Finances

By Bob Berens

Bob Berens offers LoveLines readers leading advice on managing personal finances with a Christian perspective keenly in mind. Check with Bob's column here regularly to find out how you can navigate your personal finances through today's trecherous financial waters. Keep you finances secure and expenditures more effective with Bob Beren's help!

Current Finance Topic

INSURANCE

Home owner's insurance or renter's insurance will protect you from losing everything you own from disasters like fire, casualty or theft. Whenever I see fire victims on the news and hear them cry that they have lost everything I am amazed at their lack of planning. A fire should be a terrible inconvenience but not a tragedy as long as no one is injured. Renter's insurance may be as low as $50 to $100 per year and homeowner's insurance is usually required if you have a mortgage.

I am far less enthusiastic about life insurance. Basically, if you have dependents you may have to decide how much term or whole life insurance you need to protect their future. In general I believe term insurance covers risk and whole life gives you future cash value with protection. Most money managers I have talked with rate whole life insurance as a poor investment tool. You get a lot less interest from insurance than with other investments but you have to ask yourself whether you will make those other investments with the extra money. See the section on IRAs and investments.

Bob Berens, Copyright Pending

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