Many American’s have insurance problems that they do not even realize they have, and unfortunately, they typically find out when their insurance company denies a claim they thought they had coverage for. Nothing can be more frustrating and financially costly! Sometimes it feels impossible to have peace of mind when buying insurance. Some purchase their insurance (home, life, auto, etc.) just because they know they have to have it, such as those who are seeking loans are required by banks or lending institutions to have insurance. Some purchase the cheapest, most convenient (at the time) policies, and others lack the proper insight and guidance, thus persuaded to purchase policies through “cute” television commercials or radio ads which are often times sold by operators on 800 numbers or chat lines, who do not know a thing about YOU and your specific needs! In times as the ones we are living in today, where uncertainty is looming, pandemics occurring and little assurance is known in what could happen next, you want the things that you value most to be protected, valued and secured properly.
Those things that we value the most are the things that we want to stay as constant as possible when everything else around us is off kilter; our families, our health, our homes, going to work to be able to provide for the family and in addition, the ability to put away for the future. In fact, insurance plays an essential role in the protection of all the things mentioned above, as they tie into a person’s current and future financial health. To sum it up through the insurance lens, there are three critical areas one must protect: health, income, and property. For brevity sake, we will look at the latter two today, and they are as follows:
- Income – Income can be lost through accidents, illness or even death. Protection of income can be accomplished through the purchase of a well-constructed life insurance plan. Whole Life, Universal Life and Term Life are the types of policies on the market and the type used depends on several factors (we will touch upon the three types in a later post). The face amount, the term of years and how these mesh with your assets are the basics that must be considered when constructing any viable plan. Any type of life insurance should also incorporate current and future income, debt, mortgage and education protection of self or children.
- Property – Property entails protection of physical assets such as home or auto, but also should contain protection against a lawsuit if or when your assets cause harm to another body or property. A home is a major asset and needs to be protected with essentials such as an “open perils” policy, “replacement” claims settlement, water damage and seepage, foundation coverage and law and ordinance (if the house is older than 20 years) and lastly, liability coverage connected to the home should be at a minimum of $300,000 ($500,000 if the home has a pool or trampoline).
Protection of income, property and health (among other things we care about) can be accomplished with a peace of mind we so desire through the purchase of insurance that is strategically constructed for you and how it meshes with your valued possessions.
The halfway mark of 2020 has creeped up on us—what a sigh of relieve that is! Our lives this year have been ultra-consumed by constant change and uncertainty. It has indeed magnified the need for smart insurance planning with the guidance of an advisor that cares about giving you the peace of mind and assurance of the things you care about most: It certainly makes all difference!