If you don’t insure against loss, there go your savings. Health insurance, life insurance, business insurance, home owner’s insurance, renter’s insurance… Decide what you need and get insured.
Let’s say that, unfortunately, your spouse becomes ill and has to be out of work for 90 days or, worse yet, passes away. Your money becomes your sole source of income. And if your spouse has no life insurance, you will also have to bear the costs of the funeral.
I say this to my clients: I may not be sure the sky is actually blue; it may be an interesting shade of pink. But I am sure of two things in life. The first certainty is that I will die and close my eyes for the last time. That’s a road we all have to travel; we can’t run away from it. The second certainty is that something will happen during my lifetime to make my money get funny. I will get sick because I’m human, I may have an accident, I may become unemployed for a short or long period of time; all of this is likely to happen sometime in my life.
And something like this will happen to you, too, because you’re human. You know it will happen—it’s not a matter of if it will. So my question is, are you prepared for it? I’d like you to wrap your head around the fact that your life is a business, and when you run a business, you have to put safety nets and stopgaps into place. In the operation of a business, you use insurance for the safety nets and stopgaps, and you do the same thing for your personal life.
If you find yourself with an enormous medical bill and you’re uninsured, all of your savings, all of your retirement accounts, everything can be wiped out. So make sure you have health insurance. Whether you’re single or married, if you get sick or something happens to your spouse and a paycheck doesn’t come, payment of your day-to-day bills may be thrown off completely. Therefore, make sure you have short-term or long-term disability insurance. If your employer doesn’t offer these insurances, you can buy some on your own, sometimes rather inexpensively. If you join a professional association, you may be able to get it even cheaper.