Why It's Important to Choose the Right Insurance for Your Life’s Stages
Along the financial road of life arise the inevitable delays, detours, emergencies, and breakdowns. Some are small, which you can pay for out of cash flow, a cash emergency fund or even investments. But others are major and expensive setbacks. That’s when you need insurance.
The purpose of insurance is to shift these major financial risks to insurance companies. But risk management is more than a question of having enough (or too much) insurance. It’s also a question of whether you have the right kinds of insurance in light of your overall financial situation.
This information explains what types of insurance are most likely appropriate for the different stages of your life: from first launching out as a young adult to raising a family to retirement. The key is to buy the right mix and amount of insurance – and not buy coverage you don’t need – throughout your life.
People often view the purchase of insurance – particularly policies such as disability or long-term care – as a “waste” of money. Some see it as money spent on policies they hope or think they will never use.
Yet without adequate insurance, you run the risk of a financial disaster. The key is to buy only the right types and amounts of insurance at the right time. Don’t get sidetracked by insurance that may be a waste of money for most people, such as credit, flight, specific disease, car rental and pet insurance.
At the same time, don’t cancel any existing insurance until you are sure you won’t need it. And finally, don’t buy on price alone. Buy from an insurance company that is financially sound so that it’s there if you need to file a claim.
Work with Trisperity Wealth Advisory Group to match the right insurance coverage for the right stages of your life.
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