- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Introduction
Insurance is critical to financial stability and financial self-reliance. Because policies, coverage, and premiums vary among providers, it is wise to research a number of insurance alternatives before making a decision. In addition to understanding and owning life insurance and health insurance, you should own and understand three other important types of insurance: auto insurance, homeowners/renters insurance, and liability insurance.
Auto, homeowners, and liability insurance are valuable assets for any family working toward financial security. Auto insurance is critical in the event of an accident. Homeowners insurance is critical in the event that a fire or another disaster damages or destroys your home. Liability insurance is critical in the event that you are found negligent in some activity. These types of insurance ensure that when the unexpected happens, you will not lose the things you have worked for all your life because you do not have the necessary funds to pay for damages.
As with all types of insurance, the amount of insurance and the type of coverage you carry should be updated annually. Your insurance policies should also be updated when you acquire additional personal property or when inflation increases the value of your home or other assets.
When you have completed the section, you should be able to do the following:
- Explain the basics of auto insurance and know how to reduce your costs.
- Explain the basics of homeowners insurance and know how to reduce your costs.
- Explain the basics of personal liability insurance.
