An Insurance Primer
posted by Judith Stephens
It is a good idea to use insurance as a hedge against assuming significant financial risk. Do you know what the most important types of insurance coverage that you need? Are you adequately covered? How can you insulate yourself from excessive risk during these times of financial stress?
Kevin Gear, The Money Hawk, has written an interesting post on Five Insurance Policies You Must Carry To Avoid Financial Disaster. Learn what coverage you need to maintain, especially if you’re thinking about letting any of your policies expire because of the cost. Thanks Kevin for sharing this information.
Are there different policies you think should be on the “must have” list? Let me know what your experiences suggest. Thanks!
Warmly,
Judith
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November 18th, 2008 at 1:26 PM
Those 5 suggestions seem pretty sensible. Interesting to see mortgage insurance is not on the list.
November 19th, 2008 at 11:03 PM
As a nerdy accounting student, I think it’d be fun to get ahold of some actuarial tables and statistics, and see how statistically likely these things are. Of course, with most of them, the key issue is that no matter how unlikely it is, the cost if it DID happen is too much to risk.
I had a finance professor who’s theory was that through his own actions he could reduce his risk of causing an accident (by not driving when sleepy, always following the laws) and so would only pay the very minimum insurance. (He would have paid $0 insurance if it was legal and his wife let him, haha.)
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December 13th, 2008 at 1:33 AM
Your professor is right. We can decrease the probability of causing accidents. However, insurance is also about protecting us from the risks involved with other drivers on the road. We have little/no control over their actions.
December 13th, 2008 at 1:36 AM
Probably because many people rent their spaces. They need renters, instead of mortgage, coverage.
September 30th, 2009 at 5:28 PM
Hey, love the blog – i will try and keep up with it!! please keep more coming
November 9th, 2009 at 4:13 PM
Very Stellar information. I think im gonna stick around and read one of your posts. greets
December 20th, 2009 at 8:22 PM
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