Why You Are Probably Underinsured #233

you probably shouldn't have insurance. Uh And we're gonna talk about it in the form of the types of insurance that you should probably have. We're gonna talk about the types that you probably need to have, the types you don't need to have. And we are going to answer that question why most people probably are under insured. The answer is pretty short, but we'll make sure to cover that as well. Unless you think insurance is boring, will make insurance really fun this episode for the first time

maybe ever. But Matt, before we get to that, you did something that was borderline frugal or cheap. I'm not sure where you landed in that and trying to tackle a repair to your rental property. Yeah, you're ready to hear my frugal win. I'm ready. It's totally a frugal win at this point. If it doesn't work out, then it's gonna end up biting me in the butt and

it'll be considered a cheap move, cheap tail. Yeah. Well, at one of my properties in between tenants, one of the shelves in the refrigerator, right, you know, you get your glass shelves and they kind of canda lever and they're on the little brackets in this glass shelf. It broke. Totally sucked because I knew that meant I was gonna have to order a new part. Looked up that shelf.

It cost something around a hundred and twenty bucks for a brand new glass like I don't know, Ken Moore refrigerator shelf, which seems like a little bit of overkill for a refrigerator shelf. Absolutely, And plus this refrigerator only has like two shelves left, so it needed to have another shelf in there. But then I had a wild idea, and I called up our local glass shop and I got a quote on a piece of glass that would

fit in that shelf. That were the exact dimensions. Uh, and it was going to be less than thirty bucks, So of course I jumped on that. Man, we're talking a quarter of the price. I thought this was a great way to save some money. So if you happen to be in a position like this, maybe where you you know, busted out a shelf in your your refrigerator, look to a local glass company instead of ordering that part directly from the manufacturer. Some people would break a

shelf and they'd be like, I need a refrigerator now. Well. I was really close to doing that because I wasn't even sure if this was a part that they still made, because this is an older refrigerator. And I thought, you know what, Okay, it's finally time to to get a new fridge. But then I thought, man, that fridge works really well still. It's it's old, but it still works. You know, we talked about refrigerators recently. How you got a new one. This is also the kind that's got

the freezer over the fridge. But it's just a solid fridge. And I wasn't yet willing to to buy a floor model yet at the local best buy. But one thing I did want to mention that if you are going to order a piece of glass on your own, make sure that you get tempered glass, because that's the kind of glass that is used in a fridge, right. It's it's the special kind of glass that when it breaks, it like breaks into a million pieces. That way, there aren't like big sheets of glass that end up like,

you know, slicing into your arm, that kind of thing. Uh, it's stronger, I think as well. I don't really know how tempered glass works, but so they have to special order it. It's not something that they can cut in person because that kind of defeats the whole purpose of it being tempered. I don't exactly know how temper glass works. I just know that they had to order, uh, that exact dimension, So make sure you get the exact dimensions they'll order it. It shows up, you slide it in there,

and you're good to go. Man. Well, I love you ended up saving ninety bucks, and that fridge it's going to keep on going. I hope it continues working well for years and years for you, man. And it's just such a great idea to do whatever you can to

extend the life cycle of the plants like that. Yeah, that's one of the things I hate is something that works pretty damn good except for like one little thing that you can't replace or that seems too expensive to replace, and then that thing gets hauled off to the landfill somewhere. So it's a good way to kind of keep some of these giant appliances from ending up in the dumps as well. Yeah, no doubt. All right, let's make in

the beer that we're having on the show today. This one is called p B and J Sour by Shades Brewing, So it's a sour ale that tastes like a peanut butter and jelly sandwich. And we'll give our thoughts on this one at the end of the episode. Yeah, the huge things to Andy for donating this one to the show. But Joel, let's talk about insurance, buddy, let's do it.

