Practical Ideas to Achieve Financial Freedom – Part 7

December 31st, 2007 | Stacey | Financial Independence, Financial Freedom Opportunities, Financial Freedom

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Our series of practical ideas to achieve financial freedom has discussed a range of various products and services you can use to build your income and save money over time. Yesterday we went into various ways to save for retirement along with the value of your home as your largest asset. Today we will talk about ways to become financially free through insurance options.

Besides social security, which you paid into for most of your life, you can also pay for life insurance to ensure the people you love will have support after your death. Types of life insurance include term life, whole life, universal life and variable life, depending on your personal and financial goals.

Health insurance is another form of insurance that protects your financial freedom by covering expenses in case of injury or illness. Disability insurance covers you if you become unable to work due to injury or illness. Long term care insurance will pay for nursing home care, assisted living or home health care if it becomes necessary.

Besides insurance on yourselves, homeowners insurance will protect the largest financial investment you may make in case of damage, theft, fire or other financial liability. Automobile insurance covers your vehicle and bodily injuries in the event of an accident.

Insurance is essential to protect your financial independence because one incident or accident could wipe you out for a long time. Having insurance will protect what you already have so you don’t wind up losing everything you’ve earned.

In our final entry of practical ideas to achieve financial freedom, we will discuss estate planning and using a financial advisor to build your wealth.