055: Money Moves in your 20s

055: Money Moves in your 20s

Tip 08: Get insurance you need

Tip #8 Get insurance you need

When you are 20 something, you don’t have much assets to protect, you just starting out. But certain type of insurance is designed to provide protection against catastrophic events, such as sickness which might prevent you from earning money and accumulating your future wealth.

Here are 3 must have types of insurance:

  1. Health Insurance– this is a no brainer coverage and luckily or not, but because of the Obama health care act passed in 2010 means you a have to have to have minimum essential coverage. If you are under 26, you can still be covered under your parent’s plan.
  2. Disability Insurance– When you start out working your biggest asset is your ability to work and earn income. Imagine what will happen if you got injured, or sick and couldn’t work. How long will your savings last? Long term disability insurance provides income replacement in case where you can’t work. It’s one of the frequently overlooked insurances in the workplace.
  3. Renter’s insurance– this coverage provides Liability protection, when you rent an apartment or home if someone got hurt on your premise. The last thing you need is lawsuit against you. Also, this type of insurance will provide coverage for your personal possessions, such as electronics, furniture) in case there is a break-in, fire or natural disaster.
 
Anna Sergunina
anna@adviceonly.net

I passionately believe that in order to live a life of fulfillment and joy, we must genuinely serve each other in any way possible. I found my mission in life to serve others via financial planning. Anna regularly writes about personal finance. Her work appears on Business Insider, Nasdaq, Nerdwallet, among others. Anna is the creator of Money Flow system.

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