Let's get onto the subject at hand. We're talking about why our listeners, why a lot of them out there are probably underinsured, and Matt, the thing is a lot of them might not even know it. So in this episode we need to discuss a few types of insurance that everyone should be considering that that might not even be on their radar, and I said, we're gonna try to make it fun. We're gonna do the best we can, but it's still insurance. It's still insurance. It's still kind

of a boring topic. But we're gonna do our best not to sound like insurance sales people because that would, of course be annoying. And we're going to try and discuss how to think about insurance well too, so we don't overdo it and spend too much, but we also don't want to forsake it altogether when we do need

to be insured. And first, let's discuss the overarching role that insurance should play in our lives, Matt, because I think that can kind of be helpful as we're attempting to frame this conversation and helping people think about the role that insurance plays in their lives. Yeah, so it's a good point. You know, it definitely depends on what

type of insurance that we're talking about. You know, some like health insurance, you'll probably want to utilize often as that's how you actually realize the value of that insurance. But then most others, like home and auto insurance, you'll you want to just view as a necessary backup plan. It's there in case you need it, but you're you know, you're mostly hoping that you won't need it. It's kind

of like that through to six months emergency fund. It's there to provide some peace of mind, and then you can actually utilize it if you find yourself in a precarious position, maybe involving you know, job loss or a major unforeseen expense. Yeah, that's a good primer. I think that helps set up the conversation. Right. Some of these insurance products that we're gonna talk about are ones that we hope we never use, so we're gonna talk about how you buy it then if you're hoping not to

use it. And then other types like health insurance, Yeah, you're gonna use it frequently, even just for a regular doctor visit. Right, Yeah, Okay, how about quick little analogy, Joe. It makes me think of if you have a little kitchen fire. There are some types of insurance that are like using a fire extinguisher. Like if you have an actual kitchen fire, which you hope rarely ever happens, you do want to use the fire extinguisher and put it out.

That would definitely be the case for something kindastrophic happening to your actual home or you know, life insurance, that kind of thing. But oftentimes once you use it, uh, it's kind of like a one time thing, you know, like you use it and then you lose it, you're likely going to have to completely replace that policy. But then there are other types of insurance, like health insurance that you can view as more like a tool. In that case, it makes me think of like a rainshood.

So you're doing you're cooking, you haven't had a fire yet, but there's a lot of smoke, and so you want to make sure to kick that fan on and get that smoke out of there because you don't want to cough on that stuff. Is that preventative measure? Yeah, there you go. Yeah. But part of the problem with insurance to Matt is that buying insurance is so not fun, Like, it's not a joy to do, and so most people

avoid it partly because of that. It's either a something they haven't thought about or be it's something annoying, and so they're just putting it off. Nobody really wants to spend their money on insurance either, right, It's not a sexy purchase. It's not like getting a ski do or a jet ski or whatever you I don't know, you know, one of those awesome things to play on the water, or a boat. I mean, there are so many fun things you can spend your money on. An insurance it

certainly is not one of them. It just kind of exists in the background for so many people. But it's important to realize right that certain insurance products are really important for us to have, and in those instances, it's essential for us to go ahead, bite the bullet and do the grown up thing right, because what we're really doing if we don't have the insurance that we need is we're putting our our finances at risk, and in some cases we're putting a whole lot of our net

worth at risk by not being properly insured. I'm kind of still wondering why why you use boat or a ski do as an example instead of like a bike. I just think of like and we use bike as as examples way to bout some problems and when we need to appeal to other people. When you think about the goofiest, most quote unquote fun thing you could spend it on, I don't know. My mind always goes to like a jet ski or something like and I'm like, I see like the smiles on people's faces when they're

riding around on those things, just happing a blast. Yeah, it looks like they're having a good time. But Joe, Okay, you mentioned properly insured though, Like that's another question that we should ask, like what does it mean to be properly insured? And that's largely determined by a lot of individual factors. You know, whether you own a home or whether you rent, if you have dependence like a partner or a child, and you know where you are in

the wealth building process. So we're gonna get into the specifics while also giving you know, some general guidelines for how to think about insurance, and then which types of insurance are most important because you know what you need insurance wise, that will vary from you know what your neighbor you know, or your best friends sitting across from you what they need. With each type of insurance we discuss, will attempt to bring up the nuances of how your

age and how your life stage will impact that decision. Yeah, there's gonna be a lot of helpful information in this episode, but also it's not going to be completely comprehensive because we're talking about a lot of different kinds of insurance, and we're gonna do our best to kind of run the gamut, but we're not going to dive incredibly deep because the episode would just be way too long then, So, but we'll talk more about insurance, and in particular, we'll

get to some of the insurance policies that you should be avoiding. First off, we'll get to those right after the break, right, Juel, back from the break talking about insurance, and let's start to cover now some of the most common types of insurance that we hear brought up. And here's the thing. Before we get into some of the legits insurance policies that people should consider, let's talk about some of the popular ones that we want folks to avoid,

