Do You Have Enough? Assessing Your Insurance Coverages

There are so many different types of insurance, such as life, health, disability, Long Term Care (LTC), personal property, home, etc. We will talk about just a few areas of insurance here. 

When was the last time you reviewed your life insurance coverage? Have there been any changes in your life since you first purchased your life insurance, such as a new child? You want to make sure that you are keeping up to date and reviewing your life insurance periodically. If you have more dependents than when you first purchased your insurance, you may need to add coverage. By reviewing your life insurance periodically you can make sure that you have the appropriate amount of coverage and that your beneficiaries are current.

Do you have disability insurance? Do you know if you need this insurance? It is an insurance policy that insured you as a worker in the event of an occupational mishap resulting in a disability. The benefit that disability insurance provides is compensation for you as an injured worker for your loss of pay. In addition, it is important to evaluate if you have an employer sponsored disability plan to determine if you need to purchase an individual plan. You do not want to have to pay for too much insurance; however, you want to be adequately prepared for the future in case you are unable to work and provide an income for your family.

In regards to insurance for property, the Insurance Information Institute has a website call KnowYourStuff.org where you can download home inventory software for free. A home inventory is a pictorial archive of all the stuff you own including not only your house, car, and computer, but also commonplace items such as a TV and shoes. By doing this you can make sure you have enough insurance to cover your belongings in the event of a loss, get insurance claims settled faster in the event of a loss, and substantiate losses for your income tax returns.  Knowing how insurance works and how much you need is very important.