7 Required Types of Insurance7 Required Types of Insurance
Reduce the Risk in Your Financial PlanReduce the Risk in Your F...
What is the Role of Insurance?What is the Role of Insurance?
August, 2013 27 Required Types of Insurance - www.figueroafin...
1. Home/Renters Insurance1. Home/Renters Insurance
 Your home is your most valuable asset so
you need to ensure it is prop...
2. Auto Insurance2. Auto Insurance
 You should have both liability
and collision coverage on your
vehicles.
Having at leas...
3. Health Insurance3. Health Insurance
This is one of the most critical areas to
have the proper coverage. Medical bills
a...
4. Long Term Disability Insurance4. Long Term Disability Insurance
This is the type of insurance that
would replace your i...
5. Identity Theft Insurance5. Identity Theft Insurance
Identity theft is one of he fastest growing
crimes in the U.S. Over...
6. Life Insurance6. Life Insurance
If you have anyone depending on your
income, you need to make sure they will
be taken c...
7. Long Term Care Insurance7. Long Term Care Insurance
This is the insurance that would pay for
the expenses in a retireme...
About the AuthorAbout the Author
José R. Figueroa is a Personal Finance
Coach/Blogger @ Figueroa Financial:
Help and Hope ...
Figueroa Financial: Contact InformationFigueroa Financial: Contact Information
Website: www.figueroafinancial.com
e-mail: ...
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7 Required Types of Insurance

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7 Required Types of Insurance

  1. 1. 7 Required Types of Insurance7 Required Types of Insurance Reduce the Risk in Your Financial PlanReduce the Risk in Your Financial Plan José R. FigueroaJosé R. Figueroa August, 2013August, 2013 www.figueroafinancial.comwww.figueroafinancial.com
  2. 2. What is the Role of Insurance?What is the Role of Insurance? August, 2013 27 Required Types of Insurance - www.figueroafinancial.com In simple terms, insurance is the tool that is designed to protect you and your family against what might happen. When you have the right level of insurance coverage in place, you are transferring the risk to another entity (an insurance provider) and you pay a premium for that risk transfer. If you think about it, insurance works like an umbrella works when it rains. The umbrella does not stop the rain, but it keeps you from getting wet. Likewise, having the proper insurance won’t stop an event, but it will help you weather the storm and minimize the impact to your finances. Let’s talk about the 7 required types of insurance you need.
  3. 3. 1. Home/Renters Insurance1. Home/Renters Insurance  Your home is your most valuable asset so you need to ensure it is properly covered. Be sure that you review your policy on a regular basis so the coverage you have stays in step with the value of your home. Another option is to look for a policy that provides “guaranteed replacement cost” for your home. This type of coverage is rare these days but you should still look for it. If you are renting, you also need to have the proper coverage on your assets to cover against the loss due to theft or fire as an example. August, 2013 37 Required Types of Insurance - www.figueroafinancial.com
  4. 4. 2. Auto Insurance2. Auto Insurance  You should have both liability and collision coverage on your vehicles. Having at least liability coverage is a legal requirement in the U.S. August, 2013 47 Required Types of Insurance - www.figueroafinancial.com
  5. 5. 3. Health Insurance3. Health Insurance This is one of the most critical areas to have the proper coverage. Medical bills are consistently a leading cause of personal bankruptcy. In order to save in your premiums, you can increase your deductible and/or co-insurance amounts. You should also evaluate if a Health Savings Account (HSA) might be a good option for you. The HSA is a tax-sheltered savings account for medical expenses that works with a high deductible insurance policy. August, 2013 57 Required Types of Insurance - www.figueroafinancial.com
  6. 6. 4. Long Term Disability Insurance4. Long Term Disability Insurance This is the type of insurance that would replace your income if you were to be disabled from working for an extended period of time. The best deal in this area is when it is offered by your employer at a discounted rate. You need to look for a policy that is designed to replace 65% of your income. August, 2013 67 Required Types of Insurance - www.figueroafinancial.com
  7. 7. 5. Identity Theft Insurance5. Identity Theft Insurance Identity theft is one of he fastest growing crimes in the U.S. Over 200 million people have had their identities compromised in a data breach since 2005. The best type of identity theft coverage not only monitors for identity theft but also assigns a counselor/specialist to deal with the restoration services on your behalf. If your identity is stolen, the biggest and most time-consuming problem is dealing with creditors to restore your good name. August, 2013 77 Required Types of Insurance - www.figueroafinancial.com
  8. 8. 6. Life Insurance6. Life Insurance If you have anyone depending on your income, you need to make sure they will be taken care of in case something happens to you. The recommended coverage amount is 8 to 10 times your annual income. The preferred option is to have 20 to 30 year Term Life insurance. It is a less expensive option than Cash Value or Universal /Whole Life type of insurance. The industry is very competitive so if you are healthy you should be able to get great coverage for a great price. August, 2013 87 Required Types of Insurance - www.figueroafinancial.com
  9. 9. 7. Long Term Care Insurance7. Long Term Care Insurance This is the insurance that would pay for the expenses in a retirement home, at an assisted living facility, or for in-home care. These expenses are very high and if not covered could quickly eat through your retirement nest egg. 69% of people over the age of 65 will require long-term care at some point in their lives. You should put this insurance in place for yourself as soon as you turn 60 years old. Be sure to include a cost-of living rider and that the pay-out period is “until death“. August, 2013 97 Required Types of Insurance - www.figueroafinancial.com
  10. 10. About the AuthorAbout the Author José R. Figueroa is a Personal Finance Coach/Blogger @ Figueroa Financial: Help and Hope for Your Finances. He is also the author of the e-books 7 Principles for Financial Success and Not Mine, Not Yours, But Ours now available @ Amazon. August, 2013 107 Required Types of Insurance - www.figueroafinancial.com
  11. 11. Figueroa Financial: Contact InformationFigueroa Financial: Contact Information Website: www.figueroafinancial.com e-mail: jose.figueroa310@gmail.com Facebook: www.facebook.com/figueroafinancial Twitter: https://twitter.com/FigueroaFin Linkedin: http://www.linkedin.com/in/jrfigueroa Google+: https://plus.google.com/u/0/b/111459341392513036380/111459341392513036380/posts Pinterest: http://pinterest.com/jfigueroa310/financial-coaching/ August, 2013 117 Required Types of Insurance - www.figueroafinancial.com

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