What Do You Protect?
Living in Balance means being able to enjoy today and still taking steps now to be able to enjoy your future. Enjoying today comes from some basics. Having something to do, being loved, and having someone to love are paramount. Also high on the list is feeling secure. How can you feel secure if you are concerned your most important possessions are at risk of loss? Thus we need to protect those treasured items.
Protect what you can’t afford to lose. IN MANY CASES THE BEST WAY TO PROTECT IS THROUGH INSURANCE. Most people understand getting home, auto, and medical insurance if they can afford them. That gets back to living within your means. They MUST be afforded or you’re not making the right choices on how you are spending your disposable money.
There’s More . . .
Protection is more than looking out for number 1, unless you have no loved ones that rely on you financially. Many people have dependents or partners they would want to help financially until those individuals could take care of themselves. This is where life insurances come into play, or disability or long term care. More recently these latter two have been characterized as “asset protection insurance” which is an apt description.
Insurance Is Complicated
Eventually I will write a book just about insurance. But that is not our purpose today. Rather I want you to understand the necessity of using insurance as a vital part of your protection plan. If you are young, insurance is inexpensive, regardless the type – life, disability, long term care. Permanent or temporary. My advice is buy as much temporary (think term life) as you can afford when you are young and “poor.” In the event life cuts your time here to a minimum, you will have created a financial safety net for those you care about. If you live longer and “in balance” you will create your own safety net as your real assets increase. Refine your coverages as you age and get more clear as to your need and available cash.
Second Opinions May Help
This is often not the way the sales person will suggest you buy protection. Permanent insurances have a significant recurring payment requirement for you and a sizable commission to the salesperson. Unfortunate. As a fiduciary I am honor bound to recommend the best product for your situation, which may well be the temporary, less costly type.
I don’t take commissions , but most agents do. Very few insurance agents are fiduciaries and their loyalty is to the company they represent. There are many honorable insurance professionals, which is why the ethics of the person you select to advise you is so important.
When I was about 21 my mother insisted I talk to our family “friend” who sold life insurance. Naturally he recommended the expensive type which meant very little insurance death benefit coupled with a modest savings account feature. Never liked that guy then and even less when I learned about other options. Act to secure a strong protection plan and you will go a long way to maintaining your life of balance.