When was the last time you reviewed your insurance coverage? An
annual insurance review makes good financial sense. Here are points
to consider as you review your various insurance policies.
When was the last time you reviewed your insurance coverage? An annual insurance review makes good financial sense. Here are points to consider as you review your various insurance policies.
-Health care – If you have an individual policy, investigate whether your employer, union or professional association offers a less expensive group policy.
-Long-term care – Long-term care insurance may be advisable if you’re between the ages of 55 and 72 and you don’t have enough assets to fund long-term care.
-Life – The protection you need depends on the number of people who rely on you for support. Whole, variable and universal life policies combine insurance coverage with an investment future. If you want insurance only, consider term life.
-Disability – Studies show that less than one American in six owns enough disability insurance to provide a comfortable lifestyle during a two-year disability. Disability coverage is generally limited to 60 to 70 percent of salaried income. If you have adequate emergency funds, electing a longer waiting period for coverage to kick in will reduce your premiums.
-Homeowners – With fluctuations in the real estate market, it’s possible that your home is now under- or over-insured. Coverage equal to the current replacement cost (excluding land), not its original cost, is advisable.
-Auto – Liability insurance is a must, but consider dropping collision coverage when the premium is equal to 10 percent or more of the auto’s value.
-Umbrella liability – Personal liability coverage is included with most homeowner and auto policies. However, if you own substantial assets, umbrella coverage will provide additional protection at minimal cost.
-Unnecessary insurance – Avoid policies with narrowly defined coverage (such as credit, travel, or cancer insurance) if they duplicate other coverage.
Check out our Web site at www.bianchi-lorincz.com for more information on this and other interesting topics.
Mary Hubbell is a partner with the accounting and business consulting firm of Bianchi, Lorincz & Co. in downtown Hollister and in Morgan Hill.
