Four Reasons to Review Your Risk Management Strategy Now
As your net worth increases, your life and health insurance coverage provides a greater role in preserving your assets – and you – against the unknown.
To help you review your current risk management strategy, I developed the accompanying checklist to provide you with a way to think through your current coverage – and to help identify some potential action steps.
Your Risk Management Review Checklist
Underutilized Health Insurance If provided by your employer, are you taking full advantage of your health insurance? Have you chosen deductibles that are reasonable in relation to your needs to keep premiums as low as possible?
Inadequate Disability Insurance; Do you have adequate short-term and long-term coverage? Do you understand all of the details such as waiting periods, disability definitions and any total limits?
No Long-Term Care Insurance Many start looking at long-term care policies at about age 50. With rising nursing home and in-home care costs, it may be
prudent to review this type of protection earlier rather than later.
Not Enough Life Insurance; Are you taking advantage of employer sponsored coverage or that available through an organization? If purchasing individual coverage, do you have enough? Many advisers suggest that the primary breadwinners should have insurance equal to six to 10 times their annual incomes. Have you considered whether term or whole life policies provide the right combination of coverage and financial security?