June 28th is National Insurance Awareness Day. While it is a good idea to periodically review your insurance coverage (and any day will do), this day stands as a good reminder to not let it slip through the cracks. When properly allocated, insurance offers protection against life’s uncertainties (and certainties in the case of life insurance). Do you know how well you are covered if you are in a car accident or your house floods? Do you know how you or your loved ones would make ends meet if you were no longer able to work or if you were to die unexpectedly? June 28th is a great day to review your protection with a financial professional. In this article, we will discuss what makes insurance a vital part of any financial plan and steps you can take to have the right coverage in place.
Awareness of the different kinds of insurance is important as well as understanding which types you need. Understanding how each type of insurance works and how it helps you is a good place to start. It is incredibly significant to assess the financial risks involved with omitting insurance or improperly applying it. Each category is designed to protect you financially against different occurrences, whether it's medical expenses, property damage, or providing for your loved ones after you're gone.
Everyone has different circumstances in life that will factor into which insurance products they need. A financial professional can help you assess your needs based on your assets and other consequential factors.
Once you have purchased your various insurance policies, it's important to read them carefully to know what is covered. It is key to understand the limitations, exclusions, and deductibles that can affect your coverage or what may cause it to lapse. If reading the policy is too tedious, have your agent go over the most important aspects and make sure to ask questions. The last thing you want is to have your policy not cover you when you thought it would.
Simply having the policies is a great start but you will want to periodically review and update your coverage. Your needs are likely to change over time as your circumstances in life change. It is generally a good time to review your coverage when you make a major purchase or have a major life event, during your annual review with your financial professional, or simply on June 28th.
Insurance is an important part of a well-rounded financial strategy. By working with a financial professional and to set up and review your coverage, you can feel more confident that you have the right polices to protect your finances and those of your loved ones. There are many ways to celebrate Insurance Awareness Day. Whether it’s taking actual steps to improve your coverage or simply taking a moment to reflect, let’s all use this holiday to get better prepared for whatever life may throw our way.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. 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.