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Are You Covered?

wealth Sep 07, 2020

It's not enough just to build wealth, you have to protect it! You may not perceive yourself as having wealth, but if you have money in your checking account, a savings account, retirement account at work, car, house or all of the above - you have wealth! Let's talk about various types of insurance you should be considering to keep yourself protected. 

‚Äč1. TERM LIFE INSURANCE
- If you have anyone who depends on you financially, you NEED life insurance. Term life insurance (as opposed to whole life, universal life, etc) is inexpensive. We all feel nothing will ever happen to us, but the unfortunate reality is that it's possible. It would be bad enough for your family to lose you prematurely. Don't add insult to injury by leaving them in financial disarray. 

2. LONG TERM DISABILITY
- Statistically, it is far more likely that you would need to utilize long term disability insurance than life insurance. A sudden inability to work could leave you financially destitute with no warning. Make sure you have a long term disability policy that ideally provides at least 60% of your current pay. If your workplace doesn't offer a policy, seek one out from an insurance broker.
 
3. ?SHORT TERM DISABILITY
- If you can cover your expenses for 90 days (the duration of short term disability) because you have a fully funded emergency fund AND your employer doesn't pay 100% of the insurance policy premiums, you could consider skipping this one. 

4. IDENTITY THEFT INSURANCE
- I hate that this is even a thing, but the reality is that identity theft is a MASSIVE problem worldwide. There are lot of things you can do to reduce the likelihood of your credit being stolen. For one, we keep our credit frozen at all times unless we are opening a new account. Despite precautions, theft is always still possible - and has the potential to be both massively expensive and stressful. Our policy covers monetary losses, and has an agent that will do the majority of the paperwork required if needed.

5. HOME & AUTO COVERAGE
- This one is fairly obvious!!

6. UMBRELLA POLICY
- If you have substantial assets, consider a personal umbrella policy. They are surprisingly inexpensive. Most require you to meet certain minimums on your home and auto policies before you can be considered. 


There are entire books written about asset protection. This is a mere scratch on the surface of this topic, but a few basic insurance policies can go a long way towards getting you started.

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