Today’s the big day. Today we talk—insurance.
“How’d I get so lucky?” you’re likely thinking.
Before you close up shop, take a look at these facts and figures to better understand why having the right types and amounts of insurance is vital for your financial protection plan. It could even be lifesaving.
- Women (22%) are twice as likely as men (11%) to lack life insurance.
- It’s estimated that more than 100 million Americans are either underinsured or completely uninsured.
- In the event of losing a primary wage earner, nearly half (44%) of American households would encounter significant financial difficulties within six months. More than a quarter (28%) would reach this point in only one month.
- More than half of consumers think the cost of insurance coverage is three times more than it actually is.
Did You Know? Licensed in life, health and variable insurance, Lindsey Rhea can recommend and sell insurance policies that best protect your home and business.
BECAUSE INSURANCE IS LIKE A FINANCIAL SAFETY NET.
It’s freedom from worrying about a damaging financial loss if something bad happens.
Read “When my friend died at 27, it made me see life insurance an essential—not a luxury” about a woman whose friend, a husband and father of three, passed away unexpectedly at age 27. She never thought a story like this could affect her, but it’s proof that when it’s needed, insurance is far more than a policy on paper.
Insurance helps manage and minimize financial risk to you and your family if a potentially devastating event like a fire, accident, long-term illness or death occurs. It’s a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company.
Ultimately, without insurance, a potentially devastating event, such as losing a home or car or your income, could land you in a tight financial spot.
THE BASICS: THE 4 TYPES OF INSURANCE YOU REALLY SHOULD HAVE AND WHY
Most experts recommend minimally having life, health, auto and long-term disability insurance policies. Why?
- Life insurance—helps provide financially for your survivors and is especially important if your family is dependent on your salary.
- Health insurance—lowers your out-of-pocket costs for healthcare and protects you from huge medical bills that could destroy your financial future if you have a serious accident or illness.
- Long-term disability—protects you from an unexpected loss of income.
- Auto insurance—prevents you from bearing the financial burden of an expensive accident.
You likely already carry these four types of insurance and are more than properly covered. But here’s the hitch. You could still have gaps in coverage that could undermine even the most careful planning.
- Long-term care insurance. Arriving on the insurance scene in the 1980s, long-term care provides assistance if you become unable to perform daily activities independently, like bathing, dressing or using the bathroom. Adults who are 65 years old today have nearly a 70% chance of needing some type of long-term care in their remaining years, so it’s wise to explore options now.
- Life insurance beyond group, or workplace, coverage. A group life insurance benefit typically offers about two times your annual salary, but you may need more like six to eight times your salary just to break even.
- Personal property coverage, or contents coverage on a home policy, help cover the cost of personal items if they are destroyed, damaged or stolen due to a covered loss or peril.
- Personal catastrophe liability coverage provides protection when a person is seriously injured on the insured’s property and is awarded a large amount in damages. Whether you’re at fault for an accident or not, you could still get hit with a lawsuit—and lawyers’ fees and hospital bills could quickly exhaust standard auto and homeowners policies.
- Flood insurance. Avoid getting soaked with expenses; just one inch of water can cause major damage to your home.
At Alia, we’ll conduct a policy review and analysis of health and homeowners insurance, life insurance, long-term care, and more to ensure you’re adequately covered if unforeseen accidents, events and other life changes occur.
Our insurance-planning services include:
- Existing policies review
- Life insurance needs analysis
- Long term care insurance analysis
- Disability insurance review
- Medicare guidance
- Homeowners, renters and property and casualty insurance review
- Liability coverage
To learn more about how we can help, contact us today.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.