including extended warranties. Man, those are basically a type of insurance that many people often get when buying products, especially consumer electronics. They sell it right there at the register. But those are actually one of the worst types of

insurance that we can buy. Yeah, Man, I think one of the problems with extended warranties is it's got this positive connotation for people when when we're protecting your investment exactly exactly, but well, you don't realize there's so many reasons why, and extended warranty is a bad bat and that's because you're ensuring a rapidly depreciating asset and also typically one that rarely breaks. Yet typically a third of

people end up purchasing them. That's in large part because they're sold and Matt, that's what the problem is in a lot of insurance areas is that products that are not good for people are often sold to them. They're not typically something that people go out there looking to buy. But that is of course specifically true when we're talking

about extended warranties. And let's take a modern flat screen TV for example, right, the failure eight for one of those TVs that you bring home within the first three years is like five. There's an incredibly small chance that your TV is gonna break down and you're gonna have to repair it within the first years of ownership that

you'd be covered by that extended warranty. But on a five TV, you'd likely be paying something like a hundred and fifty dollars for that insurance policy, that extended warranty that you're unlikely to actually use and That's the way it is for so many gadgets and personal electronics that

we buy. If you were to consistently buy extended warranties on every personal electronic device that you brought into your life, you'd be forking out a lot more money over time than you would be saving yourself when it comes to

repairs for for those devices that you brought home. Yeah, you know when when it comes to these warranties, Man, since we're human, we always remember the one time that an extended warranty actually came through in a clutch, not the dozen other times that, you know, what we paid for it and when we didn't actually need it. Oftentimes we're better off self insuring, and what that means is just having you know, savings and money in the bank, or just finding a cheaper way to ensure our products.

For for instance, cheaper insurance for a cell phone would be just to have a case on it. Just think about how much more affordable and stylish uh that case would be versus you know, paying for an extended warranty. And additionally, when you are buying any electronics, it's incredibly helpful to make sure that that purchase is done with a credit card that extends the manufacturer's warranty, you know, basically giving you some of that additional coverage for free.

And even if you haven't put it on a solid credit card, don't forget about just the manufacturer's warranty. Uh. Oftentimes with electronics you have at least one year and you know what, even if there is a problem and maybe you're just outside that one year window, reach out to the manufacturer like I did recently with our with our dishwasher, and you know what, maybe that really worked out for us. They were willing to make a one

time courtesy repair and we've got basically a bran new dishwasher. Yeah, the credit card I used to buy the computer that I bought a year ago, double the warranty from from the manufacturer. I have a four year warranty on my computer. That's so good, right, Who needs the multi hundred dollar policy that goes along with it, the extended warranty. Basically they'd just be throwing money out the window if I

got that. And at the same time, to Matt, one of the things people can do is to make sure they look at ratings on a site like Consumer Reports or JD Power and they can find out which products are more reliable before they make the purchase too. I feel like that's so helpful and actually gives you peace of mind in avoiding the extended warranty altogether. All right, now, let's talk about pet insurance. That's another type of insurance that we don't think is a good idea for most people.

And it's actually a question that's come up a good bit in our Facebook group. Obviously, people want to make sure that the furious member of their families taken care of. That's kind of the reason that people think about getting pet insurance. They want to make sure that their little pets okay if something were to happen. And I'll give a caveat here, if you have, in particular an older pet or a breed that's particularly prone to health issues, it could work out in your favor to have a

pet insurance policy. But for the most part, the numbers just don't make sense when it comes to buying pet insurance for your dog or your cat or your hamster. I don't think basically, you're better off having a larger amount set aside in savings than paying those monthly premiums

on that policy, and hoping it pans out. Uh. And again, Matt, when you're working with somebody like a local vet, you can talk through payment plans if you do have to have a procedure for for your dog or cat, and you can also look locally for other resources in order to find discount care for your pets health care needs. But pet insurance, when you're on the numbers, it just doesn't typically work out for people in most cases to

have insurance on their pet. Yeah, I mean, you know, this is a good one to bring up because I feel that oftentimes people they spend so much money on their pets, like I'm pretty sure like all the dogs in our neighborhood and have been to the doctor more often than I have in the past. Deck, I don't think it might be worth asking ourselves, you know, is this truly necessary? Obviously there are times when it's necessary.

But I also think that oftentimes people need to to not feel guilty for not having that kind of insurance on their pets. Um and related to them. And let's talk about life insurance, but not for you know, grown ups, but for kids. Uh. This one really frustrates me. Life insurance should be specifically purchased for replacement of income, and that's why you should not have policies on your children.

