Insurance & Wealth Building

Learn why you must adequately insure your property, yourself–and your family so that you can build wealth more effectively regardless of where you reside…

 

It is very important that those who desire to build wealth in an efficient and highly effective manner reduce or minimize their risks to the lowest level possible based on their financial ability to do so.

 

At this time you may want to consider all areas of your life in which you need or should have insurance coverage –including other individuals and family members that you have an insurable interest in or others who may have an insurable interest in you.

 

Insurance provides you the needed vehicle to help protect your property, health, life and other areas of concern for you and your family so that you don’t have to borrow and go into further debt, tap into your savings and other accounts or liquidate your assets due to an untimely or unplanned event occurring.

 

In this discussion TheWealthIncreaser.com will show you why it is imperative that you understand the areas of insurance that may be applicable to you so that you can more effectively move toward making your dreams come true.

 

It is very important that you have insurance at the appropriate levels in all areas that could be of benefit to you and your family!

 

Property Insurance

Auto–Boat–Home–Motorcycle–Riders etc.

Auto–insurance for your auto is a requirement in most states and countries and you must normally carry minimum limits of liability–and in some states and countries property damage coverage as well.

Boat–if your boat engine is 50 HP or less your HO coverage may be appropriate–for greater HP you need a specific boat policy.  Each state in the U.S. have their own requirements when it comes to boat insurance.

 

In most cases boat insurance is a worthwhile investment as it can cover you from a number of perils–including theft up to higher limits than your home owners policy.

Homeowners or Hazard Insurance–you must have coverage for your home and the contents that are inside your home.  In most cases it is best to avoid percentage deductibles as it can end up costing you more in the event of an untimely event.

Percentage deductibles may exceed your normal deduction and may not be in your best interest as it can possibly cost you more when you have a need to file a claim.

Flood insurance is also worth consideration as it can be a cost saving coverage–especially if your home is located in a designated flood zone.

Motorcycles–you may need a separate policy in most states and countries.

Riders are additional insurance that provides coverage for specific items or perils.  Paintings, expensive jewelry and the like may require that you pay an additional premium to get additional coverage.

 

Title Insurance

Lender’s Policy

Lenders will require that you purchase a policy to protect their interests when you get a home loan.  The purchase of a policy to cover you and your family is optional but highly recommended as it can help protect you from title issues from the day of purchase and well into the future–up to the policy limits.

Buyer’s Policy

As mentioned above the purchase of a buyer’s policy at closing is normally optional but highly recommended if you are a home buyer.

Keep in mind that there are limitations on the policy as it will normally only provide coverage for the purchase price–not appreciation of your home that may occur in future years.

 

Business Insurance

If you have a business including an office in the home where you meet clients–you more than likely will have a need for coverage.  Depending on your business–coverage on key employees may be a wise investment as well.

Errors and Omissions insurance may be required if you are a professional and that coverage can protect your company, your workers, and other professionals against claims of inadequate work or negligent actions.

 

Disability Insurance

If you become disabled–you want income replacement of at least 60% and a disability policy may be appropriate depending on your current financial position and ability to pay.

 

Health Insurance

It is imperative that you have health insurance, including dental, vision, hearing etcetera–where appropriate.

 

Liability Insurance

If you own a business make sure you are bonded & insured when appropriate.  If you have a high net worth or you are a high income earner make sure you have an umbrella policy.

 

Umbrella policies are a life saver for those who have a real need for coverage as it can help prevent you from coming out of pocket to settle large liability claims that could adversely affect your net worth.

 

Life Insurance

A major area of insurance that you want to get right at the earliest time possible is the coverage for your life–whether term insurance, whole life or a combination.

 

Whether term or whole life you want to insure that you and your family are covered at the appropriate level based on your financial position at this time.

 

Long-Term Care Insurance

With long-term-care costs rising yearly it is important that you have the appropriate coverage or a plan in place that allows you to pay monthly payments for long-term care from your personal savings.

 

Mortgage Insurance

MIP

Mortgage Insurance Premiums, commonly known as MIP is insurance for an FHA government loan that provides protection against the risk of loss to lender due to low down payment requirements of an FHA loan.

PMI

Private Mortgage Insurance, commonly known as PMI is insurance for a conventional loan that provides protection to lender against the risk of loss due to low down payment (less than 20% down).

VA Funding Fee

VA funding fee allows lenders to provide loans at little to no down payment for veterans–and at its core is protection for lenders who offer VA loans.

In some cases the above insurance fees will be held in escrow and you would include the fee in your monthly mortgage payment.

Mortgage Life Insurance will pay off your mortgage in the event of your untimely death or possibly inability to work and the premiums are often high compared to other insurance products.  They are often promoted by lending companies, life insurance companies and other financial providers.

 

Rental Insurance

Provides protection against property that you own while renting a premise up to policy limits–therefore you won’t have to come out of pocket to replace the covered items.

 

Rental insurance could be coverage for contents in your apartment, a rental house or other covered property.

 

Self Insurance

Self-insurance is the ideal position to be in as it allows you the ability to provide insurance to yourself and possibly family members and it is a lofty goal.  Your net worth is effectively so high that you don’t have a need for life insurance or possibly other insurance products.

 

Be sure to use caution with this approach as subjectively thinking you can self-insure may lead to you not having the coverage that you need.  Use this approach wisely and consult with a number of financial professionals if you anticipate using this strategy.

 

Even if you can self-insure–carrying insurance in a number of areas (particularly life insurance) can be a part of a well thought out estate planning strategy–if done right.

 

Umbrella Insurance

Provides additional liability coverage on top of what you may have in your home and auto policies, therefore preventing or reducing the likelihood that you will have to tap into your personal assets if you are liable after a lawsuit is filed against you or your household.

 

Other Insurance

Burial, insurance that covers your mortgage, accidental and other products are on the market and they are often heavily marketed to target audiences.

 

In most cases the premiums are high compared to the payout and you may have better options, therefore it is important that you shop for your insurance needs in an appropriate manner and in a competitive manner based on your needs, desires. and ability to pay on a consistent basis.

 

A number of companies–and most notorious Lloyd’s of London will insure just about anything including what you may think is not insurable.

 

If you have something or someone that you need to insure and traditional insurers don’t cover–consider going outside the box–so to speak–to find the coverage that you need when and where applicable.

 

Dismemberment, accidental injury and other policies that insurer’s come up with are available and you must do a careful, critical and analytical review of whether those insurance products are right for you.  By doing so you can stay on a more positive path toward making your dreams come true.

 

Or another way of looking at it is–will these products benefit me and my family the most or the insurer the most?

 

Conclusion

 

You must proactively analyze all areas of insurance to determine if you need coverage in areas that are applicable to you and then search the marketplace to find the best insurance products that fit your needs and goals.

 

It is imperative that you select a highly rated insurance company that on the surface looks like it will be around well into the future as you want a solvent company that is well managed and can pay out benefits well into the future.

 

By introspectively contemplating your need or requirement for insurance in all areas of your life that is applicable to you and your loved ones, you can position yourself for a lifetime of success and reduce the risks that you face–thereby putting you on a a more solid pace–to win your financial race.

 

Also realize that a properly funded emergency fund is a form of insurance (although not in the traditional sense) and can help you avoid using your insurance policy for minor occurrences (thereby increasing your premiums) and can help prevent you from tapping into your retirement and other accounts, thereby “insuring” a more prosperous future for you and your family.

 

You can now reduce the anxiety in your life by utilizing insurance appropriately so that you can avoid financial strife.

 

Isn’t it time you decide to give it your best!

 

All the best to your insurance and financial success as you now should expect nothing less…

 

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