There are no guarantees in life, but purchasing adequate insurance is one concrete way you can eliminate some of the uncertainty about what would happen to your family or business in the event of job loss, illness, death, or other unforeseen occurrences.
After all, life these days is not as stable as it used to be. Things were different just a few generations ago. People seemed to enjoy much more stability and security with their careers, relationships, and finances. Now things seem to change at a head-spinning pace, causing us to adjust on a yearly basis to what we used to adjust just once a decade.
That difficult conversation
Unfortunately, most people are reluctant to think, let alone talk, about the possibility of being unable to work because of becoming disabled, or not being able to provide for their families because of death. Often neglected is the impact on a growing business if its key people are unable to take part in daily operations. These are very difficult conversations to have, and the natural inclination is to avoid them and simply hope for the best.
But it’s better to take the time now to think through these adverse scenarios and educate yourself about the insurance coverage options available. With confidence built from learning as much as possible about insurance, you’ll be better prepared for the future.
How much coverage do you need?
The starting point for building confidence in your insurance plans is to determine how much coverage that you need. Let’s use life insurance as an example. When considering your personal situation, here are a few things that impact coverage amount; do you have a mortgage, do you have an emergency fund, do you plan to help your kids or grandkids with their education or do you have any charitable organizations that you would like to leave funds to? When considering your business needs, here are some things that impact coverage amount; would your company need access to liquid funds for operations, are there any business debts, are there any tax liabilities that will be triggered or is your shareholder agreement properly funded? By working through questions like these, you will be in the best position to determine the proper amount of coverage to own. Depending on your circumstances, there may be many more questions to ask, however the questions above are a great starting point.
What’s your current coverage?
The next important step is to take a closer look at the insurance benefits you already have through your group benefits, your personal insurance plans, and insurance owned through your mortgage or attached to any associations you belong to. Take some time to understand these products, and you’ll feel much better knowing more about the insurance protection you already own. Often the terms and conditions of these policies may be difficult to interpret. A qualified insurance advisor can be a great asset in helping you understand the fine details of the various plans. Similar to many other things in life, the devil is in the details, so make sure you understand them!
Close the gaps in your coverage
Once you’ve determined the amount of coverage you need and surveyed the insurance products you currently have in place, the next important step is to implement a plan to insure any shortfalls. For instance, you may have purchased insurance a number of years ago, but since then you have purchased a cottage or possibly gotten married again. Or, your company may have changed insurance carriers and you no longer have disability insurance. These types of changes can lead to gaps in your coverages. A qualified insurance advisor can be a great asset to assist in helping you secure coverage to close these gaps.
Life is full of opportunities and interests. Why not clear some worry off your plate so you’ll be in a better position to take advantage of those opportunities and ultimately sleep a lot better at night?
Free online resources
Get started today by checking out some of the resources online that can help you determine your insurance needs. One excellent resource is at: www.lifehappens.org
Find out what is right for your needs, and give yourself one less thing to worry about in today’s ever-changing environment!
In the event you need additional assistance in simplifying your life, we have developed a free report that identifies implementable tips that you can act on immediately to begin simplifying your life. Visit www.simpleplanreport.com to download today!
Have a fantastic day and always remember to keep things simple!
Mark Landers is the creator of The Simple Plan Program and has been helping entrepreneurs simplify their lives for over 10 years. He can be reached at Mark R. Landers, CFP CHS, The Northridge Financial Group Ltd. at 416.705.6640 or mark@nrfg.ca.
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