No one expected 2020. And 2021? Yeah. Not much better. So who knows what 2022 will bring. Extremer extreme weather? More pandemics? Budget-busting inflation? Zombie hornets? (At this point, we wouldn’t be surprised.)
No matter what 2022 brings, there are things you can do to set yourself up for success. Here are five simple ways you can protect your future and your finances.
1. Auto Insurance: Are you underinsured?
If you got in a car accident, are you sure your car insurance would cover you? Many people opt for their state’s minimum requirements. In other words, bare bones. But this is a big mistake. Call us old-fashioned, but we believe your car insurance should actually, you know, cover you. State minimums usually don’t provide enough coverage.
Work with an independent insurance agent to make sure you have the right amount of collision, comprehensive and liability coverage. And who knows? You might even find you’re overpaying for things you don’t need and could save some money.
2. Homeowners Insurance (or Renters): Find your sweet spot.
Just like car insurance, your homeowners insurance also needs to actually cover you if your home was damaged or destroyed. A lot of people don’t really understand how much homeowners insurance they need. Just one example is flood damage. Most standard homeowners insurance policies won’t cover it. So if you live in a flood zone, you’ll need flood insurance.
Do you have the right insurance coverage? You could be saving hundreds! Connect with an insurance pro today!
Don’t roll the dice when it comes to your biggest investment—your home. Make sure your homeowners insurance covers all that life could throw at you.
And if you’re renting, renters insurance is a no-brainer. It pays to replace your belongings if they’re ever lost, stolen or damaged. Plus, it’s cheap.
3. Health Insurance: It pays to shop around.
Health insurance is complicated—and expensive. But it’s still really important to get right. Medical expenses are one of the biggest causes of bankruptcies in America. And health insurance plans offered by your employer are sometimes not your best option.
An independent insurance agent can shop around for you to find the best bang for your buck.
4. Term Life Insurance: Protect what matters most.
We’re just gonna come out and say it. If you don’t have life insurance, you and your family are at risk. If you have people in your life who depend on your income, term life insurance is a super affordable way to add a solid layer of protection. (It’s called term because it lasts for a set amount of time before it expires.)
A good rule of thumb is to have at least 10–12 times your annual income. So if you made $60,000 per year, you would get a policy with a payout of at least $600,000.
Do yourself (and your family) a favor and start the new year with a new policy.
5. Identity Theft Protection: Don’t let the bad guys win.
Let’s face it. It’s a dangerous world out there. And the bad guys aren’t just lurking around in the alleyways or in Hollywood movies. They’re real, they have computers—and they’re stealing people’s identities.
Identity theft protection is a great way to protect your time and money if your identity is ever stolen. Identity theft protection helps piece things back together again so you can get your name back and get on with your life.
Protect Yourself in 2022
As January rolls around, there’s no better time to put in place some extra layers of protection. Think about how good it will feel when you check these things off your list at the beginning of the year.
And as the old saying goes, an ounce of prevention is worth a pound of cure. By spending just a little time now to get these five things in place, you’ll be prepared when Murphy strikes.
About the author
Ramsey Solutions