Ask someone who doesn’t sell insurance. – Ronald VanSurksum, AAM
Some types of insurance are no-brainers. You can’t get along without car insurance, home or health insurance, for example. The first big loss on any of these items would put you in the poor house.
BUT . . . what about other types of insurance. Is it worth the monthly premiums to have life insurance or disability insurance?
“Yes! As long as you don’t look at insurance as an investment,” says Ronald VanSurskum, certified financial planner. “Insurance doesn’t help you build wealth,” he explains. “It protects the money you have.” He adds: “Before you buy life insurance or disability coverage, ask someone who doesn’t sell insurance for advice.” As a certified financial planner, VanSurksum doesn’t sell insurance or anything else, but he’s always willing to answer questions about insurance coverage, as well as stocks, bonds and other investments. (Email your questions to firstname.lastname@example.org).
Buy a reasonable amount of life insurance
Life insurance protects a family from income loss due to the death of a major wage earner. Today, both parents usually contribute to family expenses, so both should be insured for reasonable amounts. The value of a life insurance policy should be enough to cover income loss as long as needed. More than what’s necessary only adds extra costs. Most do not need $1 million worth of life insurance, but parents of young children can use an insurance check to cover expenses until they can go back to work.
Consider disability insurance
Even if you live to be 100, you may find disability insurance useful. Some employers provide this type of insurance to get their people through health crises. If your company doesn’t pay for it, consider buying enough disability coverage to keep paying the bills if you’re sick or injured. A few bucks worth of protection can help you keep your savings and investments intact while you’re under the weather.
If you own a business, you’re wise to purchase a little liability insurance in case someone stumbles on the carpet in your office and breaks a leg – or sues you for malpractice. Travel insurance is also popular among people who take expensive vacations. You can reschedule your trip to Hawaii, for example, if a mountain is erupting on the big island. As pets are like family, many of us now opt for pet care insurance.
Whatever coverage you think you need, contact a financial planner first. Call 616.531.5220 for advice.
Manage Your Money is provided by Advanced Asset Management LLC Ronald Van Surksum, CFP 4555 Wilson Ave SW – Suite 2 Grandville, MI 49418
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