Is Social Security Enough?

Social Security without private medical insurance does not provide adequate protection for elderly people. The chapter states that Medicare includes substanial deductibles and coinsurance payments, and in the event of a catastophic illness these payments could deplete someones savings. Medigap insurance is a most for people only with Medicare. Medigap insurance is meant to cover those health care expenses not paid my Medicare. Although Medigap may not fully reimburse someone for the health care expenses it is a lot better than Medicare. It is crazy for someone to go without a private insurance along with Medicare, especially for an aging population that is more at risk for health problems.

It is also important to start thinking about retirement savings. It is well known that Social Security is not going to be enough to cover someones financial expenses. It is also know that Social Security might not even be around when most of us retire. It is a scary thought but the fact is even in our early 20s we all need to start saving for retirement. I know when I retire I want to be traveling and relaxing, not worrying about my finances, that is why I have already started saving for retirement, it might sound crazy but it is very important!

Home and Auto Insurance a Waste?

Even if you never file a claim against your home or auto insurance I do not believe they are a waste of money. First, they are legally required so if you got pulled over and were not able to show you had at least the minimum amount of auto insurance then you could get a large fine, and possibly lose your license. Secondly, having insurance gives you piece of mind. Knowing that your home and car will be protected against natural disaster or an accident. Of course you need to be aware of what your insurance policy covers. If you do not have insurance you may set aside money to be used in case of an accident. But, if you had insurance you could use that money for other savings, such as a vacation or college fund. Finally, even if you have never filled a claim before it is still wise to keep your insurance because you never know when you may need it!