Insurance protects you and your family against the risks of an uncertain future. It is like a seatbelt. It won’t prevent the risk, but having the right insurance coverage in place will help you put your life back together faster without putting a huge dent in or completely wiping out your savings.
In addition to providing protection, insurance can also be used to create wealth and transfer wealth.
Common insurance products:
- Life Insurance
- Liability Insurance
- Health Insurance
- Property Insurance
- Motor Insurance
- Critical Illness
Additional protection offered by Insurance
- Mortgage Protection – A family could lose their home if a life insurance death benefit is not available to help pay the mortgage
- Transfer Wealth to Family – You can leave more money to your family with a life insurance policy as part of your estate
- College Education – College is expensive, insurance proceeds can help ensure that college loans are paid even if you are not there to help
- Estate Planning – Pay taxes and create liquidity (converting assets into cash easily) – When an estate is inherited, there are certain taxes that must be paid. Life insurance may be able to cover those costs.
- Creditor Life – Proceeds from this policy can be used to clear any outstanding loan balance in the event a borrower dies before settling a loan
Advice about insurance
- Buy insurance as soon as possible. The younger you are the cheaper it will be and, where investment policies are concerned, you will accumulate more over time
- Know the terms and conditions of your policy
- Consult with more than one financial advisor about insurance options and select the one best suited for you and your family
- Stay informed about the status of your policy and the options for upgrading, cancelling, renewing the policy or stopping payment on a policy because it has matured.
- Always ensure that your premiums are paid on time. Most policies will be discontinued if three payments are missed
- Take time to read the contract to ensure you are aware of the benefits
- Review the beneficiaries on your policy periodically and change if necessary
- Over time, increase your insurance portfolio and coverage to match your needs and your family’s needs
- Ensure that every member of the family has some amount of insurance coverage