Video
- 66 minutes
Lesson Prep
- Bring a box of tissues to class, some class members might get emotional
- Everyone 18 years and older needs to have a will
Checklist
- Welcome class members back!
- Review the Baby Steps
- Do a budget checkup
- What impulse purchases did you make (or avoid) since the last lesson?
- Instruct everyone to turn to page 91 in their Member Workbook
- Take attendance and watch the video
- Look for your coordinator cue before the One-Minute Takeaway to get ready for the Activity
Notes
- Insurance protects the things that will make you wealthy
- The purpose of insurance is to simply transfer risk, this is your defensive game plan
- There are eight types of insurances that you need
Insurances to avoid
- Credit life insurance and credit disability insurance on debt you owe
- Mortgage life insurance
- Double indemnity insurance for accidental death
- Cancer insurance
- Prepaid burial insurance
- Return of premium
- Waiver of premium
- Dental and Vision insurance
Insurances you need
- Auto insurance
- If you have a full emergency fund, think high deductibles
- Home owners insurance
- Get enough to
- Rebuild your home
- Replace your stuff
- Cover injuries and damages that happen at your property
- Reimburse living expenses after the loss of an insured home
- Get enough to
- Rental insurance
- If you are renting, always get renters insurance
- Umbrella policy
- Only get if you have a net worth of at least half a million dollars
- Health insurance
- Raise your deductible to lower premiums
- Long-term disability insurance
- Covers loss of income if you are not able to work for a long period of time due to an illness or injury
- Find a policy that covers 60-70% of your annual income
- Covers loss of income if you are not able to work for a long period of time due to an illness or injury
- Long-term care insurance
- Covers assisted living care, in-home care and nursing home care
- Get if you are 60 years or older
- Covers assisted living care, in-home care and nursing home care
- Identity theft protection
- Make sure it includes restoration services that assign a counselor to clean up the mess
- Wills
- Everyone 18 or older needs a will
- Life insurance
- Replaces income that’s lost due to death
- Term life insurance is the only life insurance you should get
Activities
- Have one person in your group read the Activity on page 98 out loud. Then, take a few minutes to complete the Activity together. I’ll be walking around the room if you need help.
Discussion Questions
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When have you let the cost of insurance dictate how much insurance you get in a certain policy? How does this lesson challenge you to think differently?
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How do you see your fully funded emergency fund fitting into your insurance plan? How can you make sure you have the right balance between the two?
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Everyone 18 or older needs a written will. Do you have a will? If not, what has been holding you back from getting one?
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Can you imagine building wealth to the point where you can self-insure? Why or why not? How have the Baby Steps moved you closer to making that a reality?
Wrap Up
- Go to page 101 and read through the action steps
- Review all your coverage/insurances
- Keep working on your budget
- You need to be aware of how much you have spent on certain categories
- You need to make a monthly budget
- You need to be having Budget Committee Meetings