What Types of Insurance Can Help You in Financial Planning?

What Types of Insurance Can Help You in Financial Planning?
26 Apr 2019
Insurance is a key component of financial planning, but what types of insurance can help you in building a financial plan for your future? Find out here.

About 73 percent of people who recently died had some form of debt. Who pays that debt?

Does your family have a dog? Dog bites account for more than one-third of home insurance claims. Do you have enough liability insurance to cover your dog’s bad day?

Insurance is a key component of financial planning, but what types of insurance can help you in building a financial plan for your future? Find out here.

Disability Insurance

If you were unable to work for a long period, a long-term disability policy would replace a portion of your lost income. Check with your employer to see if they offer disability insurance because some companies will pay a portion of the premium.

You should buy as much coverage as possible, but you probably want to make sure you have at least coverage equal to about two-thirds of your income. Check that your policy is not capped at a certain period because some group policies stop after six months.

Life Insurance

About 37 percent of Americans do not have a life insurance policy. Life insurance provides your surviving spouse, children, and other dependents the funds to keep living.

You can choose between two different types of policies: a permanent policy that accumulates value or term insurance that covers you for a defined period. Term insurance is cheaper. However, whole life policies build value and don’t expire after a certain time.

Long-Term Care Insurance

Don’t depend on Medicare to pay for long-term care; it pays very little the cost with strict limitations. Long-term care insurance can help cover these costs.

There are some limitations and exclusions on these policies, so you will need to discuss with your financial advisor. You will want to think about your family health history and determine your assets.

Homeowners Insurance

If a catastrophe struck your home or someone was injured on your property, homeowners insurance would help cover the cost to rebuild your home and cover lawsuits. This policy also covers your personal belongings and would help cover temporary housing if you couldn’t live in your home.

Auto Insurance

Auto insurance covers your car repairs and medical bills from a car accident. It also covers any liability as the result of an accident. This policy is required, but you probably want to get more than the state minimums.

There are better ways to cut costs like raising your deductible or shopping for the best rates. Most state minimums may not be enough if you were involved in a serious accident. Your agent can advise you about the best options for your situation.

Umbrella Policy

An umbrella policy kicks in after your homeowners or car insurance limits are met. This policy is often overlooked and is relatively inexpensive. To get an additional $1 million worth of coverage may only cost a few hundred dollars annually.

This policy is vital for high-income individuals and those with considerable assets to help protect you from a lawsuit. If you have young drivers or a pool, you should discuss this policy with your agent.

Insurance Can Help You 

As you can see, insurance can help you when the unexpected happens. Having the right coverage will protect your family and assets. 

You should work with a financial advisor to help plan for your retirement and grow your wealth. Planning for the future should not be complicated. Contact Solera Asset Managers today—we would love to help you invest in your future.

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