4. Get life insurance. If you have someone who depends on you financially, you need life insurance. You may have some life insurance coverage through work, and that’s a nice benefit to have. But often it’s only one or two times your salary. And while that may sound like a lot, think of what would happen to your spouse or partner financially if you died—they may be paying the mortgage and car and bills on just one salary instead of two. Plus, life insurance through the workplace generally goes away when the job does.
Getting an individual policy that you own makes sense. It’s very affordable when you’re young and healthy (a healthy 30-year-old would pay around $13 a month for a 20-year, $250,000, level-term policy) and you’ll have that coverage as long as you keep paying the premiums. For an estimate of how much life insurance you need, visit the easy online Life Insurance Needs Calculator.
5. Evaluate your disability insurance needs. Without your paycheck, how long would you be able to make your mortgage or rent payment, buy groceries or pay your credit card bills without feeling the pinch? If you’re like most, it wouldn’t be long at all: Half of working Americans couldn’t make it a month before financial difficulties would set in, and almost one in four would have problems immediately, according to a Life Happens survey.