MONEY MATTERS: Insurance options worth considering

How confident are you about the insurance strategies you have in place to protect against an unexpected turn in your life? Do you feel like you have a clear handle on how to manage your insurance needs effectively? Before you answer, here are five aspects of insurance coverage that may surprise you:

Even a stay-at-home spouse
may need life insurance. 

We tend to think of insurance as something to replace income that would be lost if a person dies. But household contributions aren’t limited to take-home pay. For example, a stay-at-home spouse might fulfil a role – such as childcare and housekeeping – that would be expensive to replicate if they were no longer around. Think about the financial impact that loss would have on the overall budget and expenses of the household. An appropriate life insurance policy can help mitigate that burden at a time when mourning families have plenty of other worries.

Single people should
be protected, too. 

Assuming you have no dependents, there may be no obvious reason to have life insurance. But if you pass away unexpectedly, you may leave behind some expenses, such as funeral costs. Also, if you carry debts that outstrip your assets, family members may have to assume responsibility for them. One more consideration: Life insurance may be more economical if you buy it when you’re younger and healthy.

Insuring the lives of children. 

How would your life be affected if your child passed away? Would it impact your ability, at least for a time, to carry on with work and other aspects of your life?

While it’s a terrible prospect to have to contemplate, it’s a possibility for which you may want some financial protection. Life insurance for a young, healthy person can be very cost effective. 

Too many people risk
being underinsured.

According to a 2021 study, just 47 percent of women have life insurance coverage in place compared to 58 percent of men.

In most cases today, the need for insurance coverage is generally equal regardless of gender. 

The importance of
disability coverage. 

Suffering a disabling injury or illness that sidelines you from work can have a dramatic impact on your income. Most people make life insurance a priority, but for those who do not, the result is bills that risk going unpaid and financial goals unmet. 

Reviewing your protection needs is an important part of the financial planning process. Talk to your financial advisor if you have any concerns about your own coverage.

Jeff Jolly, CFP, is a Private Wealth Advisor and Sr. Vice President with Ameriprise Financial Services, LLC, in North Haven. He specializes in fee-based financial planning and asset management strategies and has been in practice for 16 years. Contact him at 203-407-8188 ext. 330. 


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