Suze Orman

Insurance


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Insurance Special

IS THERE A WAY TO INSURE LAND AND SEA WALL?
  • There is no insurance that will protect your sea wall and land if it disappears in a storm surge
  • If property does disappear in a natural disaster, hold onto the property and it should get its value back. Don’t be tempted to sell it.
COSTCO IS NOW OFFEREING HEALTH INSURANCE IN CALIFORNIA
  • Shortly it will be offered throughout entire country
  • Premiums are going to be quite low
DISABILITY INSURANCE
Example:
  • If you are self-employed and making 100K/year and your business expenses are 60K/year, disability insurance company subtracts cost of business to your income which leaves 40K and that is what you are insured for
  • If you are not self-employed you will be insured up to 66% of your income
  • If you have disability insurance, call insurance company and find out when will they cover you, what will they cover you for – will they cover you only if you can’t do your own occupation or will they cover if you can’t do any occupation
HOMEOWNER’S INSURANCE FOR SINGLE FAMILY RESIDENCE
  • HO3 Policy – covers everything – structure and contents
CONDO INSURANCE
  • HO6 Policy
    • Condo association fees cover the outside of the structure
    • Association policy covers the units in the building but not the interior of each unit
    • It does not include electrical /wiring, plumbing and heating/cooling system – just covered by HO6 policy
    • Inside of apartment is covered by HO6 policy – make sure your HO6 Policy covers to actually replace all of the contents within your condo
    • Each condo association differs – check your policy
YOU CAN NEVER HAVE TOO MUCH HEALTH INSURANCE, AS LONG AS YOU CAN AFFORD IT

SUZE SAYS
  • I HATE WHOLE LIFE INSURANCE
  • I HATE UNIVERSAL LIFE INSURANCE
  • I HATE VARIABLE LIFE INSURANCE
  • THE ONLY TYPE I LIKE – FOR THE PURPOSES FOR INSURING YOUR LIFE – IS TERM INSURANCE!
  • If you are smart with the money you have today and you get rid of your mortgages, car loans and credit card debt and put money into retirement plans you don’t need insurance 30 years from now to protect your family when you die.
IF YOUR HOME IS DESTROYED, MUST YOU REBUILD ON THE SAME PROPERTY OR CAN YO DO IT ELSEWHERE?
  • Many insurance companies only give full insurance value only if you rebuild in the same location – check your policy
  • If insurance company does not allow you to rebuild anywhere for full insurance value, change companies
  • Everything that you would get – contents, additional living expenses - is based on actual insurance amount for the structure
HOMEOWNER’S INSURANCE
  • Insures your residence
  • Automatically covers contents
  • You cannot buy a policy that doesn’t cover contents
FLOOD INSURANCE
  • Does not automatically cover contents
  • You can purchase extra coverage for contents
  • Up to $250K coverage
  • If you want more you can buy additional flood insurance but it will cost you a fortune
  • You can add on a contents coverage up to a maximum of $100K
VETERINARY INSURANCE
  • Not a great fan of pet insurance
  • Will usually cost you $2000-$6000 over the life of the pet
  • Pays off big if you take out a policy and animal gets sick the same year you take it out
  • If animal stays healthy for several years then it does not pay for itself
  • Log on to insuranceguide101.com – you will be able to research and decide if pet insurance is best for you
SHOULD EVERY PARENT HAVE LIFE INSURANCE?
  • You can’t afford ‘not’ to get it
  • Designate someone to invest proceeds wisely so your child is supported up to 25 years old
  • $500K Policy = $25/month for a 20-year level term policy
IF YOUR HOME IS DAMAGED IN A DISASTER
  • Your mortgage company/bank will defer your mortgage payment for 90 days
  • You will then have to pay your mortgage
  • Insurance company will issue a check to you and your mortgage company
  • You will take check to mortgage company
  • Mortgage company will set up escrow account
  • Money will be used to pay contractor
  • You still owe monthly mortgage while property is rebuilt
LONG-TERM CARE INSURANCE
  • Insurance that will pay for a stay in a nursing home or adult living community or someone to care for you in your home
  • The best time to buy long-term care insurance is around 59 years of age
  • Long-term care insurance is something every single one of you should have if you can afford it
  • Average stay in a nursing home is 2.5 years
  • Average cost of a nursing home stay is $55K/year
  • Average age of entry is 84

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