Protection? Protection from what?
I live in a dangerous city according to some. It’s on the news day and night. Robberies, shootings, collisions, mass murders, violent domestic disputes, and more blood and guts. TV and Twitter broadcast these events to set the undertone for advertising. Advertising? Where are you going with this blog? I’ll tell you where. Ad after ad for home security systems, inside and outside cameras, security windows and doors, security patrols, and all manner of protection from bad guys and bad things. The advertisements purport to solve the problem you were just exposed to on the news.
Now I want to speak about another sort of protection and this can be construed as an advertisement for our services. So be it.
As financial planners, we routinely check on the protection of your family and its financial assets. That protection comes in various forms. Life insurance is the most common topic we discuss and calculate. How much protection do you need for loss of income resulting from premature death? Protection, in this case, comes in the form of tax-free cash so survivors can meet expenses that go on after you’re gone.
A second kind of protection still having to do with the loss of income is insurance to make up some of your income that is lost if you are disabled and unable to work. It could cover a short time period or a longer period and there are insurance options to provide cash, sometimes tax-free, during a period where you are unable to work due to illness or injury.
Another issue is to protect your identity. Identify theft is an increasing crime due to the glorious internet which provides many wonderful tools, but also leaves us more vulnerable to the bad guys. Those cybercriminals, who instead of having to break into our homes and steal our property, break into our online accounts and steal without having to leave their workstation. Your homeowner’s insurance policy can afford you some protection if you choose to add it.
Lastly, I’d like to mention estate planning documents such as a will, durable power of attorney, advance health care directive, and maybe a trust, that affords your survivors protection from the government and others. The latest tax act was good for some people but added more complexity to others in regards to estate planning. Don’t just assume it’s only for rich people. We all need protection in my opinion.
In summary, we need protection from:
- Loss of Income
- Loss of Life
- Loss of Identity
Make sure your financial plan and financial planner addresses these issues. It’s important for you and your family’s protection.