Friday, June 3, 2011

Budget Tip for the Week: Four Must-Have Insurance Policies, $10 Dave Ramsey Sale, and Rainy Day Cash Giveaway

You all know I love Dave Ramsey's book "Total Money Makeover". I think it is so important to be prepared and be able to whether the storms that are sure to come. His book has taught me so much. It's the only book I read in 2 days and that I actually liked reading(some of you may be thinking I'm really boring right now, lol) because I actually learned a lot that applied to my families needs and it isn't impracticle advice. I consider it to be very sound advice and even though no one says it is easy, they all say it is worth it! I'm still working through the steps as we just got finished up with school which left a trail of student loans.

Right now you can get his book for only $10... and any other products for only $10!!! When I bought it, it was $15 and then shipping too so it's a great time to buy. I love them for wedding gifts too. All couples really should start out on the same page financially. You'll have much less struggle later on the issue.

Dave Ramsey is also doing a RAINY DAY CASH GIVEAWAY
This is the perfect chance to get your emergency fund boosted and start knocking out debt.

This article is taken from Dave Ramsey's site. I think it is so important to have yourself covered in case of an emergency, by doing so you save yourself the stress and the financial pain that could have followed if you were unprepared.

Dave says it best:  

"Just because some aspect of money isn’t talked about much, doesn’t mean it’s not important.

It’s obvious that a budget or a debt snowball need to be checked frequently to make sure that you’re sticking to them. If stuff like that gets away from you, it can turn bad quickly. Make sure to refresh yourself on these four insurances:

Life Insurance
If you die with no life insurance, your family will most likely be stuck in a dire situation and have to make drastic changes, all the while grieving you. You should have eight to 10 times your yearly income set aside in a term life policy. That way, if you pass on, your family can invest the money and, at a 10% return, replace your income.

This is something that shifts more often than you think. Every time you get a raise, have a child, buy a house or have some other significant life event happen, you need to make sure that you have enough insurance to cover it. Don’t take this lightly; one-third of adults in the United States carry no life insurance, and more than half a million in the prime of their lives die prematurely each year.

68 million Americans have no life insurance at all. That's the equivalent of every man, woman, and child in the green-colored states.

Long-Term Disability Insurance

If you die, your life insurance will take care of your family. But if you are permanently disabled, you will be unable to produce an income and yet still need to be cared for. In that case, you need long-term disability insurance that will provide about 70% of your income for an extended time period, usually until death or age 65.
You can usually get it the cheapest through your workplace. And you need to. About 49 Americans become disabled every minute and three in 10 in the workforce today will become disabled before they retire. With the average monthly benefit from Social Security disability being $1,004 a month, you can’t afford to not have this type of insurance.

In the past hour, almost 3,000 Americans became disabled. That's 49 every 60 seconds.

Long-Term Care Insurance
This isn’t necessary until you hit age 60. After that it becomes vital. A nursing home can cost about $50,000 a year per person. If you and your spouse go into an assisted living facility with $300,000 in life savings, you’ll have it used up so fast you won’t believe it.

If you are approaching 60, start looking at long-term care insurance. Don’t buy it before then (it’s not necessary enough at that point) or after (it can get too expensive).

Find a long term care insurance agent in your area who Dave recommends.

Homeowner’s/Renter’s Insurance

You should never own or rent property without having yourself covered in the case of a fire, flood, burglary or some other disaster. Renter’s insurance is relatively cheap to get, so make sure to have some.

When buying homeowner’s insurance, get one that has guaranteed replacement costs. If something happens to your home and you have a policy without guaranteed replacement costs, you will only be covered for the value of your home at the time you took out the policy. That’s bad news if your house has increased in value. Make sure to have your full emergency fund in place so you can take the lower premium and higher deductible on it.

Another important aspect of a sound financial plan is to keep your Legacy Drawer up to date. Learn what needs to be included in your Legacy Drawer, in addition to the insurance infomation above."


*all links that were originally in his text are removed, if you would like access those links... go here

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