Suze Orman on Insurance

DISABILITY INSURANCE
Example:

  • If you are self-employed and making 100K/year and your business expenses are 60K/year, disability insurance company subtracts cost of business to your income which leaves 40K and that is what you are insured for.
  • If you are not self-employed you will be insured up to 66% of your income.
  • If you have disability insurance, call insurance company and find out when will they cover you, what will they cover you for – will they cover you only if you can’t do your own occupation or will they cover if you can’t do any occupation.

HOMEOWNER’S INSURANCE FOR SINGLE FAMILY RESIDENCE
HO3 Policy – covers everything – structure and contents

CONDO INSURANCE M HO6 Policy

  • Condo association fees cover the outside of the structure.
  • Association policy covers the units in the building but not the interior of each unit.
  • It does not include electrical /wiring, plumbing and heating/cooling system – just covered by HO6 policy.
  • Inside of apartment is covered by HO6 policy – make sure your HO6 Policy covers to actually replace all of the contents within your condo.
  • Each condo association differs – check your policy.

SUZE SAYS:
I HATE WHOLE LIFE INSURANCE
I HATE UNIVERSAL LIFE INSURANCE
I HATE VARIABLE LIFE INSURANCE
THE ONLY TYPE I LIKE – FOR THE PURPOSES FOR INSURING YOUR LIFE – IS TERM INSURANCE!
If you are smart with the money you have today and you get rid of your mortgages, car loans and credit card debt and put money into retirement plans you don’t need insurance 30 years from now to protect your family when you die.

IF YOUR HOME IS DESTROYED, MUST YOU REBUILD ON THE SAME PROPERTY OR CAN YO DO IT ELSEWHERE?
Many insurance companies only give full insurance value only if you rebuild in the same location – check your policy.
If insurance company does not allow you to rebuild anywhere for full insurance value, change companies.
Everything that you would get – contents, additional living expenses - is based on actual insurance amount for the structure.


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