“We devote much of our lives to making and living out our long-range plans.  We go to school, have children, plant gardens, and save for the future with the expectation that we’ll see the fruits of our efforts.  Probably for our benefit, the working out of these plans is full of surprises, often pleasant ones.  It’s part of what makes life interesting and worthwhile.  Some of the surprises, though, bring bad news, even tragedy.”

Richard E. Vodra, CFP®
Enough Money!: How to Create and
Manage Financial Success in Your Life

In his book Enough Money!, author Richard Vodra defines insurance simply as “an agreement in which we pay money to a company in exchange for their promise that if some event occurs (like an accident, sickness, or death), they will write a check or pay a bill to cover the loss that results.”  He strongly advises everyone to take care of the risks they face by owning good insurance on their lives, income, property, and medical care.

Life Insurance—Vodra states that life insurance addresses one of our biggest fears: “When we leave this world, will we be abandoning our families without having taken care of them?”

Disability Insurance—This type of policy is designed to replace part of your income if you lose the ability to work due to illness or an accident.  Vodra recommends that while some people may not need life insurance, nearly everyone should have disability insurance.

Auto and Homeowners Insurance—Often called “property and casualty” insurance, these policies protect your property from certain losses, and also protects you from the financial impact of a lawsuit due to injuries or damages for which you are liable.

Health Insurance—The costs to treat Illnesses and accident injuries are astronomical and increasing every year at a very high inflation rate.  Be proactive in exploring your options and never allow yourself or your family members to be without coverage if at all possible.

Long-Term Care—This insurance helps to pay the costs of long-term care whether at home or in a nursing home.  Medicare and conventional health insurance almost never pay these costs, and Medicaid only pays if there are no other financial resources.

To learn how to select good insurance policies, pick up a copy of Vodra’s book, check the Insurance Information Institute web site: www.iii.org, and talk with a trusted financial advisor.

Reprinted by permission of Money Quotient, NP

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