Insurance 101: Protecting What Matters
Insurance is the least glamorous part of personal finance and the most important. Health, life, disability, auto, home, and umbrella policies decoded.
“Nobody wakes up excited to buy insurance. But everybody sleeps better knowing catastrophic financial loss isn't one accident away.”
What you'll learn
Health insurance is non-negotiable. Employer plans: compare premium, deductible, co-pay, out-of-pocket max, and network. Marketplace plans: subsidies available if your income is 100-400% of FPL. HDHP + HSA combo is the most tax-efficient option for healthy people.
Life insurance: term life is all most people need. 10-30 year term, 10-12x your annual income in coverage. Skip whole life, universal life, and 'cash value' products — they're expensive investments disguised as insurance.
Disability insurance is more likely to pay out than life insurance. One in four workers will become disabled before retirement. Employer coverage may not be enough. Own-occupation policies (covers you if you can't do YOUR job) are the gold standard.
Auto and home/renters insurance: bundle for discounts. Review coverage limits annually — especially liability (at least $300k auto, $500k home). Umbrella policy ($1-2M) adds extra liability coverage for ~$200-400/year. Worth it if you have assets to protect.