Update Your Financial Plan Annually For Insurance – Part 5
Monday, November 21, 2011, 2:00 AM | Leave Comment
First off, you need insurance to protect family and assets. Life is unpredictable and as such unexpected events can happen anytime, anywhere. In order to have some protection in life, you need insurance of some sort. Once you do that, the next best thing is to evaluate your needs annually to make sure you have the right amount of insurance and it’s all in the right places.
Now, there are many forms of insurance. Life, health and long-term insurance to mention at a minimum that comes to mind..
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More Life Insurance when your family is growing
Experts suggest that life insurance may be a good place to start. Your family may be growing. Your needs will change. You might want to increase the amount of your life insurance. It will have protection for your loved ones from a devastating loss of income. It might even help in the emotional pain of losing a parent or spouse.
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Less Life Insurance when you get older
On the other hand, most people find that as they get older, their net worth climbs and their children reach adulthood. At that stage, they need less life insurance.
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Health Insurance
If you wish to reduce your life or disability insurance, you could apply the savings toward your health insurance. That becomes more critical as you age. You will find that the cost of health insurance continues to increase.
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Long-Term Care Insurance
You might also benefit from looking into long-term care insurance, which continues to mature as a product and offers a variety of features and options. Talk to your financial adviser.
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Beneficiary Designations
Finally, when you do your annual review, a simple check of your beneficiary designations is a must. It’s easy to do. Don’t neglect it, otherwise it could have a huge negative impact.
The considerations surrounding disability insurance are similar.
In a Nutshell
While all of this might seem overwhelming and sound like a lot of ground to cover, reviewing and updating your financial plan is well worth the effort.
This is the last post in this series of 5 parts.
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