Free From Broke

A Personal Finance Blog for Regular Folks

Insurance

My Employer Offers Life Insurance, Is That Enough For Me?

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Life insurance is one of the most critical pieces of financial insurance you can buy.

No amount of money will bring you back from an untimely death, but if your family is reliant on your income then going without it puts them at grave risk if you suddenly pass away.

The best option for most people is to buy a term life insurance policy for a minimum of 5 years worth of your annual income; 10 years or more is preferred.

But sometimes those polices can seem out of reach or simply inconvenient to get.

I’m not saying inconvenience is a legitimate excuse (you can buy a policy online and they will send a nurse to your home to the medical exam!), but it is one nonetheless.  Sometimes cost keeps us from buying the life insurance policy we really need, too.

Many people instead opt for their employer’s life insurance.

Using that life insurance is generally easier and more affordable because you are part of a group plan.  The cost can be taken straight out of your check so you never feel the impact of the insurance on your budget.  Your employer may even pay for your coverage, or at least part of it.

However, relying solely on your employer’s life insurance is fraught with danger.

Why Your Employer’s Life Insurance Isn’t Enough

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What is Renter’s Insurance and Why You Need It

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While most people know how important it is to have homeowner’s insurance, many never stop to consider whether renters also need to protect themselves.  (Quick hint: They do!)

Many tenants assume that they don’t need renter’s insurance because any hazards will be covered by their landlord’s insurance—after all, they’re the ones who own the property, right?

Nope.

The landlord’s insurance will cover only what the landlord owns, and that will be limited to the land and the physical structures on it.  Anything inside the building that you own will be excluded by the landlord’s insurance company.

Somewhere in the stack of papers that you signed along with your lease, you would probably find something that says that it’s your responsibility to insure your property, but you either didn’t know or didn’t want to spend the money.

But guess what, you need to have renter’s insurance.

What is Renter’s Insurance?

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Have You Thought about Renegotiating Your Life Insurance Premiums?

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With life insurance, many of us just accept the fact that the premiums are set at the outset, and that once they are locked in, you are stuck.

The good news is that this isn’t always the case.

It’s actually possible for you to contact your insurance company when your risk profile changes and negotiate a better monthly premium.  This applies to term life insurance and permanent life insurance.

If you have been making positive changes in your life, consider asking for a reassessment to see if you are eligible for lower premiums.

When to Renegotiate Your Life Insurance

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What is Long Term Care Insurance, and Should I Buy It?

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One of the biggest fears that many of us have is losing independence.

What happens when you can no longer keep up with your house?  Where will you go if you can’t stay in your home?  And how will you pay for it?

Long term care insurance (also known as LTC or LTCI) is supposed to answer some of these questions.

What is Long Term Care Insurance?

This type of insurance policy is supposed to help you pay for different types of long term care as you age.  Long term care insurance is designed to pay for services that might come in your own home, at an assisted living facility, at an adult daycare, or in a nursing home.

You are supposed to be able to buy a policy, make premium payments, and then, when you need help with care due to illness, old age, disability, or some other difficulty, the long term care insurance provides the means for you to pay for services that might include anything from helping you manage day-to-day to providing you with certain health care services.
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Walmart Life Insurance Policies – Should You Buy Yours There?

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Imagine the unimaginable–you’ve died. 

In the prime of your life, years before you thought you would, you’ve died.  You’ve likely left behind a spouse and children.  Of course, they will grieve your loss terribly, but soon after you pass on they’ll be confronted by a harsh reality of life without your financial contribution.

How will your spouse survive and meet the bills?  Will she have money to send the kids to college?

Unfortunately, financial considerations crop up soon after someone dies when the funeral needs to be planned.

Life goes on.

If you’re the primary breadwinner, life goes on for your family with much less money, unless you had life insurance in place.

Unfortunately, 30% of Americans have no life insurance.  “Of the 35 million American households without life insurance, 11 million include children under 18” (MSN).  While dying in your prime is unlikely, it happens every day.  My dad died when he was just 38, and my parents were woefully underinsured with life insurance.  My mom has struggled financially since he died over 25 years ago.

Why Don’t More Americans Get Life Insurance?

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