We have made it past the chaos of September and are back to our regular schedules after the summertime. There is no better time to review your insurance needs than now. I can’t emphasize enough the importance of ensuring that you have adequate protection in place for yourself and your family.
The best place to start is to have a look at your current situation. Circumstances change as we move through life. You may have already purchased life insurance at some point in the past. Amazing. But what has changed since then? Does that insurance provide you with the current financial protection you need?
Inherently, our needs will differ at different stages of our lives. Generally, when you are younger, the focus is on paying off debts (like your mortgage, kids education etc) and building wealth. At this phase of life, income protection is important. As you get older, you will transition into a position where you have less debt and greater assets and wealth accumulation. Your insurance needs at this point in your life will then be more focused on estate or asset protection or preservation and wealth transfer.
Some excellent questions to ask yourself are,
- What do I have now and what do I need now and in the future? Are they compatible?
- Do I have the right insurance in place for things like covering my mortgage, replacing my income, topping up my education fund or making sure retirement plans aren’t interrupted?
- Should I renew my term insurance or switch to something more permanent?
- Am I paying too much for what I have, and does it actually function for what I need?
- Is my insurance appropriate to cover the tax bill on the assets I am leaving my children?
- Are my beneficiary designations still in line with my wishes?
Sitting down regularly with your advisor can help you answer these questions. There are so many insurance options available, and your advisor can help you find the right solutions to address your current and future needs and ensure all your bases are covered. Taking the time today will make yours and your family’s future that much brighter.