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Hello, Dinero Pros. So glad you are visiting today! Today I want to talk about the top 5 insurance policies everyone should have. I will leave auto insurance out of this list because it’s almost impossible to drive without car insurance. If you don’t have car insurance, however, do yourself a huge favor and purchase a policy.

Another thing I want you to understand is that insurance is not meant to make you money. It is a product intended to help in case of an emergency. 

1. Health Insurance

In spite of the political debate about whether the government should or shouldn’t subsidize health insurance, the reality is that you’re going to need it. Do not wait any longer! One of the top reasons people declare bankruptcy or end up in massive debt is due to health issues or accidents that leave them with a large hospital tab.

The great news about being a millennial is that although it can cost a couple of hundred dollars, health insurance for you is cheaper when you’re younger and healthier. If you have a job, the deal is even better. Most employers include this great feature for all their employees.

Due some diligence and make sure your company’s health insurance provider and their package align with your needs. As is most often the case, employers will opt in for the cheapest and affordable insurance package. So if you have children or a pre-existing condition, your employer’s insurance might not be enough.

Being married, young, healthy and the fact that my wife works for a foundation that specializes in healthcare, we have enough coverage to weather any health emergencies. But if you are self-employed or any of the characteristics previously mentioned apply to you, then you might want to consider buying additional coverage.

The neat thing about additional coverage is that it follows you no matter what happens with your current job. If you get laid off for a certain amount of time, at least you will be covered. Whereas as if all you have is your employer’s insurance, once you leave the coverage will disappear as well.

2. Life Insurance

Does your spouse, children or anyone else depend on your income? Then you need life insurance. This type of insurance will protect your loved ones if you pass away. I know that most of us don’t like thinking about that kind of stuff, but guess what? You’re going to die!

The only thing about that is that hopefully, you don’t die before reaching old age. Having life insurance will prevent your loved ones from gathering pennies to bury you, pay your family’s outstanding debts, getting your kids through college, or even as simple as buying groceries.

Another great thing about being an insured millennial is that this type of insurance costs between $20-$40 a month for an insurable amount of up to $500,000. Much like health insurance, your prices are going to vary depending on health condition and habits.

You are ready to take this step when you realize someone depends on your income to survive. Therefore the only type of insurance I use and recommend is term life insurance! The guys over at Haven Life specialize in this kind of insurance. 

Do not buy a crappy product like whole life insurance. Now that you are a Dinero Pro, you know that you can make better use of your money by investing it separately, instead of bundling retirement investments and insurance with an insurance company. 

Check out the guys at Haven Life. They make this process easy and can have a quote right out for you in minutes!

3. Disability Insurance (long and short term)

You might think, well I have health insurance. That’s awesome, but after a serious accident, you are going to need to recuperate. So in the meantime, how are your bills going to get paid? Your employer might pay some money meanwhile, but this is only short term. If your accident was a minor one, then you will be able to go back to work, and everything will be back to normal.

Most employers provide this short term disability insurance at zero to low cost. The stipulations, however, might only cover you for a couple days or weeks.

What if your accident causes some long term damages? Well, this is where long term disability insurance comes in handy. If that accident causes some injuries that prevent you from doing your job or finding another one, then long-term disability insurance will help you with your day to day finances.

Your health or life insurance provider carries this type of insurance. However, it might be a bit cheaper to purchase it through your employer since they get some deal with the insurance company.

4. Renters/Home Insurance

There is nothing more sad and annoying than losing your valuables in a fire, flood, or theft. Living in Austin, Texas the flood danger is constant. And ever since I have been renting, which is my whole adult life, I have always purchased renter’s insurance.

Aside from being super cheap ($10-$20 a month), it will also prevent you from further headaches. Also, if you end up with a crazy roommate or in a dangerous neighborhood (I get it, gotta save that moola), this type of insurance protects your valuables.

Other times, things out of your control happen, like maybe a pipe in your apartment busted (happened to the guy living below our apartment) now you might not have to wait for your complex to cough up the bill.

5. Liability Insurance

Here’s another one that’s so easy and cheap to purchase. Many times, the same insurance which provides your renters or auto insurance also has a standard policy along with it. Ours costs about $20 for protection up to $300,000. Our policy covers this amount if someone wants to sue us and they win the lawsuit. Or, if God forbid we cause $300,000 in damages, this also covers us. 

Having a pet, a wild one might I mention, really made us think about upping our liability insurance.

Bonus: Identity Theft Protection (Kinda like insurance)

ID theft insurance is another type of insurance that will save you many headaches. If someone steals your identity and gets access to your bank account and money, a good bank will take care of it. Many banks make you feel like crap for their mess up. Others even make you think that somehow it was your fault that some loser managed to trick them into your money.

Although many banks do the right thing and put your money back into your account, it can take a long time, even weeks for you to convince them about their incompetence.

With identity theft protection, you can avoid those headaches. The company we use assigns a personal advocate to do all the talking to the banks for you. Almost like your henchman to knock some sense into your bank! Besides, they run regular checks to see if anyone has used your information to do anything sketchy or somehow access your credit score. 

I hope some of this info helped. If you need any help or suggestions into what other companies I use, I would be happy to assist!

Are there other types of insurance I forgot to mention? What kind of insurance do you need to purchase?

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