Get With the Times

I find it interesting (and so do many, many people with whom I discuss this subject) that our financial lives are backward. Allow me to explain.

When we are twenty- and thirty-something adults, perhaps in college, perhaps with young families, it seems that money is a little hard to come by. Things are tight, and those who haven’t been taught the best way to handle their money might owe more than they own. When our children are grown and we approach retirement age (providing we have saved and invested wisely in the interim years), money seems to be a bit more available and our needs fewer.

That being said, the latter scenario requires less financial protection than the former. What do I mean by “financial protection”? One word: INSURANCE.

As our lives evolve, we get older, our physical, mental, spiritual, and emotional needs change. Doesn’t it stand to reason that our insurance needs change, too? Last week I encouraged you to evaluate your net worth and mentioned final arrangements. (Remember I said you weren’t going to want to discuss it? You didn’t, did you? And I’ll bet you still don’t want to.) As your life changes, your insurance needs change, too. And I’m not just talking about life insurance. ALL your insurance needs can change over time.

Case in point–the value of homes has gone absolutely C.R.A.Z.Y. in the last year. If you haven't upped your insurance, I would almost guarantee that your home is underinsured. 

My auto and renters (and eventually homeowners again–I’m in transition) agent checks in with me annually to see how I am. He really cares. Really, he does. He just wants to make sure I have the right amounts of the right kind of insurance. I like it. It’s kind of like having a super-protective boyfriend. Everybody should have one.