extended care facility.
Peterson Money Books
Book: The Challenge of WEALTH, by Erlend Peterson, CFP
Managing the Joys, Responsibilities, and Opportunities
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