Where We’ve Been So Far in 2025:
- January: We started strong with SMART financial goal setting.
- ∙February: We created and maintained budgets.
- ∙March: We built emergency funds to protect against the unexpected.
- ∙April: We tackled credit and debt management.
- ∙May: We explored smart saving and investing strategies.
- ∙June: We learned how to invest as beginners.
Now in July, it’s time to talk about something many people overlook until it’s too late: insurance.
What Is Insurance, and Why Do You Need It?
Insurance is a financial safety net that protects you, your loved ones, and your assets from unexpected events. Whether it’s a car accident, house fire, medical emergency, or loss of income, insurance helps you recover without going into debt.
Think of insurance as an emergency fund for big disasters.
Types of Insurance You Should Know
1. Health Insurance
- ∙Covers doctor visits, hospital stays, prescriptions, and emergencies.
- ∙Even with an emergency fund, a serious illness could wipe out your savings without health coverage.
- ∙Check if you qualify for subsidized plans via Healthcare.gov
2. Auto Insurance
- ∙Required in most states.
- ∙Covers liability (damage to others), collision (damage to your car), and comprehensive (theft, weather, etc.).
- ∙Compare plans on sites like The Zebra or NerdWallet.
3. Homeowners or Renters Insurance
- Homeowners: Protects your home and belongings from fire, theft, or natural disasters.
- Renters: Covers your belongings in a rented apartment or house.
- It’s more affordable than most think—often under $20/month for renters.
4. Life Insurance
Life insurance ensures that your loved ones are financially protected in the event of your death. It’s especially important if you have dependents, debts, or want to leave a legacy.
Types of Life Insurance:
- Term Life Insurance:
- Provides coverage for a specific period (e.g., 10, 20, or 30 years).
- Most affordable option.
- Ideal for young families and those who want to cover large obligations (like a mortgage or children’s education).
- Example: A 35-year-old can get a 20-year, $250,000 policy for around $20–$30/month.
- Whole Life Insurance:
- Offers lifetime coverage and includes a savings/investment component known as “cash value.”
- Higher premiums than term policies.
- Best for those wanting guaranteed lifelong coverage and estate planning.
- Universal Life Insurance:
- A flexible policy combining permanent coverage with an investment/savings feature.
- You can adjust premiums and death benefits.
- Useful for higher-income earners looking for tax-advantaged growth.
- Final Expense Insurance:
- Covers end-of-life costs like funeral and burial expenses.
- Ideal for seniors or those with limited coverage needs.
- Example: A $10,000 final expense policy may cost around $25–$50/month depending on age.
Who Should Consider Life Insurance?
- Parents or guardians of minor children
- Spouses who rely on each other’s income
- Homeowners with a mortgage
- Small business owners with financial obligations
- Individuals who want to cover funeral costs
How to Apply for Life Insurance (Step-by-Step):
- Decide how much coverage you need:
- Choose your policy type:
- Term for affordability, Whole for lifelong coverage, etc.
- Get quotes from multiple insurers:
- Use Policygenius, NerdWallet, or consult a licensed broker.
- Complete an application:
- Includes questions about health, lifestyle, and financial history.
- Take a medical exam (if required):
- Some policies offer “no medical exam” options at higher premiums.
- Review and sign your policy:
- Double-check beneficiaries and terms.
- Make premium payments:
- Set up autopay to avoid lapses.
- Store the policy in a safe place:
- Make sure your loved ones know where to find it.
5. Disability Insurance
- Replaces income if you can’t work due to illness or injury.
- Often overlooked but incredibly important—especially for single-income households.
How to Choose the Right Insurance
- Assess your risks: Do you drive? Rent or own? Have dependents?
- Know what’s required: Auto insurance is usually mandated. Landlords often require renters insurance.
- Compare quotes and plans online.
- Look for bundled savings (auto + renters/home, for example).
- Don’t buy more than you need—start simple and add on as life changes.
Free Resources to Help You Shop Smart
- Healthcare.gov: Health plans and subsidies
- NerdWallet Insurance Guide
- PolicyGenius: Life, renters, homeowners
- The Zebra: Auto comparisons
- Printable Insurance Worksheet: Use this worksheet to compare rates.
How PVS Financial Coaching & Services Can Help
Insurance can feel confusing—but at PVS, we break it down in a way that’s easy to understand. We offer:
- Insurance education sessions for families
- Free worksheets to assess coverage needs
- Budget coaching to help make room for insurance premiums
- One-on-one support to evaluate current policies and avoid overpaying
Conclusion
You work hard to build your life—don’t leave it unprotected. Insurance is an essential part of any financial strategy. With the right coverage, you can rest easier knowing you’re ready for whatever life throws your way.
Let’s make protection a priority this month.
