Many people are under insured, yet are aware of how bad a loss of life, earning power or a key asset can be. SCM helps you become more involved in the process of Insurance Planning.
The products are now more intense and unique, therefore careful testing of both your needs and current plans designed to meet your needs is key SCM has basic knowledge with these products but relies on outside sources for help.
Insurance Planning Coverage
Gaps and doubling in your coverage should be looked at and cut out, limits of policy noted, kids coverage studied and costs compared. Areas of planning weakness include
- lack of review for a few years
- no backup plans for costly illness
- firm-sponsored plan with needed coverage
- new products may better fit needs
- resisting the habit of renewing without checking alternatives
Major areas of coverage include health, long-term health care, owners/renters, auto, life, extended personal and errors/omissions.
Newly designed products have more cost savings but have become more complex. Continuing competition results in price cutting to gain market share so it is important for SCM to keep abreast of product pricing. There are other channels of distribution other than the traditional agent agent including directly marketed, plans offered through associations and affinity groups or other financial institutions such as banks.
SCM helps you lower your costs by suggesting to
- raise deductibles
- earn discounts by purchasing from one source
- increasing the waiting time
- watching for discounts
- paying yearly rather than monthly
Other ways to save include not to under-insure, reducing coverage when children leave home and skipping credit life. Unused assets can be stored more cheaply in a safe box and if you have enough net worth, you need not insure at all.
Insurance Planning coverage is dependent on your profile. A young single professional has little need for extensive coverage and can depend on their employer for most needs while a high income self-employed may need additional coverage for professional liability. Middle aged client with family obligation may have a greater need for term life and long-term health. Wealthy retirees have little needs other than homeowners.
For other Planning topics, visit our Planning page.