Risk is a part of life. Did you know that...
- Approximately 100 million American workers have no private disability income protection,¹
- 30 percent of U.S. households have no life insurance,² and
- About one in eight drivers are uninsured?³
If you ask a homeowner, replacing a roof is probably the least satisfying expense he or she will ever face. While the value of such an investment is obvious, it doesn’t quite provide the satisfaction of new landscaping. Yet, when a heavy rain comes, ask that same owner if he or she would have preferred the nice flowers or a sturdy roof.
Insurance is a lot like that roof. It's not a terribly gratifying expenditure, but it may offer protection against the myriad of potential financial storms that can touch down in your life.
The uncertainties of life are wide ranging, and many of them can threaten the financial security of you and your family. We understand most of these risks-a home destroyed by a fire and a car accident are just two common risks that could subject you to outsized financial loss.
Similarly, your inability to earn a living to support yourself and your family due to death or disability can wreak long-term financial havoc on those closest to you.
Insurance exists to protect you from these forms of wealth destruction.
Some insurance (e.g., home or car) may be required. When it isn't (e.g., life or disability), individuals are tempted to avoid the certain financial “loss” associated with insurance premiums and assume the risk of much larger losses that are less likely to happen.
But insurance premiums aren't a financial “loss”; they are designed to help protect you and your family as you build personal wealth.
If you have any questions about protecting you and your family, please feel free to reach out to me.
- Council for Disability Awareness, 2015. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Federal and state laws and regulations are subject to change, which would have an impact on after-tax investment returns. Please consult legal or tax professionals for specific information regarding your individual situation.
- Facts About Life 2013, LIMRA. Most recent figures available. Several factors will affect the cost and availability of life insurance, including age, health and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
- Insurance Information Institute, 2015.