As a new year gets underway, there are a lot of New Year resolutions being made. Whether you want to pay down debt or boost your retirement account contributions, now is a time that many look forward to what they can accomplish in a shiny new year.
While you are preparing all sorts of lofty goals for 2013, though, don’t forget one of the basic ways to protect your assets: Make sure you have adequate insurance coverage.
Review Your Insurance Policies
Now is a great time to review your insurance policies. Insurance is designed to help you recover from losses to some of your biggest assets:
These are items that aren’t easily replaced, and that can be expensive. If you have a business, or a high net worth, you might need additional types of insurance, such as business insurance or umbrella insurance, to better protect yourself.
Look over your various insurance policies, and determine whether or not you have the right coverage. Homeowners insurance is a good example. Many consumers purchase homeowners insurance with their homes, and then forget about it. If your home has appreciated over time, or if you have made improvements to it, or if you have bought expensive things to furnish it, the coverage you have might need to be updated.
Consider your various insurance policies, and determine whether or not they provide you with proper coverage. You want to be able to replace your car if you are in an accident, and you should be able to have the coverage you need to financially survive a major medical catastrophe. Make sure you review your various policies, and then make a plan to change your coverage if necessary. You might have to wait until your auto policy renews, or until open enrollment comes around again for your health insurance, but take the time now to prepare for your next move.
Don’t Forget the Life Insurance
No asset protection plan is complete without the right life insurance coverage. Life insurance isn’t about preserving your assets for you to enjoy. Instead, a life insurance policy is designed to help your family in the event that you pass on. It’s especially important for a primary breadwinner to have adequate life insurance. Without it, your family could struggle financially after you die.
Make the time to calculate your life insurance needs. There are different ways to determine your life insurance needs, so really think about what makes the most sense in your situation. Figure out how well your family would survive without your income, and then plan for the worst. You want to make sure that your family has the assets needed to live comfortably after you are gone.
Even though it can be a pain to make insurance premium payments, the reality is that there are insurance policies that can help you protect your assets. Without adequate insurance, an unexpected disaster or setback can result in financial ruin. The right insurance coverage can reduce your susceptibility to such problems, and protect your family’s finances.