A Reader Has Insurance Questions

Hi Billy and Akaisha,

I have questions about insurance.

1. Car Insurance – If you have a 2 year old paid off car worth about 20k, would you purchase a high deductible full coverage or just liability insurance for it.

2. Umbrella Insurance – My wife purchased an Umbrella Insurance policy because of our net worth just to protect us if our normal insurance does not cover it (she did that because at the time we owned a business but we never cancelled it). She is in favor of keeping it, I think this maybe overkill but wanted independent advice.

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3. Life Insurance – We both have life insurance but not sure we need it since we are financially independent. Thoughts?

We are retiring early in July, so I am analyzing every single expense to ensure we cut all unnecessary expenses. By the way, thanks to you guys for being such an inspiration to all of us. I put a link on our new website to your site under the Who Inspires Us section.


Hi Steve,

Happy to answer your questions. Bear in mind that each person needs to make these decisions for themselves. Our opinions are just that – our opinions and if you don’t feel comfortable with following our choices, most certainly choose what works best for you.

Car insurance: Insurance prices are regional. It’s one price if you insure your car in Los Angeles and another price if you do so in Kansas or Iowa. Before we became Car Free  we insured our vehicle for liability only.

Umbrella insurance: This is a difficult question to answer for someone else. It all depends on your lifestyle and your net worth. We say do whatever your risk tolerance and comfort allows you to do. We don’t spend a lot of time in the States where being sued is more of an issue. Other locations in the world do not emphasize being reimbursed for a decision that might have unintended consequences.

Life insurance: Normally, in a case of being financially independent, we would say life insurance isn’t as necessary. In case of a death, the surviving spouse would receive the assets. In case both of you would unexpectedly die at the same time, your children would receive your assets. However, in reading your blog, we see that you have two young college age boys who could still be living at home. In this case you might carry life insurance until they are able to live more independently.

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Congratulations on your early retirement! Thank you for your kind words, and we feel honored that you have mentioned us as people who have inspired you. We wish you all the very best!

Please do keep in touch.


About Retire Early Lifestyle

Billy and Akaisha Kaderli retired three decades ago at the age of 38 and began traveling the world. As recognized retirement experts and internationally published authors on topics of finance and world travel, they have been interviewed about retirement issues by The Wall Street Journal, Kiplinger's Personal Finance Magazine, The Motley Fool Rule Your Retirement newsletter, nationally syndicated radio talk shows and countless newspapers and TV shows nationally and worldwide. They wrote the popular books The Adventurer's Guide to Early Retirement (Your Simple Path to FIRE) and Your Retirement Dream IS Possible.
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