How Can I Implement an Insurance Budget?

Insurance Budget

As you grow up, the risks you take and the things you need will change fundamentally. Therefore, forecasting an insurance budget is super important. For example, if you're planning on having or adopting a child, you might need to get better health insurance than you would on your own.

 

Here are the steps to formulating your insurance budget:

  1. List all of your current insurances, the type, and the costs for each.
  2. Prepare columns with increments of ten years, starting with your current age.
  3. Project the insurance you might need. For example, if you'll have kids in the next ten years you might need better health insurance or if your family is prone to certain health conditions. Additionally, as you reach retirement age, you'll need better health insurance as more medical problems are more than likely to appear.
  4. Assign a dollar cost to each type of insurance.
  5. Review for assistance with insurance through the government and your employer.
  6. Calculate a cost for each year of life based on this.
    image.png(Penn State University)

 

This can help you forecast your future reality when it comes to insurance.

 

Check Your Knowledge:

Check Your Knowledge: Insurance Planning

All Chapters:

[Chapter 1]: Introduction to Insurance Planning

[Chapter 2]: How do I Know if My Insurance Plan is Right for Me?

[Chapter 3]: What Are Some Key Terms I Should Know?

[Chapter 4]: How Do I Find the Balance Between Cost and Coverage?

[Chapter 5]: What Mistakes Should I Avoid at All Costs?

[Chapter 6]: How Can I Implement an Insurance Budget?