Yahoo has a list of 10 retirement pitfalls and I'm going to list and comment on them all. Here's today's pitfall:
Neglecting insurance: Insurance exists for a reason: to protect you against an unlikely but high-cost event such as a fire, an unexpected serious illness, a natural disaster or a major auto accident. People who forgo insurance in an attempt to save money run the risk of putting their entire retirement savings in jeopardy if an unfortunate event takes place in their lives. You want to make sure that you are adequately insured to prevent this from happening.
Ok, I'll admit it -- insurance is one of the most boring financial topics to discuss, plan for, consider, write about, etc. But did you ever notice that often times the issues that are the hardest to deal with are also the most important? Thus is the case with insurance. That's why I regularly write about the topic (though probably not as frequently as I should). It's also why I carry medical, car, home, life, and disability insurance.
As stated above, without insurance only one major accident or illness can wipe out your entire savings and thrust your retirement into an uncertain future. Thus, having adequate insurance coverage is one of the major keys to ensuring you have a great retirement.
For more thoughts on insurance, check out the following links:
Comments