Insurance is one of my favorite topics. Yes, it really is. And here is why. We work hard to provide for the ones we love and to enjoy the things that matter most to us. What if I told you there was something that is typically inexpensive that could protect everything you work so hard for? That is exactly what the right kind of insurance does. It allows us to protect the ones we love, to protect our greatest assets (ourselves included!) and to protect against risk—typically, a loss that would create a financial hardship. Knowing what your insurance covers will give you peace of mind today and help lift the burden if any disturbances arise in the future. And with vacation season in full swing, we’d much rather enjoy our summer plans than wonder what we’ll do if something goes awry!
Just like your rainy day plans for vacations, you should have a plan for the role insurance will play in your financial life. Today is National Insurance Awareness Day, a great reminder to do a wellness check on your insurance policies and look at your options.
Not sure where to start? A great place to begin is to count off each “finger” of the “High Five” of Insurance:
- Health. Health insurance is changing constantly along with its cost. This is why, at least once per year, you need to review your plan options to ensure you have the right coverage for you, your family and your evolving life.
- Disability. What would happen if you could no longer work due to illness or injury? Disability insurance is an inexpensive way to make sure your income continues, even if work cannot.
- Life. I get it. Not a fun topic to discuss, but it is important to be prepared. Life insurance is about ensuring your family continues to feel the same protection that you have always provided.
- Property & Casualty. This refers to coverage for your car, home, personal belongings, etc. In many cases, these are your largest purchases, and it is important to protect yourself against a major loss that could have a very large financial impact.
- Travel. Not always necessary coverage to have, but, since it’s the summer, it should be discussed. For families planning that vacation of a lifetime, it may make sense to look into your options to protect against unforeseen circumstances.
Here are five tips to keep in mind when learning about your insurance options:
- Knowing is half the battle. Knowing the right type of policy and amount of coverage needed for your unique situation will help you get started in finding the right solution. The bonus here is that knowing what you need will help you save money on the policy and avoid paying for unnecessary coverage.
- Go shopping. These days, insurance is mostly a commodity. That means there are many providers in the marketplace. Shop and compare coverage with various providers to find the right coverage at the best price.
- Don’t forget your discounts. Discounts are more prevalent in the property and casualty space as providers will generally offer lower premiums for “bundling”, putting all of your policies with one company. However, in recent years, health, disability, and life insurance providers have been looking at ways to offer discounts for living a healthier lifestyle. You may find everything from FitBit tracking programs (hello Big Brother!) to non-smoking discounts
- Schedule your “insurance physical”. Just like with your health, you should review your insurance coverage every year. Your financial life changes over time, and so should your coverage! Now is the best time to review so you are prepared for your open enrollment season with your employer. Proper coordination will ensure the right level of coverage and avoid excess cost.
- Talk to a trusted professional.It can be hard to find out what you need, how much of it, and how much you should pay for it. Don’t worry, we have your back at Facet Wealth! A CFP® Professional, who will act as a fiduciary, can help you look at the entire landscape and create a holistic plan that covers the “High Five” of Insurance.