Step 18: Carry adequate insurance

Building wealth is a lifetime process. Use Insurance to protect your hard work from danger. Building your fortune is like a game. Play good offense (make a lot of money) and good defense (spend little and protect what you have). 

• Protect your largest assets
  • home (house insurance)
  • car (auto insurance)
  • income (disability, medical, and life insurance)
• Managing risk is essential to your long-term financial security. The point of having insurance is to protect from financial catastrophe. Buy only enough insurance to cover expenses you couldn’t make out of your own pocket.
• It’s imperative to buy insurance when you don’t need it, because when you do need it, you can’t get it.
• “You want to do business with a company that will be around for years to come – one that will be there if you ever need it.” 
• car & homeowner’s
  • Select the highest possible deductible on your auto and homeowner policies and do not submit small-dollar claims.
  • Choose replacement-cost homeowner coverage and keep a current inventory of your personal property in a safe-deposit box.
  • Maintain your auto and homeowner policies with the same carrier and buy an umbrella policy from that carrier.
• Medical insurance is the most critical insurance to have in some peoples estimation.  That is because the primary cause of bankruptcy in America today is because of medical catastrophe. 
• disability
  • During your working years, carry long-term disability insurance equal to at least 60% of your gross income.
  • Pay the LTD premiums with after-tax dollars so that you receive any benefits tax-free.
  • At least 10 years before retiring, buy a long-term care policy with inflation protection. Pay the LTC premiums from your health savings account.
• life insurance is particularly important if you have individuals that are dependent on you for survival.  If not, it may be unnecessary.
• Insurance is complicated.  Consult with a trusted professional to secure the right coverage.  (Ask your parents, friends, or co-workers for recommendations on insurance agents.) Reduce insurance expenses. 
• Shop around.  Review coverage annually to check rates, applicable discounts, adequate coverage and adjust for lifestyle changes.  

---

?