Step 4: Insurable Risk
Protect your plan and your wealth
Are you protected in the event of a catastrophic loss? Do you have adequate coverage to protect yourself from the things that may happen which deter your plan from having its best shot at success?
Life insurance is coverage for the worst-case scenario – the complete loss of life and an inability to produce an income. To help determine your coverage needs, things to consider are age, marital status, dependents, liabilities, and assets.
Long-term disability provides income in the event you are injured and unable to work due to a disability. Where will you and your family get income in this situation? Most disability policies don’t cover 100 percent replacement of your income.
It’s important for everyone to have health insurance. A single injury or health scare can cause a significant hit to your assets if you don’t have health insurance.
Home and auto insurance should be reviewed on a regular basis to ensure adequate coverage. Some items to consider:
- In the event of an accident, how much coverage do you have above the liability coverage?
- Is your home coverage enough to replace the home and is your coverage up to date?
- Are the things around your home covered (example: detached garage or structure)?
Umbrella insurance provides extra liability coverage, it picks up where other policies drop off. It covers any additional liability that may exceed coverage on other insurance policies.