Insurance Awareness Day, recognized on June 28th, is a great time to review your insurance coverage and assess your risk. Insurance is a means of protecting your assets against premature liquidation and protecting yourself and your loved ones.
It may be possible to strengthen your current insurance coverage or purchase new coverage. The insurance review and planning process is unique to each individual but has three parts for determining how much insurance coverage you need.
To help mitigate your risk of loss, financial professionals assess your life insurance, disability income insurance, and long-term care insurance policies to help ensure you’re appropriately covered for your situation. They may recommend the following insurance based on your unique needs:
Life insurance may help protect your family from financial hardship if you pass away unexpectedly. It may provide for lost income, pay bills and debts, and funeral expenses, and help pay your loved ones’ living expenses for a period. Here are some ways financial professionals evaluate your need for life insurance:
You might need life insurance if you answered “yes” to any of the above scenarios. However, if you already have life insurance, it’s essential to make sure you have enough death benefits.
In addition, if you have life insurance coverage through work, ensure your policy is portable if you leave your employer. Some life insurance death benefits offered through employer-sponsored life insurance expire at a specific age. So, having the appropriate coverage for your situation regardless of employer-sponsored life insurance is essential.
As you age, the likelihood of an injury resulting in permanent disability increases. However often, people think that Social Security Disability Insurance (SSDI) would replace their income if they become disabled. However, SSDI will only pay part of your lost wages if you become permanently disabled, which may not be enough to cover your monthly expenses. Purchasing a disability insurance policy can help protect against lost wages.
In addition, SSDI is a social insurance program under which workers earn benefits coverage by working and paying Social Security taxes. The program provides benefits to disabled workers and their dependents.
LTCI pays for the cost of long-term care needs that Medicare does not cover. In addition, it can help with expenses like nursing home care, assisted living, adult daycare, in-home care, home modifications, and care coordination.
As you age, (LTCI) is a vital part of financial planning. In addition, an LTCI policy can give you the increased confidence of knowing that if you face an illness or disability as you age, you can afford the care you need. Also, your children and other family members won’t have to deal with the significant expenses that may come with your long-term care.
In addition, there are other insurances to review now and assess your risk, depending on your situation:
It’s essential to make sure you have enough coverage, so reach out to your financial professional to schedule your insurance review today.
Disclosure: Guarantees are backed by the financial strength and claims-paying ability of the issuing company.
At Money Bridge Wealth & Income Planning we work with clients of all ages to plan for a successful financial future. We help clients gain financial peace of mind regardless of stock market and economic volatility. Whether you’re entering retirement or just planning for it, we can help you on every step down your financial path. Contact us today to get started.