Norton Suda, CFP
®, ChFC
®, RICP
®Assistant Vice President, Wealth Advisor, Canandaigua National Bank & Trust
[email protected]
Having proper insurance coverage for
those starting out in their careers can
seem like a daunting proposition. From
keeping up with student loan payments
and the ever-increasing costs of everyday
life, additional expenses are not always
easy to take on. However, having adequate
insurance coverage is an important part of
reducing financial risk and one of the best
ways to protect income and assets.
Life insurance is one of the most important
types of insurance to have to protect our
loved ones. An unexpected death can bring
about unexpected bills such as funeral
expenses and debt burdens, but it also
halts an important element of any financial
plan: future income. For those that have
loved ones that rely on them financially,
having adequate life insurance coverage is
essential to avoid a serious downgrade in
financial means and lifestyle.
Oftentimes, some life insurance coverage
is offered through employee benefit
packages, so check with your HR
department to find out how much, if any,
coverage you might have and then find
supplemental coverage to ensure you have
the appropriate coverage.
There are many types of life insurance,
a topic that is beyond the scope of this
article, and working with a professional is
one of the best ways to understand how
much coverage is needed for your situation
and what is the most cost-effective way of
gaining that coverage.
Disability Insurance
A more common occurrence than
premature death is becoming disabled,
whether temporarily or permanently.
According to the US Census Bureau, just
under 1 out of 12 Americans under age
35 reports having a disability and that
jumps to just under 1 out of 8 Americans
for those between ages 35 and 64 (Census
Bureau, 2021)1. Disabilities include not
only physical but also long-term mental
illnesses that can keep people out of work,
sometimes indefinitely.
Many employee benefit packages
include coverage for short term (usually
considered less than six months) and/or
long-term disabilities (usually considered
six months or longer). If your employee
benefits include disability coverage, it is
important to understand what it covers,
and more importantly what it does not
cover, and try to find additional coverage
if needed.
One of the more overlooked - but not less
important – insurances you may need is
property and casualty (P&C) which covers
physical properties and if someone is hurt
on or by your property, such as your house
or car. As you start to build your savings
and acquire assets, it is important to have
those assets protected from both damage
and liability. Car insurance is one of these
P&C coverages that many of us are familiar
with and protects the vehicle if it becomes
damaged, as well as provides coverage if
we injure someone else or their property
while operating our vehicle.
Another P&C coverage is homeowner’s
and renter’s insurance, both of which cover
the residence (in the case of homeowner’s
insurance) and the valuables of the
residence in case of damage from fire, theft,
and other threats. Umbrella insurance
covers beyond the previously mentioned
protections to provide coverage over and
above what either homeowner’s or auto
insurance will cover.
There are many factors to consider
when shopping for P&C coverage.
Consider working with a broker or noncommissioned professional to find the
best and most appropriate coverage for
yourself.
While it may seem like a burden to take on
additional insurance premiums, now that
you are building your savings and assets,
it is important to make sure that what
you have worked hard for is protected
from damage and liability. Even the best
financial situation can be turned on its
head when unexpected and unplanned
events occur. Reach out and talk with one
of our experts to learn if the coverages
you have are adequate and make the most
sense for your situation.
Source: 1) https://data.census.gov/table?q=disability
This material is provided for general information purposes only and is not a recommendation or solicitation to buy or sell any particular security, product or service. Past performance is not indicative of future investment results. Any investment involves potential risk, including potential loss of capital. Before making any investment decision, please consult your legal, tax and financial advisors. Non-deposit investment products are not bank deposits and are not insured or guaranteed by Canandaigua National Trust Company of Florida, or any federal or state government or agency and are subject to investment risks, including possible loss of principal amount invested.