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Insurance, your Future is at Stake

27 December 2013 No Comment

canstockphoto8489309Never take a chance by skimping on insurance.  Yes, everyone wants to save money, but remember that the point of insurance is to transfer a financial risk that you cannot afford yourself to an insurance company.  Without having formal insurance, you are self-insuring – meaning that you intend to pay out of your own pocket should a financial disaster occur such as serious sickness or the loss of your home.

For example, some renters don’t own a renter’s insurance policy.  This covers the loss of any personal property (the landlord’s insurance policy does not cover this).  Even though renter’s insurance is easily affordable, think about how often you read about someone losing everything they had in an apartment fire because they didn’t have any insurance.

Make sure you buy the insurance coverage you need.  Review your insurance needs carefully with your Asheville insurance agent.  Medical, car, business and home insurance are the most obvious.  Don’t forget to consider disability insurance for when you might lose your income due to an injury or illness.  Most financial planners recommend long-term care insurance to cover the costs of potentially long-term care.  Don’t forget that you should have liability coverage more than just the standard home and car insurance coverage if you are sued.

Keep an eye out for any gaps.  People who have multiple properties in different states use multiple insurance companies and agents to handle their property and casualty policies.  This can end up being expensive, and the policyholder could end up with duplicate coverage – or worse, no coverage on some of their property because of a policy expiring or because it got overlooked.  Think about adding “floaters” and “riders” to offer additional coverage on things such as jewelry and antiques that are limited under a standard policy.

Additionally, don’t buy insurance that you don’t need.  You may need life insurance, but you might not.  Life insurance is usually for people whose death will significantly impact others financially – dependent parents, a spouse, kids or heirs who might be facing a large estate tax bill.  If you are young and single, you might not need it. As you age, you might want to have some coverage for a limited time.

Always be sure you buy the right amount of insurance.  While some people buy too much of one kind of insurance, more often they don’t have enough insurance.  An example of this is life insurance.  Often, people base their decision on the cost of the premium and not on the death benefit they need.  The best approach is calculating how much money you would need to replace a loss of income for your children and spouse.

Always make sure you check with your agent in Asheville to help you with all your insurance needs.

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