Do You Have a Comprehensive Insurance Plan?Submitted by JMB Financial Managers on October 23rd, 2017
3 Insurance Gaps That Could Be Leaving You Vulnerable
Although most individuals have insurance coverage of some kind many don’t realize they are leaving themselves vulnerable to catastrophe by not having the correct type of insurance coverage or even by simply not having enough coverage.
It is essential to revisit your insurance plan regularly to make sure it includes all of the potential threats you may need protection from; this goes for businesses and individuals alike. Insurance planning is about expecting the unexpected. Don’t let life take you by surprise.
Do You Have Disability Insurance?
Many people are under the impression that disability insurance is only for those who have a physically demanding career, but that is untrue. Although, it is very important for someone that works in that type of field to have short-term disability coverage in case of an accident, it is not the only industry that requires this kind of coverage.
In my experience, I have found that careers in which your income is highly commissions based, disability insurance can also prove to be a very valuable investment. Are you an independent contractor? A commercial real estate broker? If you find yourself disabled and unable to work, your income becomes non-existent. Disability insurance could help you protect your income stream in the case of an emergency.
Do you know if your employer offers any kind of disability insurance? Many companies don’t, and if they do, it is generally only short-term coverage. If you find that your employer doesn’t offer coverage suitable to your needs, you may want to look into a long-term disability policy that can replace 50%-70% of your income for up to 2 years whereas short-term policies only cover 60% for a matter of weeks. Check to see what kind of coverage is available to you so you can be better prepared for the uncertainties of tomorrow.
Are You Covered from Natural Disasters?
In light of recent natural disasters including Hurricanes Harvey and Irma and now the wildfires ripping through the state of California, it’s becoming more apparent that insurance coverage from these types of catastrophes are more valuable now than ever before.
Depending on where you live, coverage such as earthquake and flood insurance may be a necessary part of your insurance plan. Do you have it? Most people settle with the coverage that they receive from homeowner’s insurance. But, in situations like these, the coverage from homeowner’s insurance will only cover a small sliver of the damages and leave you with the devastating cost of repairs.
Is GAP Insurance Part of You Insurance Plan?
Financing a car is a big expense, and what if something happens to it? Will you be able to pay for it? You won’t have to if you have Guaranteed Auto Protection (GAP Insurance). This is a great way to insurance vehicles for business, and cost effective too! Many monthly payments for GAP insurance are only $10-15.
So how does it work? If your vehicle is totaled or stolen, the insurance company providing your coverage will evaluate the current value of your vehicle, subtract out your deductible, and pay you that amount. This way, you’re not out more than the current market value of your vehicle, making it easier on you to find a replacement. This could be the key piece of your insurance plan that you didn’t even know you needed.
Evaluate Your Current Coverage and Take Action
With so many insurance options it is easy to get overwhelmed. If you need assistance sifting through your policy choices, a financial professional can help. Please feel free to reach out to me to discuss your coverage options.
A comprehensive insurance plan will fill all the gaps in your coverage and make sure you’re properly insured for the unexpected events life sometimes throws. It is important to regularly review your insurance coverage and make adjustments for any changes in your life that may have occurred since your last review. Get started today to be covered for tomorrow.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.
About the Author
Jack Brkich III, is the president and founder of JMB Financial Managers. A Certified Financial Planner, Jack is a trusted advisor and resource for business owners, individuals, and families. His advice about wealth creation and preservation techniques have appeared in publications including The Los Angeles Times, NASDAQ, Investopedia, and The Wall Street Journal. To learn more visit www.jmbfinmgrs.com.