We all buy insurance for various purposes. One thing we usually have in common with others who buy insurance policies is we want to make sure we’re covered for incidents that could happen and, if they did, particularly if we can’t— or don’t want to— use our own funds to pay for the loss.
The first step in insurance planning is to fully understand the type of coverage we currently have, and whether that coverage is adequate for our needs. There are specific questions regarding each type of insurance that need to be answered. Below are typical types of insurance many people have that should be reviewed and considered:
- Homeowners and Auto Insurance
- Health Insurance
- Disability Insurance
- Life Insurance
- Long Term Care Insurance
Each type of insurance serves its own purpose, and the questions from policy to policy are quite different. Some people have not considered a few of the categories listed above. We believe it’s important to review the type of protection each category provides and make an informed decision about whether or not to carry coverage and, if so, how much.
Many times an insurance review will be combined with a review of the benefits your employer provides. If you’re retired, the review might include government-provided benefits such as Social Security and Medicare.
Some of the strategies and tactics that can be considered for insurance planning are:
- Review of employer-provided benefits for shortfalls.
- Basic review of the five types of insurance and where they fit in your plans.
- An understanding of different types of life insurance and which are important for you.
- An evaluation of your earning power and helping you decide whether disability and life insurance make sense and, if so, how much to carry.
- Life insurance review for possible mis-spent life insurance dollars.
- A review of your homeowner’s policy for additional needed coverage.
- Understanding how you would make ends meet if a major medical issue prevented you from working.
- Planning either for being self-insured to cover losses or being covered by an insurance company for the losses.
We know that insurance decisions are different for each individual. Our goal is to help you make your life better. Insurance— in and of itself— won’t make your life better. If an unexpected loss occurs, having proper insurance in place in the right amounts will make your life better if an event is insured. We believe it’s important that you make an informed decision about the amounts and types of insurance you carry.