Right-Sizing Coverage

The goal isn't maximum coverage — it's appropriate coverage at minimum cost.

For life insurance, a common guideline is 10-12x your annual income. If you earn $80,000, aim for $800,000-$960,000 in coverage. Adjust based on your debts, dependents, and spouse's income.

For health insurance, consider a high-deductible plan paired with an HSA (Health Savings Account) if you're generally healthy. HSAs offer triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. After age 65, you can withdraw for any purpose (just paying income tax, like a Traditional IRA). It's the most tax-advantaged account in existence.