Personal Finance For Dummies®, 6th Edition

Chapter 16. Insurance on You: Life, Disability, and Health

In This Chapter

• Looking into life insurance

• Debating disability insurance

• Selecting the best health insurance

• Considering overlooked insurance

During your working years, multiplying your typical annual income by the number of years you plan to continue working produces a pretty big number. That dollar amount equals what is probably your most valuable asset — your ability to earn an income. You need to protect this asset by purchasing some insurance on you.

This chapter explains the ins and outs of buying insurance to protect your income: life insurance in case of death and disability insurance in case of an accident or severe medical condition that prevents you from working. I tell you what coverage you should have, where to look for it, and what to avoid.

In addition to protecting your income, you also need to insure against financially catastrophic expenses. I'm not talking about December's credit card bill — you're on your own with that one. I'm talking about the type of bills that are racked up from a major surgery and a multi-week stay in the hospital. Medical expenses today can make even the most indulgent shopping sprees look dirt-cheap. To protect yourself from potentially astronomical medical bills, you also need to have comprehensive health insurance.

Providing for Your Loved Ones: Life Insurance

You generally need life insurance only when other people depend on your income. The following folks don't need life insurance ...