Don’t get blinded by the unexpected: Prepare with a smart insurance strategy
Life has a way of throwing curveballs, even into the best-laid plans. Remember those childhood ambitions? Are your current career goals still a bullseye, or have you pivoted to new dreams? And what about that retirement plan – is it ticking away happily, or gathering dust in a forgotten corner?
Now, imagine losing the engine driving your whole financial game – your income. How would you weather that storm? Insurance is like a superhero cape, there to help you if you fall, rather than just a boring document.
Think of it this way: you wouldn't build a house without insurance against fire or floods, would you? So why leave your income, the very foundation of your financial well-being, exposed to life's unexpected twists and turns?
Prepare yourself and review your goals. Ensure that you have income protection insurance included in your "future-proof kit" to safeguard your financial security. Because while you can't predict the future, you can prepare for it – and that's the smartest investment you can make.
Workplace Insurance
While workplace insurance can seem like a safety net, it's often just a thin sheet. Many people mistakenly think it's enough, even adding post-tax benefits like a band-aid on a gaping wound. But the truth is, your individual needs are more complex than one-size-fits-all plans.
Sure, the "10 times your annual income" rule for term life insurance might work for some. But what if you're a high earner? What if your family has unique needs or your financial situation is anything but standard? That's where workplace insurance falls short.
Here's the reality: some crucial types of insurance simply aren't offered through employers. Many corporate plans do not include long-term disability, critical illness, or specialized coverage for complex financial situations.
Disability Insurance
In 2020, more than 50% of US workers did not have disability insurance. This was especially true for 70% of Baby Boomers. The information comes from Unum, a national provider. Yet, this vital safeguard could be the difference between weathering an unforeseen storm and financial devastation.
Imagine a high-flying athlete, sidelined by a career-ending injury, forced to find a new path. Or a skilled professional felled by illness, their income replaced by a meager fraction of their previous salary. Disability insurance is a financial lifeline in such situations.
But here's the catch: most policies only offer 60% income replacement. So, carefully consider your current income and future needs when choosing your coverage level. Don't let a false sense of security leave you vulnerable.
Remember, disability isn't a distant possibility, it's a potential reality. Control your future, close the protection gap, and ensure peace of mind by safeguarding your income from unforeseen events. Disability insurance isn't just a financial safeguard, it's an investment in your long-term well-being.
Long-Term Care Insurance
Most companies do not include long-term care insurance as a standard employee benefit. However, there are a few companies that offer it as an optional add-on. Get cheaper insurance if you're young and healthy, with easier approval process.
However, if you're not covered through your employer, you'll be facing a wide range of choices on the open market. When considering long-term care and life insurance, there are numerous options available. These options range from traditional policies to hybrid policies.
Long-term care insurance is a significant decision. It can provide peace of mind by guaranteeing that you will receive care when you require it. Take your time, do your research, and find the right policy for you.
Umbrella Insurance
Think you're safe from lawsuits just because you're a responsible homeowner or pet owner? Think again. Even a peaceful life with innocent things like a dog, a pool, or young drivers can lead to a big lawsuit.
That's where umbrella insurance steps in. It's your financial superhero, swooping in when your standard insurance policies run out of steam. It gives more protection when other insurances like home or car insurance have been used up.
The key thing to remember? No two individuals are identical when it comes to risk. Even with apparently similar situations, exposure profiles and risk tolerance can vary greatly. Some jobs require more insurance for possible damages, while others have higher risks from volunteering or hiring domestic workers.
Here's the simple truth: a lawsuit can wipe out your savings, your assets, and your future in the blink of an eye. Umbrella insurance protects you from unexpected events, giving you peace of mind and financial security.
Don't wait until it's too late. Talk to your insurance agent about tailoring an umbrella insurance policy that fits your unique needs and risk profile. It could be the smartest investment you ever make.
Bottom Line
Each person's needs are unique, demanding tailored protection beyond conventional offerings. The absence of comprehensive coverage can leave you vulnerable to unforeseen events. It's time to shore up your defenses.
Explore options, assess risks, and craft a shield of security through the right mix of insurance coverage. Talk to your insurance agent and financial advisor.
Remember, it's not just a safeguard; it's an investment in your future well-being. Take charge today to fortify tomorrow – it's the wisest choice you'll ever make.
Sources:
https://www.fidelity.com/learning-center/wealth-management-insights/income-protection-insurance
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
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These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.