Buy the right amount of insurance
Doing a balancing act on your life insurance, medical insurance, and home and auto insurance policies is tough, but it is a vital part of your personal finance strategy in the long run. Many people either end up have too little coverage against risks, while many others pay excessively in insurance premiums even when their risks are moderate.
When it comes to life insurance, consider choosing a term life policy. It is always more affordable, and you can purchase as much as you need. If you have a solid history as a safe driver, perhaps you don’t need more car insurance coverage than what the law in your state mandates. For health insurance, take out the maximum deductible you can afford, particularly if you have set aside a good emergency fund to cover the deductible.
