Protecting your income and assets is a very important part of your overall financial health and well-being. Whether you are protecting against unexpected health issues (through disability insurance, health insurance, or long-term care insurance); protecting your loved ones in the case of an unexpected death (through life insurance); or you just want to protect your assets (through home, car, and liability insurance); it is very important to speak with your agents to secure proper coverage.
Your family’s financial future will depend on proper coverage. So, cutting corners to save a few dollars in the short-term can cost your family thousands of dollars in the future.
There are several steps to protecting your financial well-being against changes in your personal health and well-being. First off, health insurance will allow you to take care of your health at a much lower cost than being uninsured. You will be able to go to your doctor for preventive care as well as specialists and hospitals for more intricate care. Health insurance will cover a great deal of the costs, depending on your coverage.
In a similar light, long-term care insurance will cover most of the costs of nursing home care for longer term illnesses such as Alzheimer’s Disease and other ailments. Although it might not cover 100% of the cost, it will offer a daily allowance based on your contract. So, it will not leave your family in financial ruins.
Protecting your income is also an important part of protecting your health. If you become ill or injured for a long period of time, or even permanently, you may lose your ability to earn income. Disability insurance will allow you to collect a percentage of your earnings. The tax status of the earnings will depend on who paid the premium. There is often a waiting period, and the length of the payments depends on your contract. However, disability insurance can fill a gap that would otherwise be left void with the loss of income. This could require a family to move, skip college, or worse.
Life insurance is an important tool to assist your family during a period of a loss. The main goal is to assist a family through the loss of an individual that provided income to the family, or took on substantial debt to buy a home or attend college. The life insurance proceeds can allow a family to pay off debt and invest the proceeds to replicate a portion of the deceased’s income. It is an extremely important tool for new families or anyone with a significant amount of debt.
Property & Assets
Protecting your assets is also an important part of your financial well-being. This is normally done through securing home, auto, and liability insurance (also known as an umbrella). Together, this would often cover you for an accident (medical expenses and asset replacement can be very costly if the accident is found to be your fault), theft, or a fire that was not deliberately set. The insurance coverage is used to shift the financial burden to the insurance company, thus reducing your out-of-pocket costs.
Protecting your health, your life, and your assets is an important part of your financial well-being. A loss of income or assets can be a costly mistake if you are not properly protected with the use of insurance. Insurance can be expensive, but depending on your coverage, it might be appropriate – don’t leave your family financially unstable by saving a few dollars in the short run.