The Financial Checklist Plan
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  • Today's Average Financial Picture
  • Why Learn the Financial Checklist Plan?
  • 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
  • Financial Checklist Blog

Financial Checklist Plan Part 3:
Insuring We're Properly Insured

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


Homeowner's Insurance:

It is recommended that homeowners get Guaranteed Replacement Cost homeowner's insurance.  This type of homeowners insurance can be harder to find, but not impossible.  This will cover the cost to replace your home (regardless of increased value) in the event of a loss.  Most newer Homeowner's Insurance policies offer what is called "Extended Replacement Coverage."  This coverage will cover a loss up to a pre-determined amount, but may not in time be enough to completely replace your home as its value increases.  Guaranteed Replacement Cost homeowner's is a rare find, but if the day comes you find you need your homeowner's insurance, you'll be glad you opted for GRC.

Once again, deductibles for this coverage can be evaluated based on your financial situation, and if in a proper financial place to do so, raising deductibles may be a wise move to save on upfront cost for the insurance.  

Renter's Insurance:
If you pay rent where you live (are not a homeowner), it is recommended that you purchase renter's insurance in a sufficient amount to cover your personal property (which is likely worth more than you might think).  This coverage will replace your personal property if a loss is incurred. 

Renter's insurance is generally very inexpensive and a wise purchase for renters. 

Next, consider Umbrella Policies.

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