Insurance - Do I Really Need It?

Insurance is an integral part of a successful financial plan. Many people view it as a burden or a waste of money. It’s funny, we insure our cars, our homes, but have a difficult time coming to terms with insuring our lives, our income, and even our long-term health care.

Insurance is simply the transference of risk from an individual to a company. And no, it doesn’t always “pay-off” but it certainly provides peace of mind. In this Covid-era, people should review their current insurance strategies.

Take Disability Insurance, did you ever think what would happen if you suddenly couldn’t work? I mean, a month or 2 would be bad enough. We saw many people over the last year who didn’t have work, who struggled to make it by. Imagine if your income was cut by 40%, AND, what was leftover was taxed. Could you live on that? Would it have a profound effect on the financial security of your household? It is said that during your career, you are 3 and a half times as likely to be injured or need disability coverage than to die and need life insurance.

Now, that’s not to say life insurance doesn’t need to be explored. I think at the bare minimum people should have a term life insurance policy in place. That means a plan that is outside the company you work for. Gap insurance. The problem with the group plan is when you leave or possibly get fired, you lose that insurance coverage. A lot can happen in a day, week, a month that can drastically change the financial security of your family. Term insurance can provide a safety net to secure the dreams you had wished all too well to achieve on your own.

As we get older, a more permanent policy is in order. Something that will stick with us till we die. You see, I see insurance as a way I can guarantee a legacy, guarantee a helping hand it's left for my spouse and children. This allows me the freedom to take the financial risks I need to succeed. The ability to spend and save every dollar I have to live my best life.

The new policies being offered have some added benefits. Many policies now will pay an accelerated death benefit, they’ll actually allow you to tap into your death benefit to assist with care should you become ill. The ability to pay bills and receive medical attention when you are most in need. It’s no longer, pay for long-term care, and if you don’t use it, oh well. Now you can parlay your permanent life insurance policy to assist long-term care. Now you have an option.

I think life insurance is important. It’s like your investment portfolio, you have to review how much risk you are willing to take and transfer that risk when appropriate. Talk to someone you know, like, and trust. If you are interested I can be that person.

My name is Brendan McPoyle. I’ve been offering financial guidance to clients, friends, and loved ones for over 20 years. I make your money work harder for you than you did for it!

 By Brendan McPoyle, CFP®, Partner / Wealth Manager at Princeton Global Asset Management, LLC. Call to schedule your financial review today: 1-302-268-6413