A Comprehensive Look At Your 2023
By Nick Kendall
I grew up in a home with a Dad who taught us how to look through the lens of “risk management” as we navigated through life. Overwhelmingly this has been a great discipline for me to take on as I walk together with my own family, with a smidgen of compulsiveness too!
Several years ago we were combing through pictures at my mom and dad’s house, and we came across a photo I had probably blacked out from my memory bank. My dad was a professional welder, and when it came to me fulfilling my chore for edging the yard with the weed eater, I was to wear one of his welding helmets for protection. Granted, give credit to my father for protecting the physical welfare of his first born child, but it didn’t come without its measure of self consciousness. Middle school boys tend to be awkward physically in general, but then add a large welding helmet to their frame, and you have a scrawny looking “storm trooper” from Star Wars doing yard work on arguably the busiest street in our town.
There are several ways to handle risk. My Dad chose to “reduce my risk” by using safety equipment during yard work. Often times I buy a product for less than $50, and I’m asked if I would like to buy the warranty plan. I choose to “retain the risk” and bear the burden of loss. Many activities demand me to “avoid the risk” completely, like refraining from cliff diving, sky diving, etc. Then there are aspects of our lives and assets where we choose to “transfer the risk”, and purchase insurance to protect us from a larger loss. This happens to be relevant to our home, auto, life, disability, or even business related insurance needs.
We emphasize an ongoing monitoring of your overall needs for your financial planning, including at minimum, an annual review with us. Your strategy for the ever changing needs for your risk management is an important part of your comprehensive strategy also. This segment of planning demands a similar continuous evaluation with the professionals you work with in these areas. You hear from your Property and Casualty agent, life insurance provider (if you have one outside of us), or even your benefits department (health, life, disability, long term care, etc.), but discount their prompting for different reasons. Truly, meeting with them helps you to be comforted to know your coverage for these matters are meeting you, and your family’s needs fully.
Our encouragement is to schedule a time with your insurance providers or professionals to review these areas:
- Review your Home, Rental, and Liability policies with your agent. You may be over, or under insured, and changes may need to be made.
- While meeting with your insurance agent, ask them about their “Umbrella” policies (PLUP-Personal Liability Umbrella Policy). These policies tend to be very cost efficient, and they add liability coverage to your home and auto policies in the case of a large, or catastrophic event which happens to name you negligent in the accident. The policy can become the larger target in an unfortunate lawsuit instead of your “other” assets.
- Set up a time with your Benefits department at work to review your different benefit offerings. This may demand calling someone differently for your health, life insurance, disability, and other covered benefits, but at least you will be reminded and educated on your current coverages.
- Reach out to your Life Insurance agent to review your policy, current coverage, current and future needs, and beneficiary information.
- If you are on Medicare, reach out to your Medicare advisor outside of the “open enrollment” period to review your current coverage and potential strategy for needed additions, or subtractions, to make for the next enrollment season.
- If you are a business owner meet with your insurance professional to monitor your business insurance needs.
If you have any questions on these Risk Management strategies don’t hesitate to contact us to discuss thoughts, ideas, strategies, tools, and potential referrals to meet your current, and future needs.
Have great start to your 2023!!
Your FPI Team