Yet there are lots of companies and insurance folks that love selling these policies and their expensive whole life policies at that they are a major money maker for companies that sell them. Uh And similar to pet insurance, it can be an emotional decision. There's a lot of potential guilt involved, you know, like, if I don't get life insurance for my kids, do I love them? Well, of

course you do. But maybe instead of getting life insurance, you can open a five twenty nine account, or you can just start saving for their future in other meaningful ways instead. What makes me think about the the the Gerber life insurance policies that show up in the mail. Basically, once you have a kid, you'll start getting these mailers and they're basically trying to convince you to buy life

insurance for your kids. You don't need it, yeah, And one of the reasons I think that that a lot of parents do you get that is one out of guilt and then too because they're like, well, if something terrible would happen, right, Funeral costs are expensive, but they're not all that expensive, and again you're better off being self insured against the unlikely event as opposed to having insurance for the incredibly improbable thing. And Matt another similar

thing is unemployment insurance. Right. This insurance covers your essentials if you were to lose your job, and it sounds smart, right, and in particular in the pandemic these days, it sounds really smart. It's like, oh, man, I wish I had had that, but you'd be better off skipping that insurance and self insuring again by having a couple of months

of expenses on hand. And by the way, we keep mentioning this as the antidote to the worst insurance policies out there, that it's substantial savings and being self insured,

but there's no way of getting around that. That's going to be kind of a theme throughout this episode that in order to avoid some of the worst types of insurance that cost a lot and that you're really in all likelihood not going to need their more specific types of insurance, well, then you do have to do a good job of being a diligent saver and having money in the bank so that any of these things were to happen, you do have the savings on hand to

pay for the procedure or cover your monthly bills if you were to to lose your job. And at the same time, map there's unemployment insurance through the state. All fifty states offer this, and obviously that's been a benefit to a lot of people recently. So they need to specifically have unemployment insurance. It's just not there for most people. It feels a little bit redundant. And you know, you

mentioned having that emergency fund set up. I feel like that's this is a case for having maybe a larger emergency fund as well. You know, if if you are looking at some of these different types of insurance and you're thinking, oh, that one would really come in handy because you know, I have a pet, or oh my job is a little unstable, you know, so maybe unemployment

insurance might be handy for me as well. These are all reasons maybe to like increase your emergency fund instead of you know, at the bare minimum of two thousand, four hundred and sixty seven dollars, bump it up to three months, and then maybe for each additional thing like oh I have a pet, well, then maybe bump that emergency fund up to four months. Then say, maybe you've purchased a bunch of fancy electronics, maybe it's worth bumping

up from four most to five months. Essentially, the more sort of like liability that you have, it's worth having additional cash on hand. And then the added bonus is that you're going to be earning interest on that money as it sits there in your own account. Granted, you're not gonna be earning that much these days, but I'd rather take any interest than none at all, Joel. And then lastly, let's let's talk to about kind of like some of these hyper specific types of insurance, like like

cancer insurance. There are all sorts of different insurance products in a modern age, and they can get really specific. You know, you can purchase I D. Theft insurance, or flight insurance, even insurance on your your home's waterline. I don't know if you've gotten mailers for those in the mails as well? Oh yes I have, but I avoid those like the plague that as well as those those

Gerber baby life policies. Right, and if if you did sign up for all of these, uh in order to be you know, quote unquote fully covered your budgeted amount for just monthly insurance alone just for those premiums that could get pretty ridiculous. So you likely don't need these additional specific types of insurance. But now that we've covered some of the insurance products that you should not be considering, let's talk about, you know, the different insurance products that

are really important for most to consider it. We'll get to those right after the break. All right, Matt, we're back from the break. We're talking about insurance and how most people out there are probably under insured, and we just kind of talked about hyper specific insurance policies, things that cater to getting a specific type of disease or illness, maybe even like baldness insurance. Oh, Man, I don't know if they have that, but I would would you would

you buy that? No? Because even if I did, Man, I'm self insured on that. I'll wear a ball cap. There you go, the cheapest type of insurance when it comes to baldness. Exactly exactly. But yeah, the opposite of those hyper specific policies is looking for something a little broader that you have a higher likelihood of needing. And so yeah, when we're talking about uh insurance that you do need. In this segment, we're going to kind of

focus on those kinds of insurance. For instance, everyone will die at some point, so life insurance is a natural must have, but just not for your three year old, right, unless they're like a Hollywood child star and they're the main, main breadwinner for your family. In that case, that's an exception to the rule. Right. If you get your own Macauley Culkin, you might want to get a policy out

on him. Exactly. Yeah, I mean, obviously, the biggest potential money risk to almost everybody's family is one of the main breadwinners dying prematurely. So a term life insurance policy is something that everyone with dependence should have, right. A good rule of thumb is to have a policy worth ten times your annual income. And so, Matt. For folks out there who have listened to the show before heard us talk about life insurance, they know that it's important.

