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Are You Covered By These Four Key Insurance Policies?

| March 21, 2019
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When you think about it, there are hundreds of insurance policies that cover anything and everything for all walks of life. There are policies that will cover travel plans. Or liability for a small business. Even pets are included in some of them. With so many options, it's hard to know which policies you need and which ones you don’t.

Getting back to the basics, insurance is simply a contract that protects the insurer (you) or the insurer’s property from financial loss due to damage, liability, or injury. (1) Even more simply, insurance protects your finances and your assets for whatever the future may hold. It's not a question of whether or not you need insurance, it's more of a matter of whether you have the right kind of insurance.

Read on to learn more about four essential insurance policies you may want to consider.

Home Insurance

For those who own a home, make sure you have a home insurance policy (that is, if your homeowners association hasn’t forced one on you already) that will cover your home and any upgrades for any situation where it’s at risk of getting damaged (e.g., fires, burglaries, hurricanes, etc.). Your home is your dwelling and your investment. Home repairs and replacements add up and can be quite the burden on your bank account if you had to pay for it all out of pocket. Having a comprehensive insurance policy to protect your home will make it easier financially in the long run when the need arises. If your auto or life insurance company offers home insurance, get a quote from them as they may be able to give you a bulk policy discount.

Health Insurance

Your health is important, so do everything you can to take care of yourself. That means going to the doctor regularly for checkups, injuries, or illnesses when you need to. With the costs of doctor visits averaging between $160-$200, (2) depending on the state you live in, having the best health insurance you can afford will not only offset your healthcare costs but can literally save your life down the road. If your employer offers a health plan, take it. Not only is the monthly premium shared (or completely covered by your employer depending on where you work), but often workplaces can get more benefits covered for lower costs since they buy their plans in bulk. If your employer does not offer a plan, or you are self-employed, look into online marketplaces like eHealthinsurance.com to find a private plan with decent benefits that will fit your price point.

Life Insurance

While death is a tough topic of conversation, it is wise to start the discussion with your family about how to prepare should something happen to you. This is where a good life insurance policy comes in, as it will bestow the benefit amount to your heirs in the event of your death. This way your family is financially provided for without your income.

When choosing a life insurance policy to enroll in, pay close attention to what kind of policy it is (term vs. whole life vs. universal life), the monthly premiums, the term periods (a 10-year term vs. 30-year term), and the benefit amount (how much the policy is worth).

Long-Term Care Insurance

You never know what life will throw at you. An injury could inhibit your mobility for the rest of your life. Or an illness might leave you bedridden for months on end. For both of these cases and everything in between, professional care by medically licensed professionals would be needed, the costs for which are extravagant, ranging from $18,200 to $87,235 per year, (3) depending on what kind of living situation is required (in-home care vs. private nursing facility). Long-term care insurance opens up different care options to suit your needs and relieves your family of the physical and financial burden of caregiving. For this kind of plan, it pays to start as soon as possible. The earlier you start, the lower your monthly premiums will most likely be.

We’re Here To Help

As stated previously, there is an insurance policy for everything. Whatever you do, make sure you get your insurance policies squared away. Once you do, you and your family will have the confidence that your finances and assets are protected for whatever happens in the future. You can’t put a price on that.

If you’re feeling overwhelmed by these decisions, remember that you’re not alone. We at Harbor Wealth Management are here to walk with you. Send me an email at jeremys@myharborwm.com or schedule a phone callto start the conversation today.

About Jeremy Smith

With nearly two decades of experience in the financial services industry, Jeremy Smith serves as a dedicated and knowledgeable financial advisor and the founder of Harbor Wealth Management. He specializes in serving retirees, pre-retirees, small business owners, and widows, providing a comprehensive array of investment management and financial planning services. Jeremy aims to serve his clients as a financial guide who is here for their every need, helping families find lasting plans so they can focus on what matters most to them. To learn more about Jeremy, visitwww.myharborwm.com or connect with him onLinkedIn. You can reach Jeremy directly at jeremys@myharborwm.com or by calling his office at 985-605-7185.

Securities and advisory services offered through LPL Financial, a registered investment advisor.  Member FINRA/SIPC.

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice.

For information about specific insurance needs or situations, contact your insurance agent.

This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs.

Guarantees are based on the claims paying ability of the issuing company.

If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.

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(1) https://www.investopedia.com/terms/i/insurance.asp

(2) https://www.sciencedaily.com/releases/2015/05/150504163456.htm

(3) https://www.npr.org/2012/05/01/151472617/discovering-the-true-cost-of-at-home-caregiving

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