Today we will cover the dreaded discomfort zone known as insurance. People who want insurance and can’t get it, and people who have it can’t use it… so then why do we need it?

We need insurance for insurance…

Let’s take medical insurance as an example:

It’s actually against the law right now not to have medical insurance, and you can get fined for it. Or lets look at auto insurance.

Auto insurance is a must.  If you’re stopped by a policeman and cannot produce auto insurance, you’re in trouble. There are others that are not mandatory but are probably a good idea to invest in….

One underused insurance that’s probably needed is renters insurance. It covers you for the things you own. So, let’s say you have a brand new sofa, stereo equipment, a 52” screen TV, and a refrigerator. You put a value on those things and you call up your insurance company.

Another one that’s important is life insurance. We do this so that when we die, somebody we love might get some money or others like a credit card company or a debtor will get paid off from your life insurance. And I believe it’s good to get life insurance at a very young age, I think you should always think ahead.

There’s Whole Life and there’s Term Policies. Term Policies are normally cheaper while Whole Life gives you something like a savings account. Also in the insurance industry they have something called Long Term Health, those of us who are 65 and older know what that means.

That means that if you fall down and you need to be in a care facility for a couple of months you have insurance to pay for a part of that.

There’s also minimums and maximums and there’s all kinds of rules on them… I got my long term health care policy in my 40s and my premium has been pretty low because of that.

So, if you’re in your 40s and 50s and you’re listening to me, look into long term health.

Now, you must be wondering: do all these insurances cost a lot of money? Yes they do and sometimes you can be “insurance poor”. That basically means you’re paying so much in premiums but you don’t really have the money to do so.

What I would like to do going forward is to go more in depth on each of these insurances for you to learn how to prioritize which ones are the most important ones for you…