Michael on June 27th, 2008
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Although I am often asked to speak to recent grads, I have never been asked to speak at any graduations. But if I were, I imagine I would deliver something along the lines of this speech.

Today is part 6. To see the entire speech released so far, click here and read from the bottom up.

Rule 5. Use Protection

Was it Mom, Dad, an older sibling, or perhaps Kenny at sleep-away camp? Who first taught you about the birds and the bees? Whoever it was, they probably told you about the importance of protection as part of that same conversation. At least I hope so. If you don’t know what I’m talking about, well, let’s just say I don’t believe you.

Protection is important in the real world, and not just the kind they sell at the truck stop restrooms. No, I’m talking about insurance.

Insurance can be made to be very confusing, but it boils down to one simple rule: never risk a lot for a little. For the newly graduated, that means getting health insurance (even if you get a plan that covers little more than a catastrophe). Get renter’s insurance too since, for a couple hundred dollars a year, you protect everything you own, including the CDs you don’t use anymore thanks to Mr. Jobs and his partially eaten fruit.

And, despite what some people would have you to believe, life insurance will likely be important one day in the future when you have a kid or two who depend on your income. However, when the most dramatic financial impact felt by your untimely demise would not be your spouse or child, but rather by the owner of the convenience store where you get your midnight fix, you don’t need life insurance.

[To be continued]

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