Right now is a great time to examine your insurance coverage to assess if you are adequately covered and evaluate your risk. Without adequate coverage, your assets may face premature liquidation if you need to pay out of pocket for damages and do not have the financial means. For this reason, financial professionals often assess insurance coverage as part of the financial planning process.
Why Do You Need Insurance Coverage?
The idea of paying for insurance can feel daunting, but its meaning is simple: insurance helps protect you from financial hardship. Insurance can help provide for lost income, cover bills and debts due to death or disability, cover property damage or loss, funeral expenses, long-term care, or help pay for living expenses. Here are some ways to evaluate your insurance coverage needs:
- You have a spouse
- You are financially responsible for your dependents
- You have debt
- You do not have enough money to cover your debts and expenses related to death—funeral, estate taxes, attorney fees, and other costs.
- It would be hard to replace your possessions if a loss occurs
- You live in an area prone to natural disasters such as fire, flood, or tornadoes
- Your family changed, grown, or members have moved away
- There are new drivers in your family
- There are changes ahead that will influence the amount of insurance you need
If you answered yes to any of the above, you must evaluate that you have the appropriate type and amount of insurance coverage for your situation. While insurance doesn’t cover everything, it can ease the financial burden if a disaster or loss occurs. Here are some of the policies to review to check you are not under or over-insured:
- Auto insurance
- Homeowners insurance, including all riders, such as flood insurance
- Renter’s policy
- Life insurance policies
- Disability insurance
- Long-term care insurance
- Health insurance and supplemental policies
Your Financial Professional Can Help
Your financial professional can review your insurance coverage and help you determine if you have enough coverage for your situation as part of financial planning. Contact us today!
