How confident are you about the insurance strategies you have in place to protect against an unexpected turn in your life? Do you feel like you have a clear handle on how to manage your insurance needs effectively?
Before you answer, here are five aspects of insurance coverage from Arias & Partners Wealth Advisors that may surprise you:
1. Even a stay-at-home spouse may need life insurance.
We tend to think of insurance as something to replace income that would be lost if a person dies. But household contributions aren’t limited to take-home pay. A stay-at-home spouse is fulfilling a role that would be expensive to replicate if they were no longer around. Think about the financial impact to the household if the spouse who took care of the home and other family members needed to be replaced.
2. Single people should be protected too.
Assuming you have no dependents, there may be no obvious reason to have life insurance in place. But you may still leave behind some expenses, such as funeral costs. Also, if you carry debts that outstrip your assets, family members may have to assume responsibility for them. One more consideration is that life insurance may be more attainable and economical if you buy it when you’re younger.
3. You may want to insure the lives of children.
How would your life be affected if your child passed away? Would it impact your ability, at least for a time, to carry on with work and other aspects of your life? While it’s a terrible prospect to have to contemplate, it is a possibility for which you may want some financial protection. Life insurance on a young healthy, person can be very costs effective in most cases.
4. Too many people risk being underinsured, especially women.
According to a survey by the Life Insurance and Market Research Association, just 56% of women have life insurance coverage in place compared to 62% of men. In most cases today, the need for insurance coverage is generally equal regardless of gender.
5. Disability coverage may be even more important than life insurance.
Suffering a disabling injury or illness that sidelines you from work can have a dramatic impact on your income. Most people make life insurance a priority, but for those who do not, the result is bills that risk going unpaid and financial goals unmet.
According to the Social Security Administration, more than one in four Americans age 20 or older will become disabled before retirement age. The risk is greater than you think.
Reviewing your protection needs is an important part of the financial planning process. Talk to your financial advisor if you have any concerns about your own coverage.
Carlos F. Arias, CRPC ® , CLTC
Private Wealth Advisor
Arias & Partners Wealth Advisors
A private wealth advisory practice of Ameriprise Financial Services, Inc.
An Ameriprise Private Wealth Advisory Practice
Carlos F. Arias, APMA, CRPC ®, CLTC, is a Private Wealth Advisor and Business Financial Advisor with Arias and Partners Wealth Advisors, a private wealth advisory practice of Ameriprise Financial Services, Inc. in Berkeley Heights, NJ.
He specializes in fee-based financial planning and asset management strategies and has been in practice for 20 years.
To contact him,
100 Connell Dr
Ste 2300 RM 233
Berkeley Heights, NJ 07922-2737
Investment advisory products and services are made available through
Ameriprise Financial Services, Inc., a registered investment adviser.
Ameriprise Financial Services, Inc. Member FINRA and SIPC.
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