Property and liability insurance for current lifestyle
Healthcare and disability insurance
Life insurance and estate planning for dependents
I assume the strategy in answering this question is to determine how to draw a line between spending lots of money on insurance versus 'going bare', as they say.
For property and liability, state law will usually define the minimum required amount for car insurance, and mortgage lenders will define the limits for house insurance. The personal decision process involves whether to purchase more than the minimum and how to decide on the deductible amounts for both. That decision should depend on the available resources of the owners of the property. If an owner has never been in an accident and has enough funds to comfortably cover car damage, then the deductible could be higher. In this scenario, the owner is ...
The 476 word solution is a careful discussion about three major areas of insurance and how they impact a life of planning for a funded retirement. A personal strategy should be customized to the individual based on several factors discussed in the solution.