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Insurance can feel overwhelming. With so many types, terms, and providers, it’s easy to either overpay for the wrong kind or skip out on coverage you truly need. At West Egg Wealth, we believe in clarity, not confusion — and our goal is to help you use insurance as a smart financial defense tool, not a burden.
Welcome to Issue 3 of Wealth Wisdom!
🛡️ What Types of Insurance Do You Really Need?
🛡️ What Types of Insurance Do You Really Need?
Introduction
Auto Insurance
Health Insurance
Life Insurance
Homeowners or Renters Insurance
Long-Term Disability Insurance
Long-Term Care Insurance
Identity Theft Protection
Umbrella Policy
Final Thoughts from West Egg Wealth
Your Insurance Checklist
Insurance can feel overwhelming. With so many types, terms, and providers, it’s easy to either overpay for the wrong kind or skip out on coverage you truly need. At West Egg Wealth, we believe in clarity, not confusion — and our goal is to help you use insurance as a smart financial defense tool, not a burden.
Let’s be clear: the purpose of insurance is to protect your wealth from major risks — those events that could devastate your finances if you had to pay out-of-pocket. Insurance is not an investment strategy. It’s not a savings plan. It’s a shield for when life throws curveballs you can’t easily catch on your own.
We’ll walk through the eight essential types of insurance coverage you should consider. Along the way, we’ll show you what to avoid, how to shop wisely, and why this protection matters for your financial future.
Whether your state requires it or not (most do), auto insurance is a must. Cars are expensive, traffic is unpredictable, and accidents happen. The right auto policy can prevent a fender-bender or major crash from becoming a financial crisis.
Here’s what your policy should include:
✅ Must-Have Coverage
Collision: Covers your car’s repairs after an accident you caused.
Comprehensive: Protects your vehicle from non-crash events like theft, hail, flooding, or vandalism.
Liability: Covers injuries or damages you cause to others. This includes legal fees if you’re sued.
Pro tip: Go for at least $500,000 in liability protection. If your policy shows split limits like 250/500/250, that means:
$250,000 per person for bodily injury
$500,000 total bodily injury per accident
$250,000 for property damage
That’s a strong layer of financial protection for a modest monthly cost.
🧩 Optional but Smart Add-Ons
Personal Injury Protection (PIP): Helps pay your medical bills and lost wages. Available in select states.
Medical Payments (MedPay): Similar to PIP but typically with lower limits.
Uninsured/Underinsured Motorist Coverage: If someone hits you and they don’t have insurance (or not enough), this protects you.
Protect yourself, your car, and your wallet. That’s the purpose of good auto coverage.
Health insurance may be the most frustrating kind of coverage — until you need it. Then, it’s a lifesaver. Quite literally. One hospital stay for a heart procedure, injury, or major illness can easily rack up six figures in medical bills. Health insurance prevents that from wiping out your savings or putting you into debt.
🧠 What to Look For High Deductible Plans:
Lower monthly premiums, and they pair well with Health Savings Accounts (HSAs).
Coverage for Catastrophic Events: You don’t need coverage for every minor doctor visit — just the big stuff.
In-Network Access: Make sure your doctors, hospitals, and specialists are included.
💡 Cost-Saving Tips
Use employer-sponsored plans when possible.
Increase your deductible if you have an emergency fund.
Compare plans annually — don’t set it and forget it.
Consider health sharing ministries or cooperative health groups as an alternative, especially if you're self-employed.
Even if you're healthy now, health insurance protects your future self — and your family’s financial well-being.
No one likes thinking about death, but life insurance is an act of love and responsibility. If anyone depends on your income — spouse, children, aging parents — this coverage is essential.
❌ Avoid These Pitfalls
Don’t buy whole life insurance or cash value policies. They’re loaded with fees and perform poorly as investments.
Life insurance is not a savings account or retirement plan.
✅ What You Need
Term Life Insurance: Pure protection. Affordable. Straightforward. Get a term that lasts 15–20 years.
Choose a coverage amount that equals 10–12 times your annual income.
Skip extras like riders and investment options. Keep it simple.
As you build wealth, pay off your mortgage, and become financially independent, the goal is to eventually become self-insured — meaning your assets can take care of your loved ones even without a policy.
Your home is likely your biggest investment. Protect it. Homeowners insurance not only covers the structure but also your belongings and liabilities.
🏠 Homeowners Should Look For:
Extended Dwelling Coverage: Covers the cost to fully rebuild your home if necessary.
Personal Property: Covers what’s inside — furniture, clothing, electronics, etc.
Liability: If someone gets injured on your property.
Loss of Use: Helps with living expenses if your home becomes uninhabitable.
Add-on coverage may be needed if you live in a flood zone or earthquake-prone area.
🧳 Renters Need It Too
If you rent, your landlord’s policy doesn’t protect your stuff. A $20,000–$30,000 renters policy will cover most tenants.
