The Rachel Cruze Show - 9 Reasons Your Insurance Coverage Might Not Be Enough

Starting point is 00:00:05 So to an extent, insurance is something that can almost just run on autopilot after you opt in, but there are a few important reasons why you need to reassess your coverage along the way during your life. And today, I'm going to share those with you. Now, before we begin, make sure to like this video, subscribe to the channel, and share it with a friend. All right, let's go over the four main types of insurance and when you might need to reevaluate them. And I'm going to leave a link to Ramsey's coverage checkup so you can actually do your own coverage checkup and realize, okay, here's the status that I am to make sure that you are prepared. So I'll leave that link down below. Make sure to check that out. All right, number one is life insurance.

Starting point is 00:00:45 So life insurance is insurance that if something happens to you, aka you're done, you know, you die. There is money left over for people. Now, there is life insurance, like whole life insurance, which I don't like because it's like an investment and life insurance for your whole life and all of this. or there's term life insurance, which is much cheaper. You have it for a term, so for 30 years or whatever it may be. Again, that's the life insurance I like. It's inexpensive. It's just what you need. But that is what it is, regardless of what you get, if you kick the can, whatever that's saying is and you're out of here, money goes to people that you love in your life that you leave this insurance money to. So this coverage will change if, number one, you get married. Okay, so this is probably really the first big step in. the order of life that you really need life insurance because you really only need life insurance of someone that's dependent upon your income. So if you and your spouse together are creating a lifestyle that both incomes are needed and one of you passes away, the other one is going to need that type of income to maintain the lifestyle that they are living. So if you get married, I think life insurance

Starting point is 00:01:56 is a great thing to look into and to get. Number two, more importantly, when you have a baby, So if you have dependents, people under you, aka your children, then you definitely need life insurance. Also, if you are getting divorced, this is a reason to reassess your life insurance because regardless of how the divorce goes, you're going to look at the settlement and realize, okay, here's the money going in, going out, here's what I'm going to have. If you get alimony, if you get child support, right? So your life may look different financially and probably will look different financially. So in that case, I would reassess your life insurance. Also, if you're in income or your net worth gets a significant boost. So the idea with life insurance is that you want 10 to 12 times your annual income. Now, if you set your life insurance, let's say at 25, and then you don't reassess it until you're 35, well, that's a decade long of you being in the workforce. And over time, your income will be going up significantly over a decade. And so that means you're going to need a different coverage, more coverage as your life goes on. So, again, if your income goes up, net worth goes up. And again, significant.

Starting point is 00:03:02 then you're going to want to reassess your life insurance and probably get more. The second type of insurance that everyone needs is home insurance. If you own a home, you need home insurance. This is if something happens to your home. And this can be everything from your roof leaking to your home being destroyed by a tornado or something, right? So having insurance is really, really important when it comes to your home. Now, your coverage will change if you go from renting to owning a home. So if you're renting, renters insurance, I would say, is a must. But when you go from renting to owning, you will be now getting home insurance. Also, if you go from owning to renting a home, if that changes, you're going to shift, right? So if you don't

Starting point is 00:03:43 own a home anymore because you sell it, maybe you're renting in a new city, then again, you're going to shift to renter's insurance. If you buy a home with less than 20% down, you're going to have PMI insurance. And this is basically insurance for the bank to make sure that you pay your loan, and that's basically what that is. But once you pay 20% of your mortgage, of the principle of your mortgage, then you don't have to pay PMI anymore, which is fantastic. That will cause you to save some money. All right, before I share the rest of these milestones, I want to talk about something that you need all the time, no matter what life stage you're currently in, and that is delete me. Did you know that one third, aka 115 million, of the U.S.

Starting point is 00:04:25 population's background, is now public on the Internet? So our info is out there for anyone to find. This is like our names and addresses and phone numbers and so much more. If that feels a little unsettling to you, you are not alone. This is why I love and use Delete Me, because they find and remove your information from hundreds of data broker websites that buy, sell, and trade your personal data. So take control of your online privacy with Delete Me.

Starting point is 00:04:54 Individual Delete Me plans start as low as $9 a month. So sign up today at Join DeleteMe. or click the link in the description. All right, the next type of insurance that everyone needs is car insurance. If you own a car, you will need car insurance. So your coverage on your car will change if you upgrade to a new car, meaning you're going to need more insurance. If you downgrade to a used car, you probably won't pay as much in car insurance.

Starting point is 00:05:25 And obviously at Ramsey, we have a unique car buying philosophy, which, is paying for your cars in cash. So you may be driving a beater while you're getting out of debt and all of that, but the idea is that you have a car that you can afford. But even if you are driving a beater that is not worth enough to be insured, you still want to look into insurance. Because let's be honest, most states, I think all states actually require you to have liability insurance. So this is something that you have to have, especially, you know, in Tennessee, the state that I'm in, you legally have to have liability insurance. So there will be some level of insurance on your car and make sure that you check with your local laws on the minimum required

Starting point is 00:06:09 coverage for your car in your area. So make sure to check that out. All right, number four is identity theft insurance. So this is a really important insurance to have. It's very inexpensive, but regardless of where you are in life, in our digital world, this is something that you need. And so having this insurance is incredible because if or when your identity is stolen, because let's be honest, our information is everywhere amongst the internet these days. And if someone does steal your identity and goes deep into it, like your social security number, passport number, some people get really deep into it, you need a company to help you untangle all of that. And it takes a lot of time, it takes a lot of money, a lot of frustration, a lot of emotion.

Starting point is 00:06:51 But if you have a company that helps you with it, it makes it so much. smoother. So I recommend Xander identity theft protection and I will leave a link below. But this is something that everyone needs in our world today because everything is so digital. And again, protecting yourself, they will help you. They will come in and help versus you doing all of it on your own. Okay, so this is kind of a high level overview, but our Ramsey coverage checkup is the next step to actually make sure you have enough insurance in your life. So number one, that coverage checkup really does help you realize if you're paying enough to be fully covered in all these areas. And number two, that you're not paying too much because insurance is actually a place where you can save a lot of money.

Starting point is 00:07:30 Sometimes we pay too much in insurance and you actually go and look and say, oh, I didn't need that much coverage and it can actually save you a ton of money. So make sure to click that link below and do that coverage checkup because I want you to kind of be at that place where you have enough for your life, but you're not paying too much. All right, you guys, good luck on this insurance journey. And remember to take control of your money and create a life you love.

The Rachel Cruze Show - 9 Reasons Your Insurance Coverage Might Not Be Enough

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