Face it: if you buy every kind of insurance out there, you will have nothing left to put into your retirement investment There are many policies for events that you would be better off setting aside extra money fork instead of paying a monthly insurance premium: pet insurance, boiler insurance, and vision insurance are just a few such policies.
On the other hand, purchasing some kinds of insurance turns out to be a good financial decision. Five that you may want to consider are:
- Medigap and/or long-term care insurance for senior citizens. Medigap covers some expenses that Medicare does not, and long-term care insurance ensures that in the event and elderly person has to , for example, be put into a nursing home, neither he nor his grown children will suffer financially because of it.
- Term life insurance. In the event of the death of the breadwinner of the family, this kind of policy will provide a financial cushion for several years.
- Earthquake or flood insurance, if either is a problem where you live.
- Short-term health insurance. If you don’t want to carry a regular long-term health insurance policy, but want coverage in certain circumstances for a short period of time, this may be an alternative worth looking into. More information can be found at Short Term Health Insurance.net.
- Disability insurance. This helps with household expenses should you become unable to work due to an accident.
Of course, you must have auto insurance, and homeowner’s insurance is always a good idea, even if you have already paid off your home. Whatever you decide in the area of insurance purchases, make sure the decision fits within your budget.