If insurance planning makes your head spin, or you are looking to re-evaluate the type coverage you need, you should listen to this episode of Worth It with Dustin Granger, CERTIFIED FINANCIAL PLANNER™. We talk about why insurance is an important part of your security pillar and how to plan for each stage of life, from single to married to long-term home care.
If you are just starting to learn about insurance or have been “in the know” for a long time, it is important to look at the whole picture when considering what to buy. Your security is just one of the 5 pillars of life planning, but it can have a dramatic effect on the other areas of your life, so looking at all the factors involved is a wise idea. A financial planner will have the full picture of your goals and financial situation and can offer a customized solution.
Sometimes knowing who to trust when planning your security pillar can be stressful and a little frightening. While the majority of insurance agents and CERTIFIED FINANCIAL PLANNERS™ have your best interests in mind, unfortunately there are a few that focus more on pushing a product than helping you succeed. Insurance is so specific to each person, it requires tailoring a plan that fits your needs. It is a good idea to ask your agent why a certain plan or policy may not benefit you. They will be able to explain in more detail short-term and long-term strategies for insurance. Don’t be afraid to ask questions when you don’t fully comprehend something and most importantly, decide whether you trust them or not.
If you are just starting to learn about #insurance or have been “in the know” for a long time, it is always important to look at the whole picture when considering what to buy. #WorthitPodcast @DRGranger #Insurance Click To Tweet
Dustin R. Granger, CFP® recommends only buying insurance you need. This will can help keep your premiums low and make sure you have the financial resources on hand for short-term obstacles. For example, Dustin said that most adults who are single without children probably don’t need much life insurance since there most likely isn’t someone depending on their income. However, a term policy may be a wise idea if you have loan debt or other financial responsibilities that would fall to your parents if something happened to you. As you move into later stages of life, such as having children or planning retirement, your insurance needs will change, so you can adjust your coverage. When planning to purchase insurance, it’s always a good idea to talk to an insurance professional that looks at your entire financial situation or a CERTIFIED FINANCIAL PLANNER™.
Life insurance is there to protect your loved ones if you pass away. It has other uses that we may cover in a later episode, but for now, we will focus on this one aspect. Protecting your loved ones could mean replacing lost income, absorbing debt, future investments, or future needs like college or weddings. The quality of life and level of income play a factor in how much coverage you should consider. Life insurance covers more than an unexpected debt, like covering a mortgage; it can also provide a financial boost for things like college planning or a wedding.
Dustin talks about the benefits of group insurance, usually through your workplace that offers a low-cost option. Term insurance is useful because it has an end date. Policies can be staggered over several years so the amount of insurance that you are paying for decreases as you get older. Additionally, Dustin talks about the importance of disability insurance, both short and long-term. Dustin says the costs of long-term disability can put huge financial stress on a family, so a policy that covers these unexpected situations may be a smart idea.
Disclosure: State insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. You may also visit your state’s insurance department for more information.
What if you had a clear formula to help you figure out how much to save… while paying down debt and enjoying life? It is possible… when you know your numbers.
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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Advisor Launchpad to provide information on a topic that may be of interest. Advisor Launchpad is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
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