Do you have the oil in your car changed every 3,000 miles and your chimney cleaned once a year? What about those routine physicals and dental appointments? Are you on track with them? And how long has it been since you had an insurance checkup? Like your car’s oil, your home’s chimney, and even your own health, insurance can be easy to neglect — until something happens that serves as a reminder of the important protection it provides. If you can’t remember the last time you reviewed your insurance coverage, your needs may have changed more than you realize.
- Disability. If you are employed or have your own business, you should be insuring your most valuable asset — your earning potential. Disability insurance provides a source of cash flow when you can’t work for an extended time because of an injury or illness.
- Life. The more dependents you have, the more life insurance you generally need. It’s possible your current coverage isn’t enough to protect your family, especially if the recession and the turmoil in the housing and investment markets have taken their toll on the value of your assets. Once your children are grown, you may no longer want to carry as much coverage, unless you’ve identified other needs for it.
- Long-term care. An extended illness requiring home care, assisted living, or a nursing home stay could be a severe financial drain. A long-term care policy can protect your assets while allowing you to receive needed care.
- Homeowners. While any settlement is helpful if disaster strikes, you’ll be in a better position to recoup your losses if you upgrade your policy from actual cash value to replacement cost coverage. Expensive valuables should be covered by separate riders, and a business rider may be needed if you maintain an office in your home.
- Collision. The older your car, the greater the possibility that collision coverage is more expensive than repairs would be. Unless a lender requires you to carry collision, consider whether it still makes sense.
- Umbrella. Your car and homeowners policies probably provide some personal liability protection. Unfortunately, that protection may not be adequate to protect you from major claims and lawsuits. It may be wise to have an umbrella policy as well.
Article provided courtesy of: Brailsford Wealth Management of Davenport & Company LLC
The material contained herein is for informational purposes only and is not intended to be specific to any particular personal situation. This material has been compiled from sources believed to be reliable at the time prepared; however, Davenport does not guarantee or warrant its accuracy or completeness. Changes may take place in the future that are not reflected in this material. Any opinions expressed here are statements of judgment on this date and are subject to future change without notice. Please consult your professional accounting or legal advisor prior to acting on any information provided by us that may have an effect in these areas.