K.E.M. Strategic Partners LLC | 35 Village Road, Suite 100 | Middleton MA 01949 | P. 978-560-3404  |  F. 978.560.1623

 
 

Caring  |   Independent   |   Practical
Financial Services

Insurance Read Time: 3 min

The Value of Insuring Against Life’s Risks

Did you know that...

  1. Sixty-one percent of American workers have no private short-term disability insurance.1,2
  2. Sixty-seven percent of working people in the U.S. lack private long-term disability coverage.1,2
  3. Forty-eight percent of Americans have no life insurance.3,4
  4. Approximately 14 percent of American drivers are uninsured.5

If you ask a homeowner, replacing a roof is probably the least satisfying expense they will ever face. While the value of such an investment is obvious, it doesn’t quite provide the satisfaction of new landscaping. Yet, when a heavy rain comes, ask that same owner if they would have preferred nice flowers or a sturdy roof.

Insurance is a lot like that roof. It's not a terribly gratifying expenditure, but it may offer protection against the myriad of potential financial storms that can touch down in your life.

The uncertainties of life are wide ranging, and many of them can threaten the financial security of you and your family. We understand most of these risks – a home destroyed by a fire and a car accident are just two common risks, which could subject you to an outsized financial loss.

Similarly, your inability to earn a living to support yourself and your family, due to death or disability, can wreak long-term financial havoc on those closest to you.

Insurance exists to help protect you from these forms of wealth destruction.

Some insurance (such as home or car) may be required. When it isn't mandated (in the case of life or disability), individuals may be tempted to avoid the certain financial “loss” associated with insurance premiums, assuming the risk of much larger losses that are less likely to happen.

But insurance premiums aren't a financial “loss.” They are designed to help protect you and your family as you build personal wealth.

1. Bureau of Labor Statistics, 2020
2. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Federal and state laws and regulations are subject to change, which would have an impact on after-tax investment returns. Please consult legal or tax professionals for specific information regarding your individual situation.
3. LIMRA, 2021
4. Several factors will affect the cost and availability of life insurance, including age, health and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
5. AutoInsurance.org, 2021

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

When Markets React

When Markets React

When markets shift, experienced investors stick to their strategy.

The Twelve Steps to Living Confidently: Budgeting

The Twelve Steps to Living Confidently: Budgeting

One of the most important steps to become financially sufficient is to set up a realistic budget.

Fixed or Variable Mortgage, Which Should You Pick?

Fixed or Variable Mortgage, Which Should You Pick?

When selecting a mortgage, one of the most critical choices is between a fixed or variable interest-rate mortgage.

 

Have A Question About This Topic?







Thank you! Oops!

Overlooked Ways to Add Diversity to Your Portfolio

It’s an exciting time for American investors. Recent years have seen a boom in Americans investing in the stock market, with Goldman Sachs estimating U.S. households will spend $400 billion on equities in 2021, averaging an eyebrow-raising 44% allocation of their total assets to stocks. Between new technologies (like mobile trading apps) lowering the bar to entry and “meme stock” trends raising awareness, it’s no wonder so many people are waking up to the power and potential of investing.

Mortgages in Retirement

Explore the benefits and drawbacks to paying off your mortgage prior to retirement with this article.

Financial Fixes: From Health Scare to Financial Care

A medical scare can be a wake-up call in terms of your physical and financial health. Here’s how to strengthen your finances

View all articles

Home Mortgage Deduction

Use this calculator to assess the potential benefits of a home mortgage deduction.

Bi-Weekly Payments

This calculator estimates the savings from paying a mortgage bi-weekly instead of monthly.

Interested in a Fuel Efficient Car?

Estimate how many months it may take to recover the out-of-pocket costs when buying a more efficient vehicle.

View all calculators

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

View all presentations

Timing Your Retirement

This short video illustrates why knowing when to retire can be a crucial part of your strategy.

When Special Care Is Needed: The Special Needs Trust

A special needs trust helps care for a special needs child when you’re gone.

Bridging the Confidence Gap

In the world of finance, the effects of the "confidence gap" can be especially apparent.

View all videos