Insurance may not be the most exciting topic, but it's a crucial part of protecting yourself and your finances. As we celebrate Insurance Awareness Day, let's take a moment to talk about why insurance is so important and how you can make sure you have the right coverage in place.
The key part of this day is the middle word, "Awareness." You don't have to be an expert in risk management, but it is incredibly valuable to be aware of what insurance is, what it does, and how it helps you. This is particularly true in terms of financial risk.
There are numerous types of insurance out there—health insurance, life insurance, auto insurance, and more. Each category of insurance is designed to cover different types of risk, whether it's medical expenses, property damage, or providing for your loved ones after you're gone.
Knowing the different kinds of insurance is all well and good, but that only helps when you know what you need. Everyone has different exposures based on what they have to protect. A financial professional can help you assess your risk based on your possessions and assets. This gives you a leg up when you have a conversation with an insurance agent who can get you the policies you need to be protected.
Once you have insurance in place, it's important to read your policy carefully and understand exactly what it covers. Many policies have limitations, exclusions, and deductibles that can affect your coverage, so it's essential to know what you're getting into. If you find the policy itself too dry to digest, have your agent go over it with you to help you better understand how your insurance works.
Having the policy set up is just the beginning. It's important to review your policies regularly to make sure they still meet your needs. Your coverage needs may change over time, and it's important to make sure you're still adequately protected. You may have new cars, new businesses, or even a new beach property that you need coverage for, and a review is the perfect time to discuss these changes.
Insurance is an essential part of financial planning and risk management. By understanding your coverage needs, working with a financial professional and an insurance agent, and reviewing your policies regularly, you can ensure that you have the right coverage in place to protect yourself and your finances. So, as we celebrate Insurance Awareness Day, take a moment to think about your coverage and make sure you're prepared for whatever life may throw your way.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Paradigm Advisors is a fee-only financial planning firm based in Dallas, Texas and Fayetteville, Arkansas. Paradigm Advisors provides comprehensive financial planning and investment management services to help clients organize, grow and protect their wealth throughout life’s journey. Paradigm specializes in advising well-established career executives through financial planning and investment management. As a fee-only fiduciary and independent financial advisor, Paradigm never receives commission of any kind. Paradigm is legally bound by certification to provide unbiased and trustworthy financial advice.