Henry Ford once said, “The best we can do is size up the chances, calculate the risks involved, estimate our ability to deal with them and then make our plans with confidence.” Leaving those risk calculations up to insurance professionals makes life a lot easier. Fortunately, the North Hills area has ample financial and insurance advisors ready and willing to help.
While booking insurance online is an option in today’s market, Wayne Alling, owner of the Alling Insurance Agency in Allison Park, recommends using an insurance professional to ensure you have proper coverage. “The best type of insurance policy is the one that’s in place when something bad happens,” said Alling. “Sure, you can jump online and get a policy in 15 minutes, but will you really have the coverage you need?”
The Importance of Reviewing Your Coverage Limits
Alling Insurance Agency covers several categories of insurance: automobile, commercial, condo, home, life, motorcycle and rental insurance. Even if you have coverage for the policies you need, it’s always a good idea to reevaluate your coverage limits.
“Things aren’t cheap these days and if you last looked at your policy two or three years ago, it’s time to take another look,” suggested Alling. “Wood for rebuilding a home after a fire costs about three times what it did a few years ago. If you were to have a catastrophic house fire and your home insurance policy coverage is $50,000 to $100,000 short, that money will come out of your pocket.”
Alling noted the same is true for automobile insurance. “Vehicle prices are much higher than they were two to three years ago, which means having the bare minimum amount of coverage required by law won’t necessarily cover your costs in the event of an accident or theft of your vehicle.”
The Benefits of Meeting with an Insurance Professional
Insurance can be confusing, and knowing what you need for specific situations is often difficult. An experienced professional within the insurance industry can convey their knowledge to you to help you choose the best options for you and your family. “I love it when people come to my office and allow me to educate them about their options in the insurance world,” said Alling. “I love telling them what each coverage does and how it would help them if they were ever in a particular situation.”
One of the most confusing types of insurance for most individuals is Medicare. Alling now offers Medicare coverage through his office. “Each year the thick Medicaid guidebook is issued to those eligible for coverage, and it is very confusing,” said Alling. “I’ve taken that guidebook and condensed it into a three-page paper that is much easier to understand and much more helpful for my clients.”
Do You Need Life Insurance? Questions to Ask Yourself and Your Family
No one enjoys discussing life insurance, but its importance cannot be denied. Life insurance not only provides income replacement for your family members, but it also helps with the succession of businesses and eases the burden of funeral expenses.
Bringing your family members together to gain their perspective and share your plans can be challenging and often uncomfortable. The financial planners at Todd Financial Associates in Allison Park suggest the following questions to start an open dialogue with your family:
How will your family be impacted emotionally by your passing?
Could your family sustain quality of life without your income?
What would need to change if you passed?
Would life insurance help alleviate the financial and emotional aftermath of your passing?
What do your children have to say about your plans?
Once you’ve opened the dialogue, the next step is determining how much life insurance you will need. Think through your priorities and how much your family members will need to cover these priorities for the years to come. Consider the need to potentially pay off credit card debt or mortgage loans for example. If you have children, how much tuition will be needed to cover their schooling? Are you planning on donating any money to charity when you pass, if so, how much and where will it be going? Thinking through and answering these questions will help you decide how much life insurance you need to have available to your family members.
Life insurance can also be used to leave a legacy. If giving gifts regularly to charities, nonprofits or churches of your choice is an essential part of who you are as an individual, you can utilize life insurance to extend that beyond your lifetime.
Once you have your priorities identified, connect with a financial planner to address your needs. It’s never too late to start a will. Life happens and unexpected events occur, so it’s better to be prepared for whatever situations arise.