How much insurance do I need?

Health Insurance – Make sure your family is ensured. Buy as much insurance as you can possible afford. This is the most important form of insurance.

Life Insurance – If you have a family that is dependent on you, or anyone that will be financially strained from your death, it is a good idea to purchase life insurance. Again, purchase as much as you can afford, as the premiums on life insurance are relatively low.

Homeowner’s/Property Insurance – Make sure your house is insured. Renter’s or Homeowner’s insurance is a good idea of you have many valuable possessions. If you don’t, then perhaps it is not worth it.

Auto Insurance – Liability is required, but that doesn’t mean you should just get the bare minimum. Some people think, hey it’s not my car, and get the cheapest coverage, but remember what happened to Luis. An accident can cause great debt quickly. It is also a very good idea to get comprehensive, covering your own vehicle and self.

The general rule on insurance now is – purchase as much as you can possibly afford. Remember that this is a way to avoid financial hardship from unforeseen circumstances. If your number does come up and you win that insurance lottery (which of course you don’t want to), at least you will be able to get back to the place where you used to be. This is the whole goal of insurance.