| At the end of Part 1 I said I would discuss some good | | | | The next kind of policy I recommend to those who |
| deals you can get in insurance and this is what I intend | | | | don't have it through work is a short-term disability |
| to do in this section. No bargains can be found in the | | | | policy. This covers you if you are out of work for any |
| "must have" type policies, like auto and home | | | | length of time and can't make any money. Anyone |
| insurance. But there are some policies I highly | | | | looking to start a family should have this because while |
| recommend. | | | | the new mom is home with the baby she can get paid |
| The first type of policy I recommend is an umbrella | | | | while on maternity leave. This type of policy is |
| policy. This is a policy that covers you for personal | | | | becoming more and more popular as employers are |
| liability. Depending on your insurance company you can | | | | looking to cut costs by reducing benefits. |
| get a $1,000,000 umbrella policy for as little as | | | | My wife had a short-term disability policy because the |
| $200-$300 depending on what you are covering. This | | | | school system she works for does not offer STD |
| is usually for 2 cars and one home. Once you add | | | | benefits. We pay roughly $75 month for the policy that |
| more cars and additional houses the premium goes up. | | | | will pay her just under $3000 for a month out of work. |
| Hopefully you never need to use this type of policy but | | | | As long as you can get a doctor's note saying you |
| in this country, where people file law suits for spilling hot | | | | should miss work you can receive a predetermined |
| coffee on themselves, you need to protect your | | | | amount of money for up to six months. After six |
| assets. If you do get sued wouldn't it be nice to know | | | | months you will need a long-term disability policy. Let |
| you have a million or more in coverage for a couple | | | | me tell you, this money came in handy when our |
| hundred dollars a year? | | | | daughter was born. |
| In some cases an umbrella policy can save you some | | | | Most people will say they don't need this type of policy |
| money. How? Some people understand the | | | | but I think it is a bargain. We have actually made |
| importance of having the proper amount of coverage. | | | | money on this policy because we have had it 3 years |
| Instead of having an umbrella policy they add more | | | | and it has cost us $900 per year. We have made one |
| liability coverage on their auto policies and home | | | | claim, when my daughter was born, and we got |
| policies. For example, you can get an umbrella policy if | | | | $3000. Unless you commit fraud you cannot make |
| you have $100K in liability coverage on your auto and | | | | money on an auto or home policy. |
| home policies. Some people carry $250K in coverage | | | | I think I have shown you two bargains as far as |
| on their auto. The cost of increasing from $100K to | | | | insurance goes. Anyone with something worth taking |
| $250K is usually as much, if not more, than having the | | | | should have an umbrella policy. Anyone that is not |
| umbrella policy. So, these people carry only $250K in | | | | offered STD benefits through their employer should |
| liability coverage for the same price, or more, than | | | | have this type of policy. In part three of this series I will |
| someone with an umbrella policy and $1.25 million in | | | | discuss homeowner insurance in more detail, don't miss |
| coverage. | | | | it. |