Insurance
Life, health, home, auto, disability, and umbrella insurance — what you need and how much.
Insurance is how you transfer financial risk you can't absorb to a company that can. The decisions that matter most — how much life insurance, whether to buy disability coverage, what deductible to carry — come down to your income, dependents, assets, and risk tolerance. Federal law (ACA, ERISA) shapes health and employer insurance; everything else is regulated state by state through departments of insurance.
Key laws
Key agencies and resources
Important deadlines and limits
| ACA Open Enrollment | November 1 – January 15 (coverage starts February 1 for late enrollees) |
| Medicare Part B enrollment window | 3 months before to 3 months after your 65th birthday month |
| COBRA election deadline | 60 days from loss of employer coverage |
| Special Enrollment Period trigger | 60 days from qualifying life event (marriage, birth, job loss) |
All insurance questions (6)
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How do health insurance deductibles, copays, and out-of-pocket maximums work?
Your deductible is what you pay before insurance starts covering costs. Once you hit your deductible, you pay a share (coinsurance) until you reach the out-of-pocket maximum, after which insurance pays 100%. For 2026 ACA marketplace plans, that cap is $10,600 for an individual and $21,200 for a family.
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How much life insurance do I need?
A common starting point is 10 times your annual income, but the more accurate answer comes from adding up what your family would actually need: income replacement, mortgage payoff, debts, and education costs, then subtracting savings and existing coverage you already have.
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Term vs whole life insurance: which should I get?
For most people, term life insurance is the right choice — at age 30, whole life costs roughly 15–18 times more than a comparable term policy, and for the years when you actually need life insurance, term does the job. Whole life makes sense in a narrow set of situations involving permanent coverage needs or estate planning.
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What does homeowners insurance cover?
A standard homeowners policy covers four things: the structure of your home, your personal belongings, liability if someone is injured on your property, and temporary living costs if your home is uninhabitable. Floods and earthquakes are not covered and require separate policies.
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What is disability insurance and do I need it?
Disability insurance replaces a portion of your income if you can't work due to illness or injury. More than 1 in 4 workers will experience a disability before retirement, and Social Security disability benefits average only about $1,584 a month — far below most working incomes. If your income supports your household, you likely need it.
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What is umbrella insurance and do I need it?
Umbrella insurance adds a layer of liability coverage — typically $1 million or more — on top of your existing home and auto policies. A $1 million policy costs around $200 a year. It's worth having if you have assets to protect or engage in activities that carry lawsuit risk.