The True Cost of Happiness: The Real Story Behind Managing Your Money

Chapter 14. Covering Your Assets:HOW TO CHOOSE THE RIGHT INSURANCE

You've worked hard to channel your resources toward your most important goals. Life is rolling along happily, and you're spending your time and money on the things that matter most to you. Then the unexpected happens. Aunt Betty comes over for dinner and slips and falls on your stairs. Uncle Chuck sees this as the big payday he's been waiting for, and you don't have a lot of liability insurance. Next thing you know, your time, and some of the money you have earmarked for your goals, is going toward your aunt's medical bills and lawyer fees.

On the flip side, I've come across many people who are so concerned about having insurance for a rainy day that they pay for policies they simply don't need. I know a couple in their 50s, for example, who did not have children or grandchildren, but were spending a lot on life insurance. (There are a lot of scripts out there that tell us that life insurance is a must.) After reevaluating how this scripting was playing out in their financial choices, they took the money they were spending on insurance and used it to supplement their investments for retirement.

Having the right insurance will protect from the financial devastation that can come with the unexpected. You want to make sure you are protecting the things that are most important to you, but in an efficient manner. We will walk you through the essentials so that you have the information you need to make the right choices. ...