If you’re like most, you probably don’t know as much about insurance as you would like. According to the 2012 Insurance Barometer Study, 45% of consumers rated “knowledge” as either the first or second most important factor in purchasing life insurance. However, one-third have delayed their purchasing decision because they are unsure of how much and/or what type of life insurance to buy, and more than half who say they need more life insurance are holding off for the same reasons. And chances are, when it comes to other types of insurance, the knowledge gap is probably just as universal.
And when it comes to insurance, while a little knowledge is not a dangerous thing, a lot more knowledge is preferable. To make the right choice in coverage type and amounts, you need to first know what you don’t know—and then get answers.
Begin by answering the following questions:
- Does someone depend on you for financial support or some other form of assistance, such as full-time care taking or parenting?
- Do you have money set aside to pay your debts in the case of your death? Do you know how much your estate would owe if you died tomorrow?
- If you’re leaving a large estate, do your heirs have the financial wherewithal to pay the estate taxes?
- If you were unable to work due to a disabling illness or injury, how would you pay your bills?
- Do you know how to calculate your future earnings?
- Are you self-employed, or otherwise not covered under Workers’ Compensation?
- If you were to need long-term care, do you know what portion of the cost, if any, would be covered by your health insurance? By Medicare?
- Do you know the average annual cost of full-time nursing home care? Of a home-health aide?
- Do you know the difference between skilled, intermediate and custodial care? Between nursing homes, assisted living facilities and adult day care centers?
Do you want to know more on what is really insurance is? I am ready to assist you.