The Financial Checklist Plan
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  • Past, Present, Future
  • THE Financial Checklist Plan
  • 1. Personal Reserve Fund
  • 2. Eliminate Personal Debt
  • 3. Insuring We're Properly Insured
  • 4. Saving for Retirement and College
  • 5. Paying Off Cars and Homes
  • 6. Building Wealth and Giving and Living Graciously
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Financial Checklist Plan Part 3:
Insuring We're Properly Insured

Am I properly insured?  Insurance seems so vast and hard to understand. How can I know I am properly insured? 

To many people, Insurance is often thought of as a necessary evil.  It has its place, but the less we have to deal with it the better - or so the thinking goes.  But being properly insured is a CRITICAL part of your Financial Checklist Plan.  You may only come to know the incredible value of insurance if and when the day comes that you find out just how much you needed it - or wished you had it!

Here's a great review of the insurance you need and the insurance you can do without. 
The Financial Checklist Plan: Insurance Checklist

Insurance You Need

Health Insurance
Term Life Insurance
Auto Insurance
Homeowner's Insurance / Renter's Insurance

Umbrella Policies
Long Term Disability Insurance
Long Term Care Insurance (if over 59 years old)

Identity Theft Insurance

Insurance You Don't Need

Life Insurance that is not Term Insurance
Disease Care Insurance (Cancer, Heart Attack, etc)
Private Mortgage Insurance
Extended Warranties
Water Line Coverage
Credit Card Insurance
Mortgage Life Insurance
Accidental Death Insurance

Health Insurance:

First, make sure you have it and don't go a day without it.  The world is filled with far too many stories of those who thought they could go without health insurance, even for a short time and were zapped by a health problem that devastated them physically AND financially.   

Second, depending on how you have health insurance (through work or purchased on your own or medicare, etc.), learn exactly what your current plan covers and what your out of pocket expenses look like.  What is your deductible?  How much will your insurance pay after your deductible is met?  What is your maximum cost in a year's time (if say a major health issue occurred)?  Also consider what other health insurance options may be available to you.  Affordable Health Insurance can be purchased simply on the open market and with the new Affordable Health Care act, you may even qualify for a stipend to assist you in buying coverage. 

A conversation with your local or company health care contact person/representative might also be in order to reconsider your deductibles pending your financial situation.  Maybe you could now or later increase your deductibles and realize savings on your health care plans? 

Along with this analysis, consider beginning a HSA (Health Savings Account).  These accounts have many benefits and are not hard to set up and fund.  They are funded pre-tax, roll over every year (no money lost) and are a great pre-tax way to save on deductibles and fund medical expenses.  Talk to your local health care contact person to find out if this would benefit you to consider (and likely it would). 

Next, consider buying Term Life Insurance

A Little Background

Today's Average Financial Picture
Why Learn the Financial Checklist?
Learning from the Past
Remaking the Present
Owning the Future

The Financial Checklist

Creating a Personal Reserve Fund
Eliminating Personal Debt
Insuring We're Properly Insured
Saving for Retirement and College
Paying Off Cars and Homes
Building Wealth, Giving and Sharing

Checklist Execution

Visioning a Different Future
Committing to Change
Investing Wisely