S.T.E.P.S. – Smart, Tailored, Event-Driven, Packaged Solutions
Insurance — Part X
Insurance is protection. It is a way to shift the risk of an unaffordable event or an ongoing loss from you to an insurance carrier when and where it counts — your family, health, home, and more. Now that you have a family of your own, this kind of protection may be more important than ever.
Most people need six types of insurance: life, health, disability, auto, liability, and homeowner’s. But just because many people need all six basic insurance plans in some combination doesn’t mean they’re all right for you and your family. Here’s a simple way to start thinking about how much coverage you really need.
Think about potential losses that you could face and then how you would cover the related costs if you didn’t have insurance. Ask yourself: In case of death, who will support me? My children? My parents?
- If I fall ill, do I have enough money to pay for doctors’ bills?
- If I am hurt or incapacitated by a disabling illness or injury, can I support myself? My family?
- If I am in a car wreck, can I pay to repair my car?
- In that same car wreck, if I injure or cause damage to another, are my assets protected
- If there is a fire or natural disaster, (e.g., hurricane or earthquake), can I cover the cost of repair or replacement to my home?
If the answer to any of these questions is no, then insurance coverage may be appropriate for you.
If you don’t think you and your spouse have the funds to purchase all of the plans you need, try to prioritize. Assess which losses will hurt the most and make them top on your list. Be sure to pay special attention to “catastrophic” losses such as the total loss of your home, income stream, or whatever cost or possession would be most difficult to replace.
Try first to pick the benefits plan offered by either you or your spouse’s employer that best suits your new needs as a couple. In most cases, health and life are the two most important, but some employers offer accident, disability, workers compensation, and even long term care.
If you are, on the other hand, purchasing insurance plans outside of your employer — remember: cheap is not better. . . cheap is cheap and better is better. Sometimes they coincide, and more often than not, the most important factor is whether the product or contract is the most appropriate for you.
For more on insurance, please visit our insurance center.
Conclusion
Getting married means looking at many things in a whole new light. One of first challenges you will face as a newly married couple lies in how to effectively manage your finances as a team. Taking time out now to plan and prepare will not only give you security today, but will help you start to make your future a bright and prosperous one.