How much life insurance do I need?
DIME method: Debt + Income (×10) + Mortgage + Education. For most families $500k-$2M term policy.
Term or whole life?
Term for 95% of people. Whole only for advanced estate planning at high net worth.
What is the average homeowners insurance cost?
NAIC 2023 avg $1,428/yr nationally; $3,500+ in FL/LA post-hurricane repricing.
Do I need umbrella insurance?
Yes above ~$500k net worth. $1M policy costs ~$200/yr.
What is ACA subsidy?
Premium tax credit reduces marketplace plan cost. IRA extension through 2025 eliminated 400% FPL cliff.
Should I buy disability insurance?
Yes during working years. More likely than death. Employer LTD usually inadequate.
What does homeowners insurance not cover?
Flood (separate NFIP policy), earthquake (rider), normal wear-and-tear, intentional acts, business operations.
What is replacement cost vs ACV?
Replacement = cost to rebuild new. ACV = depreciated value. Always choose replacement.
Can I shop insurance every year?
Yes — rates drift. Shop at renewal. Bundling home+auto often saves 10–15%.
Is whole life a good investment?
Usually not. Returns typically 2–4%. Index funds historically 7%+. Insurance is insurance, not investment.
How does auto insurance pricing work?
Credit score, driving record, vehicle, location, coverage limits. Shop 3+ quotes annually.
What is umbrella deductible?
Usually none — kicks in above underlying policy limits (auto or home). Requires minimum underlying coverage.
Should I raise my home deductible?
Yes — $1,000 → $2,500 typically saves 15–25% annually. Self-insure small claims.
Is renters insurance worth it?
Yes — $15-25/mo for $30k+ contents coverage plus liability. No excuse to skip.
What is cobra vs aca?
COBRA: continue employer plan 18 months (you pay full premium + 2%). ACA marketplace usually cheaper for most.