THE INSURANCE SERIES | PART 1
Today is the first video in a four-part series about insurance. I know that it’s not everyone’s favorite subject because a lot of us dread spending money on something we may never use, but insurance is a necessary part of having a comprehensive financial plan.
Insurance serves as a safety net. You can have the best possible financial plan, but if tragedy strikes, it can derail everything you have built.
If you are in a car accident, you will be thankful you have auto insurance. If you become sick or injured, you will likely use your health insurance to pay for hospital or doctor visits. And if you have a fire in your home, hopefully you have homeowners’ or renters’ insurance.
Now, while many of us have these basic insurance policies in place, a lot of us are guilty of NOT having reviewed our coverage lately. Every few years, call your insurance providers and ask them to explain your co-pays, deductibles, and the overall ins and outs of your policies. As your life changes, so will your insurance needs. Reviewing your policies every few years will help you to know if you are still adequately protected.
It’s a good idea to keep a written inventory of all of your insurance policies, and the relevant information, such as which company your policies are with, policy numbers, contract dates, and of course: cost. It’s not a bad idea to get quotes from multiple companies every few years as well, to make sure you are still paying a fair price.
Three additional types of insurance that may be important to your overall financial plan are the types of insurance I provide for my clients: disability insurance, long term care insurance, and life insurance, and we will go over these types of policies in the weeks to come, so stay tuned!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you discuss your specific situation with your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.
Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.
Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.