Insurance coverage is a necessary evil in many areas of our lives and offers us a sense of comfort that we are protected from loss should a covered event occur. Many of these coverages are mandated. If you have a mortgage or drive a car, you are required to carry coverage by your lender or your state. Most recently, healthcare coverage has been mandated at the federal level. Some policies are voluntary, like life insurance, and are a way to protect our family should a tragic event befall us. We pay our premiums, mandated or voluntary, and hope that we will never need to use the policy.
How much do you spend on traditional insurance?
Have you ever added up how much you and your family pay for insurance coverage? The recent healthcare debate in the US has highlighted the cost of health insurance but less attention has been given to the total payout for all insurance policies. We took a detailed look at how much we pay and were shocked at the costs!
To provide some background information; we are a family of four with multiple vehicles, multiple real estate properties and a small start-up business. We have excellent employer provided health coverage through my wife’s job, with the company covering over $12,000 per year of the premium cost. We added up our auto, home, life, business and health (employee paid) costs and found that we pay nearly $8200 per year in insurance premiums (not including deductibles). That’s over $22.00 per day and only one policy has any cash value, a small whole life policy.
How much should you spend on an emergency preparedness protection policy?
As individuals who are trying to be more self reliant and prepared for life altering events, perhaps we should look at insurance a little differently.
What items do you need to provide for yourself and your family during a crisis? This is your emergency preparedness protection policy and it should cover the essentials like water, shelter, food and self defense.
Are you covered from loss in the event of a crisis that insurance won’t cover? What items do you need to provide insurance for yourself and your family during a crisis? This is your emergency preparedness protection policy and it should cover the essentials like water, shelter, food and self defense. All of these considerations should be included in your contingency planning whether you are concerned about the potential loss of employment, the impacts of a natural disaster or economic/geopolitical issues. It is essential to develop a backup plan, your Plan B.
How much are you currently paying for traditional insurance and will that insurance help you during a crisis? Is there room in your budget to start paying “premiums” on your preparedness protection policy to ensure that yourself and your family
survive thrive during a crisis? Having access to well water during a power outage and securing a supply of shelf stable foods are a great place to start. It will be too late once a crisis is occurring. The time to prepare is now! Just like our traditional insurance policies, we can hope that our preparedness insurance policy won’t ever be needed but it will certainly provide peace of mind that we are ready for whatever uncertainties may occur.