Insurance should be the first step of every saver. You should get insured before you think of doing anything else financially. However, to do this correctly you will have to understand what insurance really is and how much you actually need.

Here’s the dictionary definition of insurance: an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. For life  ..

How much should you be insured for? There are a variety of ways to arrive upon the answer, but a starting point could be ten years worth of your current income. This will obviously vary according to other family members’ income, assets, house etc, but rarely would an amount less than ten years’ income suffice. If you don’t believe me, quickly make a rough estimate of what your family’s budget would be if you were to die soon.

So here’s the most important question: Do you have enough ..