Insurance: You need adequate insurance protection

Make sure you are appropriately covered by medical, dental, life, property, and casualty insurance. Properly protecting your family from potential losses stemming from accidents, medical needs, or death will give you peace of mind and security for your family.

Watch our workshop on Reviewing Your Insurance Protection

Medical & Dental Coverage

Take time to review your current medical and dental coverage. Typically, you can only make changes during your plan's open enrollment period each year. When you consider making changes, remember that in addition to monthly premium costs, it is important to pay attention to out-of-pocket maximums as well as physician and hospital networks. Also, compare the plan benefits with past healthcare and prescription needs so you can make the best choice for your family.

Evaluate your Insurance

Life Insurance

Life insurance is an essential part of financial planning because it allows you to pay off debts and to help your family with cash flow. Determining how much and which type of insurance you need isn’t always easy. There are two main types of life insurance:

  • Term insurance: Term insurance is a good option when you only need a death benefit. Terms usually last from 10 to 30 years, although term insurance through an employer generally lasts for the term of employment with the company.
  • Cash Value Insurance: Cash value insurance is appropriate when you want both a death benefit AND an investment vehicle. Cash value insurance is typically more expensive than term insurance.

Obtain life insurance while you are still young and healthy. If you wait, your premiums will be higher and you may become uninsurable due to health problems. Your employer provided benefits offer various types of life insurance. Please explore the options available to you. These employer-provided coverage options are relatively inexpensive, but they end if you leave employment.

Property & Casualty Insurance

It’s important to understand your current coverage for all different types of losses that could occur.

  • Automobile insurance coverage needs:
    • Bodily injury liability: If you are at fault, this covers medical expense for those injured.
    • Property damage: If you are at fault, this covers the other person’s auto.
    • Uninsured/underinsured motorist: Coverage if another person causes the accident and has no insurance.
    • Collision: Repairs to your automobile due to a collision. Covers a maximum up to the value of the vehicle. Has a deductible.
    • Comprehensive: Repairs to or replacement of your car for theft or damage not due to collision. Covers a maximum of up to the value of the vehicle. Has a deductible.
  • Home insurance needs:
    • Structure: Repair or replacement of the home.
    • Personal belongings: Replacement of your personal belongings.
    • Liability: Covers bodily or property damage in the event of a lawsuit against you.
    • Additional living: Expenses due to being out of your home during repair or rebuilding.

Umbrella Insurance

This provides additional coverage for liability in excess of the coverage available under the policies described above.

Determine and secure needed protection

  • Use our online life insurance calculator.
  • Use this formula: Annual income you need ÷ 5% = How much life insurance you need. For example, if you need $45,000 per year and divide that by 5% (or 0.05), you should apply for $900,000 of life insurance.
  • To compare premiums and policies, visit
  • Contact your insurance agent and review your property and casualty coverage.
  • Review the insurance section in our Core Financial Principles Booklet for some rules of thumb for coverage amounts for common types of insurance.

After understanding and setting up your insurance needs, find your Core Financial Principles Task Checklist and check off “Review and establish insurance protection.”.