The No. 1 reason to purchase an insurance policy is to cover expenses that would otherwise create a financial hardship for you or your family. Many policies are often employer-sponsored, but if you don’t have access to affordable options or would like to review potential financial vulnerabilities that could be covered by insurance, please give us a call.
The following are examples of insurance situations sometimes neglected due to the presumed high cost of premiums or lack of convenient access.
About four in 10 (41 percent) of working Americans receive disability insurance coverage, usually paid for on a limited basis by their employer. However, less than a quarter (24 percent) opt to purchase additional voluntary disability insurance through their employer. First, it’s important to consider how much you might need to supplement the employer-sponsored benefit should you ever become disabled. Second, it appears the grass is always greener elsewhere when you don’t have a lawn — nearly half (47 percent) of workers say their employer doesn’t offer voluntary supplemental coverage, but more than half (58 percent) say they’d buy it if offered.1
Next, consider life insurance. It often seems like the people who need it most believe they can’t afford it. For example, about half of single parents with children younger than 18 don’t have any life insurance. Among those with three or more children under 18, 70 percent have no coverage. The majority say it’s because they believe it’s too expensive.2
Interestingly, single parents who can afford life insurance tend to go with a more expensive permanent policy. The majority (77 percent) of single parents with a policy purchased permanent coverage, although this could be because they are addressing additional needs beyond the death benefit, such as supplemental retirement income or leaving an inheritance. 3
It’s worth noting that life insurance could make a prudent gift from the parents of a single parent. After all, if something happens to the adult child, those insurance proceeds can help the grandparents care for their grandchildren.
When making travel plans, travel insurance is a popular trend these days. It’s not a bad idea given the problems some airports have had in recent years due to power outages, computer glitches and weather incidents. For example, more than 4,800 flights were delayed and 840 flights canceled during Easter weekend this year due to severe weather.4
There are a wide variety of travel insurance options, including coverage for canceled flights, medical expenses and evacuation expenses. Fortunately, travel insurance can be relatively affordable compared to the cost of a vacation; many plans start at just 4 percent of the trip cost.5
Speaking of extreme weather, make sure you’re covered for this year’s wildfire season on the West Coast 6, hurricane season for East Coast residents, and tornadoes and flooding for those in the middle of the country. Review your insurance needs well in advance, as some policies (like flood insurance) have a 30-day waiting period.7
Content prepared by Kara Stefan Communications.
1 Insurance News Net. May 1, 2019. “Survey: Just 4 In 10 Employees Protecting Income With Disability Coverage.” https://insurancenewsnet.com/oarticle/survey-just-4-in-10-employees-protecting-their-paychecks#/. Accessed May 6, 2019.
2 Susan Rupe. Insurance News Net. April 8, 2019. “They Aren’t Buying It: Single Parents And Life Insurance.” https://insurancenewsnet.com/innarticle/they-arent-buying-it-single-parents-and-life-insurance#/. Accessed May 6, 2019.
4 David Oliver. USA Today. April 18, 2019. “4,800+ flights delayed, 840+ canceled ahead of busy Easter, Passover travel weekend.” https://www.usatoday.com/story/travel/flights/2019/04/18/easter-passover-travel-flight-cancellations-delays-united-states/3505544002/. Accessed May 6, 2019.
5 Insurance News Net. May 2, 2019. “The Best Travel Insurance For Summer Travel.” https://insurancenewsnet.com/oarticle/the-best-travel-insurance-for-summer-travel#/. Accessed May 6, 2019.
6 Nicholas K. Geranios. Insurance Journal. May 3, 2019. “Busy Wildfire Season Along West Coast: Forecast.” https://www.insurancejournal.com/news/west/2019/05/03/525477.htm. Accessed May 6, 2019.
7 Donovan Jackson. WAFB9. May 5, 2019. “State officials urge families to get a head start on hurricane preparedness.” https://www.wafb.com/2019/05/06/state-officials-urge-families-get-head-start-hurricane-preparedness/. Accessed May 6, 2019.
Guarantees and protections provided by insurance products are backed by the financial strength and claims-paying ability of the issuing insurer.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.