What Kind of Insurance Do I Need?
Andrew Staley Financial Advisor Rogue Investment Services **
When building a financial plan for yourself or your family, it is critical that insurance is a part of your planning. Many Financial Advisors believe that insurance planning ought to be the base of a financial plan. However, there are many different types of insurance. What kinds are most important and what factors should you be considering when it comes to insurance?
Most people are familiar with Home and Auto Insurance, and may think that they are covered. However, in the event that disaster strikes, they may find that their coverages are inadequate. Finding out that coverage is not as complete as expected after an unexpected event is an unpleasant occurrence and can be financially devastating. Taking the time to review coverage with a professional agent is a key part of not being surprised in the event of an unexpected need to file a claim. Certainly, coverage amounts and deductibles are important, but also consider whether your personal property coverage is sufficient to cover valuables or other possessions.
Perhaps you are a higher profile individual and might be at risk of a lawsuit if somebody had an accident on your property. Consider adding Umbrella Insurance in order to protect your financial assets in such an event. For people renting or leasing space, a Renter’s Insurance Policy might be appropriate. Renter’s Insurance is usually inexpensive and provides peace of mind when living on someone else’s property.
Life Insurance is another important type of insurance to consider. Will there be sufficient funds to cover loved ones and their dreams in the event of death? For people with children, untimely death may result in children being improperly cared for and subsequently, plans for college may change radically. Does the surviving parent have funds to be able to care for the children? If you are married, you may want to protect your spouse from a significant loss in income.
Life Insurance death benefits usually pay out as a tax-free payment. This can be a huge benefit. Payments can be made as a lump sum or in installments over time. Many people want to leave a legacy without tax consequences for their family. Life Insurance can be part of that plan.
Another important consideration is for people who are working. Will an injury that prevents a person from working create undue financial hardship? Disability Insurance may be the right solution and provide a source of income in this situation. Disability Insurance will pay a percentage of income when a person is unable to work. Personal disability policies offered through an Insurance Agent can be tailored in a variety of ways depending upon a person’s situation. Often people have disability plans that are offered through an employer. Supplemental plans can often be utilized to cover any gaps in coverage.
Long Term Care Insurance is often considered to be something that you don’t need to worry about until you are older. Thinking things through earlier in life may allow you to afford a plan that would be unaffordable later in life. Long Term Care plans can provide a wide range of benefits for people when they are in a position of needing extra care. Home Health Benefits are often included and plans can be designed to include protection against the rising cost of healthcare through the use of inflation adjustments. Working with an agent who is an expert in this field is helpful in order to design and tailor a plan to fit your particular needs and desires.
One key truth when it comes to insurance of any type is that you often get what you pay for. Paying attention to details and working with a professional can help avoid costly mistakes. Saving a few pennies up front may seem wise at the time, but that decision may not seem so wise if it ends up costing hundreds or thousands of dollars down the road. As with many decisions, balancing affordability against the potential benefits and risk of loss can be challenging. Finding an agent that you can trust to help you work through the decision points will help you design your insurance coverage in a way that you can understand. Even if you choose to leave an insurance gap, at least it will be a thought out decision where you make the choice knowing your risks. Maybe not everything in life can be covered, but with good knowledge you will be able to make those decisions confidently.
To learn more about insurance, please contact a member of our Rogue Investment Services team by calling 541.622.7325 or stopping by a branch today. Rogue is also proud to offer our members $2,000 free AD&D coverage and the option to add more along with life insurance options just for being a member of Rogue. To take advantage of this offer visit Trustage.com today.
**Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Advisory services are only offered by Investment Adviser Representatives. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. 1370 Center Drive, Medford, OR 97501 541-622-7325