Basic Insurance

Some insurance you just cannot do without. Car insurance, for example. The law requires that you have it. Here are some other kinds of insurance:

Life Insurance. Purchase only insurance, no saving plan features, only insurance. Some riders may make sense but buy only those riders that actually affect the insurance. For savings and investments, life insurance is just about the worst vehicle there is.

Disability Insurance. Did you know that you’re more likely to get disabled than to die? Dave recommends that you buy enough insurance to replace 50% to 70% of your income.

Health Insurance. Dave’s book was written before Obamacare, so I’ll say this about health insurance. While the payments may go up, the quality of the insurance policy may go up, too. – At least what the Democrats think goes into a “quality” insurance policy. You may agree or disagree with them on what that is. The newspapers reported monthly premiums going to $500 per family. You doctor may not participate in some of these new government programs, so getting the insurance does not necessarily mean that you will get treated. You may have to look around and wait for doctors who will treat you.

Long Term Care. When your age gets to the late 50’s, your premiums goes way up. Best to get this kind of insurance in late 40’s to early 50’s. Dave recommends it if you’re over 60. My opinion is that over 60 know that the insurance companies are looking at the same cost calculations that you are and have priced their policies accordingly.

Homeowner/Renter Insurance. This posts addresses personal property.

I’ve seen a number of yard sales as old people try to unload their accumulated belongings. The plain fact is that for most household items, very little value will ever be recovered from them. Also, a lot of the junk you have you can do without. Sorry, but that’s the facts. Dave does not address this but I believe that you should just determine what you absolutely have to have in case your home/apartment building burns down and buy enough insurance to get that.

Note that real estate is another matter