Maybe they bought a policy years ago, but their financial situation has changed, we would say revisit it, make sure you have enough coverage for your situation. And by the way, if anyone out there doesn't have any dependence, life insurance is something you don't really need, right. It really is only necessary if you have people who would need that

income in the event of your passing away early. Yeah, Juel, you know, it's also necessary to have life insurance not just when you have dependence, right what the I r S considers dependence, but also when there is somebody else who is dependence on your income. Right. So obviously I'm talking about spouses here. If you have a spouse or a partner who counts on your income, that's an instance

when you definitely also want to have insurance. And you know, while we're talking about that, like, let's mention life insurance on a partner who takes care of the kids. You know, you don't always need to generate an income in order for it to make sense to have a term life insurance policy. You know, a stay at home spouse is

the best example of this. Their work, although it's you know, unpaid, is highly valuable, and child care and just the countless other ways that a partner, you know, brings value to the home that would cost a lot of money where something to happen to them. So not only does it make sense to have life insurance for a primary breadwinner, but also to for for someone else who provides a massive amount of support in the home. Yeah, it's a

good point. And Matt, by the way, some websites are now offering instant decision life insurance policies and those can be great. They forego the need of how having a medical professional come to your home and you know, take blood tests, check your blood pressure, those kind of things. Uh, And that's kind of nice, right to not have to

deal with that. But I've also read some things recently that the convenience can actually cost you more, to the tune of thirty three percent higher premiums every month on average. So it's important to shop around at multiple sites, including Policy Genius one of our favorites. But make sure that you don't scamp or skip out on life insurance because it's one of the most important insurances that you definitely need to have in your life. And then, Joe, let's

talk about disability insurance. This is uh an incredibly overlooked type of insurance. The stats show that a quarter of Americans will experience a disability that keeps them out of work for three months or longer, and most of those come from an illness, not a specific type of accidents.

You know, it's not just the guy that's like skydiving. Uh. And so this means that we are all vulnerable, and so for most people, a long term disability policy is going to make the most sense if you happen to have employer provided disability insurance, and make sure to see what it currently covers, because you might need to per

is a policy of your own to cover the gaps. Uh. And since many employers offer subsidized short term disability, a long term disability plan makes the most sense for individuals typically. But you know, be sure to read up on it and don't just assume that you don't need this type of coverage. Uh. And you know we've mentioned Policy Genius already this episode, but you can also go there as well to compare quotes, uh and get a policy as well. Yeah.

By the way, the reason we mentioned them it is just because they shop with a bunch of different companies. So instead of just going to one company, go to a website that's going to shop them all. And that's why we're fans of Policy Genius. But make it super easy. Yeah, And Matt, just on that note to when we're talking about disability insurance and life insurance, folks out there might have a policy through work that covers them maybe even on both of these fronts. Uh. The thing is it

just might not be enough. And at the same time, if you leave that employer, you lose that insurance policy. So you do want to make sure that you have your own private insurance as well. Or let's talk about Renters insurance. This is a must also. It's also one that people typically forego, which is a bummer because it's so cheap. It's one of those insurance is that is almost negligible. It costs less than Netflix every month, yet it can save you in a major way if an

accident occurs. Right, it typically just costs around ten twelve, fourteen dollars a month to have Renters insurance, and that inexpensive insurance covers your possessions in case something happens. Right, Renters insurance also covers your belongings when you're traveling. Also, take a look at your lease. Your landlord probably requires it, so there's just require it. Yeah, me too, me too, and so yeah, that's one of those things that UH,

tenants should take a look at. They should make sure that they have Renters insurance not only for their sake, but to comply with their lease. At the same time, and really there's just no reason not to have it. Do some shopping. If you have an insurance relationship already, ask your agent if they can quote you on that, or look around policy genius. Obviously you can go there too. There's no excuse when it's that affordable. That's right, man.

