Welcome to 2013, Zuskateers, and yes, I want you all to buy more insurance, pronto!
I'm not talking car insurance; if you have a car, you no doubt already have it insured. I'm just going to assume you have it insured properly. I'm not talking health insurance either because whatever your situation, there's probably not a whole lot you or I can do about it, even with that socialist Obamacare that's ruining America even as we speak.
And I'm not even talking about gun insurance, which is a dream that may yet some day come true.
Nay, the insurance I speak of is life and long-term care insurance.
If you are really young and healthy, you probably have neither, and this is not good. Every day that goes by increases the risk that you/your family members will need to use this type of insurance, and decreases the likelihood that you will qualify to purchase it, at least at anything like an affordable rate.
Let me give you an example. Some time in my late thirties, my employer offered employees the option to purchase long-term care insurance for themselves and/or for family members, including parents. The insurance was also portable, meaning I/family members could take it with us if/when I left that employer. I was concerned about planning for my mother's future and so we applied for the long-term care policy for her. Myself? I was hale and hearty, and saw no need to "waste" my salary on long-term care insurance premiums. Within two years I had a stroke and that, Zuskateers, was the end of my lifetime opportunity to buy long-term care insurance.
Mr. Z's company recently offered a policy to employees and spouses. Before filling out the application proper, I had to answer three questions, one of which was "have you ever been denied for long-term care insurance?" and another of which was "have you ever had [cancer, heart attack, stroke, etc.]?" A yes answer to any of the three questions leads to this instruction in large bold print: Do Not Fill Out This Application. That's because a yes leads to automatic denial. And you don't want to be denied for long-term care insurance if you hope to someday get long-term care insurance. Not that you will be able to get it, what with the cancer/heart attack/stroke stuff. This is known as irony. Of the two of us, I am more likely to need long-term care, and need it sooner, therefore of course the insurance companies will only sell it to Mr. Z. This is why you must buy the insurance when you still can't foresee any need for it.
So Zuskateers, if you are still pre-cancer/heart attack/stroke/other medical disasters, and you have a chance to get yourself some long-term care insurance, you buy it. You make room in your budget, and you buy it. (After you make sure that it is a good policy that actually provides useful benefits.) Do you have any idea how much assisted living costs? I'm not talking nursing home care, I'm talking assisted living. Or in home care? This stuff is pricey. I assure you, it is not too early to start learning about the various types of senior living options. If it's still awhile till you need this information for yourself, you may need it for a parent or other elderly relative sooner than you think.
Just don't kid yourself that you are going to stay your same hale and hearty present self for the rest of your life. This is known as magical thinking. Injuries, accidents, illnesses can happen in a flash and change your life forever. Yes, you can eat well and exercise and take care of yourself the best you possibly can, but Fate can have its way with you, and that you can not control. So: long-term care insurance.
The other piece of the insurance pie is life insurance. You're young, you can't imagine what's the need. What will you do with it? You'll be dead after all, won't you? Okay, first of all: life insurance pays out immediately after a death. Those folks are prompt. So if nothing else, your family members will have ready cash on hand to cover your burial expenses. Second: are you a two-income family? You are, right? I don't think there are many 1-percenters reading this blog. What will your family do if one of those incomes is suddenly lost through death? How will your surviving partner/kids cover the bills, the rent/mortgage, everything? Hint: life insurance will help. Are you a single parent? How do you expect your children to be cared for if something happens to you? I'm sure you have someone in mind to look out for them if the unthinkable happens, but wouldn't it be much better if these kind souls had an insurance benefit to help provide for them? Yes, it would.
Again I use myself as an example: I have a life insurance policy that is provided through my disability insurance (that itself came through my last employer). If something happened to me, this would help Mr. Z compensate for the loss of my disability income. This insurance policy, however, is only in effect until age 65. Ideally I would purchase something else to compensate for the fact that this policy will go away someday - except, of course, insurance companies aren't thrilled about insuring people who have had strokes. Safe to say it's best to buy your insurance before you've had any major health issues.
So my young and healthy Zuskateers, your New Year's resolution: get thee to an insurance agent. Get some quotes from several agents. Learn about long term care policies, learn about life insurance, learn about the level of coverage you need now to protect yourself and your loved ones. I mean it.
The gyms are all going to be way too crowded the first two weeks of January anyway. You might as well take this time to begin your insurance research.