Look for:
Personal Property Coverage
Liability Protection
Additional Living Expenses (like hotel stays during repairs)
📈 Tip from West Egg
Review your coverage annually, especially if your home has appreciated in value. Don’t rely on outdated coverage limits.
One of the most overlooked (yet critical) types of coverage. Think about it: What if you got injured or sick and couldn’t work for months — or years?
Long-term disability insurance replaces a portion of your income when you’re unable to earn it due to health reasons. It’s essential for anyone who relies on a paycheck.
🔍 What to Know
Aim for coverage of 60–70% of your income.
The average policy costs 1–3% of your annual salary.
Policies typically cover 2–5 years, sometimes up to retirement age.
Office workers often pay less than those in high-risk jobs. But anyone can become disabled — so don’t skip this.
A short-term disability? That’s what your emergency fund is for. Long-term disability? That’s what this policy is for.
Around age 60, it’s time to consider long-term care insurance. Why? Because 70% of Americans over age 65 will need some form of long-term care.
This includes:
In-home assistance
Assisted living facilities
Nursing home care
💸 The Cost Without Insurance
A private nursing home room can cost up to $110,000 per year — and those costs aren’t covered by Medicare. That means you or your family could drain retirement savings quickly.
🧾 Smart Strategy
Buy a policy around age 60.
Look for daily benefit amounts, inflation protection, and waiting periods that suit your budget.
Never bundle it with life insurance — avoid bundled policies that add unnecessary costs.
Long-term care insurance protects your retirement savings, your spouse’s financial future, and your peace of mind.
In today’s digital world, protecting your identity is as important as protecting your house. Identity theft can result in:
Stolen bank accounts or credit lines
Damaged credit scores
Massive legal headaches
🔐 What to Look For
Full Restoration Services: Someone should handle the cleanup for you — not just notify you.
24/7 Monitoring
Fraud Alerts and Recovery Support
Don’t just rely on free credit monitoring. A good ID theft plan ensures a specialist is assigned to your case who can restore your identity fully.
Think of this as extra armor on top of your existing insurance. An umbrella policy adds a second layer of liability protection — particularly if you’re building wealth or have a higher net worth.
🏹 Who Needs It?
Anyone with a net worth of $500,000 or more
Anyone in a profession or situation prone to lawsuits
Anyone who simply wants peace of mind
Imagine a car accident where you’re at fault — and the legal and medical bills go beyond your auto policy’s limits. Without an umbrella policy, your personal assets could be at risk.
💰 The Cost?
Around $200–$300 per year for $1 million in coverage.
Incredibly affordable — and worth every penny for the protection it provides.
At West Egg Wealth, we’re not here to sell you insurance. We’re here to educate, empower, and protect your future.
The right insurance gives you confidence that if life throws you a curveball — whether it’s a flood, a diagnosis, a lawsuit, or a break-in — you’re financially protected. Not every plan is necessary for every person, but every person should understand which policies are most relevant for their life stage, assets, and goals.
Let insurance play defense while your wealth-building plays offense.
✅ Auto Insurance
✅ Health Insurance
✅ Term Life Insurance
✅ Homeowners or Renters Insurance
✅ Long-Term Disability
✅ Long-Term Care (if age 60+)
✅ Identity Theft Protection
✅ Umbrella Policy (if net worth > $500K)
Stay protected, stay prepared, and live abundantly.
— The West Egg Wealth Team
In a recent blog from 2024, I took a deep dive into the power of budgeting and how it can truly transform your financial future. From practical tips to mindset shifts, it’s a must watch video for anyone ready to take control of their money. You can check it out and watch the full video by clicking the play button on the left.
If you’re new to West Egg Wealth, be sure to click on our Getting Started icon. There, you’ll find downloadable materials, free guides, and practical tools designed to help you build stronger financial habits and gain confidence with your money. It’s the perfect place to begin moving toward better financial health and long-term stability.
If you have any questions, thoughts, or comments you'd like to share, I'm always happy to hear from you - just send a message to info@westeggliving.com
I'm here to help!
Thank you for joining us for this edition of Wealth Wisdom! We hope you found valuable insights and encouragement as you take steps toward a stronger financial future. It’s an honor to walk alongside you as you grow in financial knowledge, confidence, and peace of mind. Remember, you’re not alone on this journey—and we’re here to support you every step of the way.
Stay tuned for next month's issue packed with more tips, insights, and motivation. Until then, be kind to yourself and keep moving forward — you’ve got this!
The content provided on this West Egg Wealth is for informational and educational purposes only and should not be considered financial, legal, or professional advice. Always consult with a qualified professional before making any changes to your personal finances. Individual results may vary and West Egg Wealth makes no guarantees regarding specific outcomes.
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I love the video on this one.
I will try dinking water every hourr like I am trying to go 250 steps each hour.. Encouraging idea.
This is great information. I love the new layout. I cannot wait for the next edition!!!
Thanks Riaan.
Great article!