And so obviously you're gonna have renters insurance if you rent a place, if you have a home. If you have a house, you're gonna have home insurance. Let's talk about home in auto insurance. Both of those are obviously necessary. You know, we dove deep on these backend episode eighty one, so if you want to know how to shop well for those, check out that episode. But something that we did want to note here is don't have too little coverage, especially as home values have risen in the cost of

repairing or replacing your home have climbed. Take a look at the overall amount that you are insured for. You can ask an independent agent to to help you figure out what specific coverage you need, and there's online calculators as well that can help you figure that out. If you need more coverage and the cost is getting too steep, you can look to raise your deductible and self insure with more cash on hand. And honestly, this is a

great move regardless. You know, you want to make sure that you're properly insured, but the goal here is to not have to use it. So finding a way to keep those monthly insurance premiums down is really important, yeah, Matt. In particular, homeowners insurance is one of those things that people are gonna want to have and then hope to never use. And obviously, if something major happens, something catastrophic, you use it. But the same thing is true with

both home and car insurance. You don't want to use it if it's a minor thing. Even it's a roof that needs to be replaced because of hail damage or something like that. You really want to think long and hard about whether or not you pull the trigger and call your insurance company. In many cases, it's better off to hire the workout yourself, to have the money saved and avoid using your insurance. And that's because premiums can

skyrocket after you use that insurance. Seems true with your car insurance, So if there's a little ding, little dent, handle it yourself and avoid actually using it in order to keep your premiums low. Yeah, all the note of homeowners insurance, flood insurance is a type of policy that some folks definitely don't need, but there are some people who really need to have it. In particular, if you're at high risk for flooding, you should look into getting

a policy through FEMA at flood smart dot gov. And it's not all that expensive considering you know what you are ensuring against. Floods can create a lot of costly damage. Yeah, it's a good point, all right. Let's also mention a couple more types of insurance that people really need to have if you don't want to be underinsured, and one of them is health insurance. The number are one reason for personal bankruptcy is due to medical bills, So going

without health insurance just isn't smart. But obviously too it's gotten incredibly expensive. If you have employer provided health insurance, they're typically subsidizing a huge portion of that cost, and it's important to make sure that that you have a policy.

But if you don't have access to employer provided health insurance, it's important to shop on the exchange and see what sort of subsidies that you qualify for, and also if it's gotten prohibitively expensive, consider checking out a health sharing company, and Matt, you're a member of one. Most of them, though, are are affiliated with religious communities, and so I know

a lot of people that listen to the show. They've asked the question if there is a health sharing company that isn't necessarily religious based, And the only one that I could find in all my research was Liberty Health. They have the least stringent requirements if you don't have any sort of particular religious affiliation. So they're one worth checking out, and it's gonna be way, way less money

than an actual insurance policy. But at the same time, it's not technically health insurance, but it can really help in the case of finding yourself in a position where you had to have a medical proteger and it costs thousands or tens of thousands of dollars. Yeah, Joel, and similar to what we recommend to when it comes to auto insurance, we would recommend something similar to health insurance

as well. One of the ways to obviously get your costs down every month is by increasing your deductible with auto insurance, so look to a high deductible plan when it comes to health insurance. If you're young, you're healthy, Maybe you don't have any pre existing conditions. Maybe uh, you know, there's zero family history of of any health issues at all. Those are all great reasons to consider

moving to a high deductible plan. But then obviously you still want to make sure that you at least have enough money set aside to reach that deductible in case something does happen. Uh. And then, lastly, Joel, here, let's talk about an umbrella policy. One of these might be a good thing to consider if you've done a really good job accumulating assets. Uh. They're also pretty inexpensive because

it's only tapped if you exceed your other insurance company payouts. So, for example, let's say you were you know, at fault in a car accident and your auto insurance only covered let's say, up to fifty thou for the other vehicle. But if that other car that you you know wrecked was worth a hundred thousand, well, guess what they're coming after you personally for that extra fifty thou dollars. That's why I don't drive next to nice cars, Matt, Yeah,

avoid those lambos. Uh. That's when an umbrella policy comes in handy. It protects your assets in the event that you are liable, and like I mentioned, they're inexpensive, these policies can be really affordable to uh it's pretty easy to get a one million dollar policy for for something

