We all have risks in our lives. Risks to our incomes, property, health, and…even our very lives. When any of these risks become realities in our lives, the potential for financial trauma is very real. If we can sustain the hardship with resources we already have – without sacrificing other financial or lifestyle objectives – no problem. But if we cannot, then transferring that risk to an insurance company might be appropriate.
- Homeowner and Auto insurance: Also known as property & casualty coverage, these policies protect our homes, autos, and personal property from damage or loss sustained by weather, fire, theft, accidents, etc. This is important coverage to get right, but there is more going on here than meets the eye. These policies protect not only YOUR property, but your pocketbook as well by providing liability coverage when you damage someone else’s property or cause injury to somebody else. This is valuable coverage that is important but is often overlooked in the home and auto insurance decision.
- Disability Income Insurance: Is someone depending on your income? If you are unable to work due to serious illness or accidental injury, a disability income policy will replace a portion of your income for a specified period of time. Take care to not confuse this coverage with workman’s compensation insurance, which would apply only in work-related injury/illness cases.
- Life Insurance: You can’t work if you’re dead. Life insurance provides money to the dependents of a deceased insured person to replace their future earnings. Life and disability insurance are both directly related to avoiding the risk of your income going away either temporarily or permanently.
- Health Insurance: Health insurance has become a major expense today, often rivaling or surpassing mortgage payments. Although the cost can be staggering, going without health insurance can be devastating. Medical costs are one of the leading reasons for bankruptcies today. With the industry changing so quickly, it is important to investigate all your options annually. When selecting someone to help you, look for two things: independence – an agent who can shop all the options available in the marketplace; and specialization – an agent who writes only health insurance.
- Medicare Supplemental Insurance: Once you turn age 65, Medicare typically becomes your primary Health Insurance. But basic Medicare does not cover everything so most people need to purchase a supplemental policy that enhances the coverage. This marketplace is just plain confusing, even for those that understand it well. This is an important area in which to get expert help selecting the Medicare Supplemental Policy that is right for your own unique situation.
- Long Term Care Insurance: Once written as ‘nursing home insurance’, modern long term care (LTC) insurance plans actually serve to keep people out of nursing homes whenever possible by paying for custodial care services in people’s own homes or assisted living facilities. According to the U.S. Department of Health and Human Services, it is estimated that 70% of people alive today will need some sort of assistance as they age. A whole new industry of senior care has emerged in the last 20 years as we live longer and want to maintain our independence. Traditional LTC insurance policies are expensive and underwriting standards are often strict. Promising new solutions are emerging in this marketplace, offering alternative approaches to financing these expenses. Talk to your advisor at Compass Financial Services to learn what is available now.