Insurance Explained — Every Type You Need
Insurance is the foundation of financial planning. One unexpected event without coverage can erase years of savings. This guide covers every type of insurance you need and how much coverage to get.
Life Insurance
Provides a lump sum to your family if you die. Essential if anyone depends on your income. Get 10-15x your annual salary in coverage.
How Much Life Insurance Do You Need?
Term vs Whole Life Insurance
Term vs Whole Life (India Guide)
Health Insurance
Medical debt is the #1 cause of bankruptcy. Health insurance is non-negotiable.
Health Insurance Types Explained
Disability Insurance
You are 3-4x more likely to become disabled than to die before retirement. Protects your income.
How Much Coverage Do You Need?
Use the DIME method: Debt + Income (10-15 years) + Mortgage + Education costs = Total coverage needed.
Free calculator: Insurance Need Calculator
Related Guides
Emergency Fund Guide
Sinking Funds for Big Expenses
Frequently Asked Questions
How much life insurance do I need?
Most financial advisors recommend 10-15 times your annual income. A person earning $75,000 should have $750,000 to $1,125,000 in coverage. Add outstanding debts like mortgages and education costs to this number.
Is term or whole life insurance better?
Term life insurance is better for 90% of people. It costs 5-10 times less than whole life for the same coverage. A 30-year-old can get $1 million term coverage for about $30-45 per month versus $300-400 for whole life.
Do I need health insurance if I am healthy?
Yes. One unexpected hospital visit can cost $10,000-$200,000 without insurance. Medical debt is the number one cause of personal bankruptcy. Health insurance costs $200-500 per month — far less than a single emergency room visit.