like twenty bucks a month. So if you've done a good job accumulating assets, you know you've got you've got a home, and you've got a good amount of equity in that home, and you want to make sure they're not coming after that, well, an umbrella policy is something definitely worth considering. And for all those mom pop landlords out there, it's another important consideration is to have an umbrella policy because one your liability is higher and to

your assets are higher. Right, if you have multiple rental properties, an umbrella policy can make even more sense for you. So all right, Matt, Hopefully we were able to cover a lot of different insurance products on this show in a way that didn't put people to sleep, especially if they're driving. That's not good because then you're gonna have to use your insurance. But yeah, um, we covered some

insurance products that people should typically stay away from. Then the insurance products that people need to know a little bit more about and if you find yourself maybe lacking on one of the insurance types that we mentioned, we would just encourage you to to go do some shopping, do some reading, and make sure that you're properly insured and make sure that you have enough insurance to cover

yourself and your family. It's one of those things that in personal finance we don't like to think about a lot, but it is kind of this important spoke, this important component in having a good, healthy approach to your personal finances. You know what I was waiting for. It was for you to say warranty one more time, because at the earlier in the episode, you were saying warranty, but you were saying warranty. And I don't know if I ever

say it like that. Our pronunciation differs sometimes I don't want to mention it, Earli because I don't want to make you self conscious, But every time you s that, it kind of made me happy. And said, now, I don't even know which way I said it, but you said you said warrant. All right, You're always really excited to avoid that extended warranty. Okay, do it all right, but let's get get back to the beer. This episode, we enjoyed a P B and J American style sour ale.

And this was a beer by Shades Brewing Company, And I noticed on the top of the cane here it says that this is part of their Caveque series. Do you know how to say that? I'm pretty sure that it's like a it's a Norwegian word. Oh really, I don't know. No, I don't know that I should. I feel ashamed to call myself in Norwegian at this point.

I don't know much about that except that it's the type of yeast that's like really hearty or like really robust, So it allows them to do really like aggressive types of bruise without killing the yeast. But evidently it allows for a really clean drinking beer. And so I guess on that note, I'll go ahead and share my thoughts on this beer. I wasn't sure if I was gonna like this because it's P B and J. But it's a sour you know, you can expect to have a P B and J stout, But how in the world

do you make peanut butter and jelly sour beer? And somehow I feel like they were able to pull it off. Man Like, as soon as you drink get had some tartness going on, and it tasted really fruity. But then at the same time, almost instantaneously, you you pick up on some of those peanut notes. It's like sort of like this low base accompanying these these kind of high trouble notes. And I felt that they were able to

compliment each other pretty well. I've never had a beer that was a sour, but it was a type of beer that that was based on a flavor profile that was a little more robust and savory. But all in all, Man, I thought they did a good job and I really liked it. What about you, What were your thoughts? So I've never been so nervous opening a beer as it was with this one, because when I read what it was, I was a little freaked out. I was I was like, P B and J sour. I don't know, that's not

gonna work. Yeah, should we even drink it? I don't know. But I will say it was not my favorite beer. I'll go off and I'll be honest on that, but I agree with you. Actually, I think the flavors did work together, and it tasted like a peanut butter and jelly sandwich that had gone sour, but not sour like rancid. No, it didn't taste bad, that's for sure. Not like a peanut butter and jelly sandwich that was left in a lunchbox and it was left out on the ground for

two weeks. No, not like that, like the animals got into No, nothing like that. But yeah, I thought it was an interesting conglomeration of flavors. I'm glad we tried it, that's for sure, because I love trying unique beers, and this one was definitely unique. It's just not gonna make my top ten list, even though I enjoyed the drinking experience, even though it was made from a Norwegian yeast, I thought that would have won you over. I'll it scores

points in my book for that, that's for sure. Nice well, Andy thinks again for sending this one to the show. Angel that's gonna be it for this episode. Man. Listeners can find our show notes on our website at how some money dot com. We'll be sure to link to some of the other articles that we've written in regards to insurance, as well as where you can go to

find an insurance policy. Yep, and we appreciate everybody out there who listens, and if you've been listening for a while and you think that Matt and I have some room for improvement, but we'd love to hear from you, you can just go to how the Money dot com slash do better, drop us a line, and let us know how you think we can make this show a better place to learn about personal finance, because that's always our goal, to make this show an awesome place to

learn about personal finance and a helpful and constructive way. All Right, Matt, that's going to do it for this episode. Until next time, best Friends Out, Best Friends Out,