Insurance is a peace of mind agreement – generally, it is something you need to have, but hope to never use. The purpose of insurance is to act as protection against possible negative outcomes and risks you cannot afford to cover yourself. Property losses, accidents, theft, liability, catastrophic loss… these are all risks in life that you want to prepare for with the hope that they never happen. Owning insurance will assist in managing your risk by transferring that risk to an insurance company, allowing you that peace of mind knowing if something were to happen, you are covered.
There are numerous types of insurance: homeowners, automobile, personal umbrella policies, life, disability, health, long-term care… you can even insure body parts! You have to be someone whose profession revolves around one thing and it would be a career-ending loss if something negative were to happen. A prime example of this is Bruce Springsteen insuring his voice. If he were to lose his voice somehow, that insurance would kick in and assist him while he adjusted to a new life.
Imagine if you could have peace of mind when it comes to your finances. If you could transfer that worry about your future in the same way you transfer the worry of how to pay for your house in case it burns down by purchasing homeowners insurance. Will I have enough to retire? When should I retire? How do I make sure I save enough for my kids to go to college? What happens if the stock market crashes; will I lose all my money if I invest it? How much will my family need to survive if something happens to me? These are all financial planning questions. It is common for one individual in the household to be in charge of finances, and while they may have a good handle on managing them, it is a difficult role for someone to step into if that individual passes away or becomes incapacitated. In this way, hiring a financial advisor is like buying a financial insurance policy.
It can bring you that security, stability, and peace of mind. Allowing an advisor to proactively answer all those hot button questions and to help protect your dreams is a great sleep-at-night-factor. With all of the unknowns in life, the best approach is to prepare for the worst and hope for the best, rather than hope for the best and reactively repair the aftermath. Let us worry for you!