Types of Insurance to Own

While everyone situation is unique, we believe the following types of insurance are critical:

  • Life insurance until one’s assets makes them self-insured. Term life is normally preferable as it is much less expensive than permanent or “whole-life” insurance.
  • Disability insurance to replace one’s income if we become incapacitated during our working years. Very important when only one person in the household has an income or one has a much larger income than their spouse.
  • Property and Casualty insurance for one’s home, cars, property. This should include flood and earthquake insurance as appropriate. Renters—don’t forget rental insurance for your personal goods.
  • Health insurance for obvious reasons.
  • Umbrella liability insurance to protect one’s assets in case of a lawsuit. Very important for those who might be targets of lawsuits (i.e. physicians, business owners.)
  • Long Term Care insurance as one gets into their later 40s and early 50s to help offset the high cost of extended care.
  • Permanent insurance for business buy-sell agreements as well as estate planning and occasionally as a supplemental investment vehicle. Seems contradictory to my first bullet, but really isn’t. Whole Life is a poor choice normally for income replacement, but it has its place for other purposes.

For a complete insurance needs analysis contact us or your financial/insurance professional.

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