I write a lot about insurance, about all of those types of insurance that can be purchased, etc. The reality however is that for many of us, buying insurance is something we can barely afford to do. When you have a family living off of one income, are unemployed or are in a number of other situations, buying insurance can seem like excessive luxury.
At Which Point Should You Look Into Buying Insurance?
Ideally, you should try to do a budget, figure out how much you are able to afford every month in insurance payments. I personally think that the bare minimum when possible is to set a floor for yourself.
What Kind Of Floor?
You’ve all heard about having an emergency fund. Those funds not only will help if something ends up happening but it also brings a peace of mind, diminishes stress, etc. I see having basic insurance coverage as critical in a similar way. What insurance would I have?
If you can afford it, I’d also try to have some protection in terms of:
Those are the basics and over time you would hopefully be able to increase coverage and also get other types of insurance such as disability, critical illness or even life insurance.It’s easy to think that you can’t afford health insurance for example but you might be able to get basic coverage and hopefully increase it over the years.
Don’t Wait Till You Can Get The Bulletproof Vest
It’s tempting to postpone getting insurance until you have a decent amount of money waiting for you to spend. Believe me, it’s not going to happen. As your income increases, so will expenses and you’ll end up postponing until it’s too late. Don’t do it. Just determine how much you can afford and start from there. Insurance is NOT a luxury…
What are your thoughts? Have you or has anyone around you been forced to cut back on insurance for financial reasons?