How to Handle Your Insurances, Part 2

Give careful thought to how much life insurance you need. Don't expect the rules of thumb, such as a multiple of your income, to tell you how much life insurance to buy. If this formula works, it's a lucky coincidence. Instead, use real life insurance calculators like those found on the "Choose to Save" website at www.ChooseToSave.org. Consider buying long-term care insurance while you are still young. If you buy long-term care insurance when you're in your forties instead of your sixties, you will not only pay a lower annual premium based on your age, but you'll eliminate twenty years of possible illness or injury that might make you uninsurable. You may also qualify for an entire classification of lower rates because your health is probably better now than it will be when you're older. Try to get adequate uninsured and underinsured motorist coverage. This kind of insurance covers pain and suffering, lost wages, medical bills, and other expenses that should be the responsibility of an uninsured, at-fault driver who rarely has money to cover legal liabilities in case of an accident. Coverage of this kind isn't available everywhereshop around if you're having trouble finding uninsured and underinsured motorist coverage. Buy an umbrella liability policy to raise your coverage limits. An umbrella policy raises your liability coverage from, for example, $300,000 to $1,000,000 on both your homeowners and automobile insurance policies, in case you are sued by someone harmed in an accident. The cost is often less than $250 a year.

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