Walters and Hanna Insurance Agency talks how to avoid common insurance mistakes – LIVING WELL Magazine

Common Insurance Mistakes We All Make

Courtesy Walters and Hanna Insurance Agency, Akron LIVING WELL Magazine

We all know we need insurance but it’s not usually at the top of our priority list.  Insurance is a valuable tool used to protect our families from unforeseen events that can severely damage financial futures, but it does not often get much of our attention.

To help you assess your current situation, we have compiled a list of common insurance mistakes. You can determine if you are currently making any of them and make the necessary adjustments to properly insure you and your family before it is too late.

  • Not having any life insurance – Life insurance has two basic purposes: to provide estate liquidity and to provide sufficient assets for a surviving family to live on after the wage earner has passed away.
  • Having too much life insurance – If substantial assets are accumulated, then survivors may already be adequately provided for.
  • Not having life insurance on a non-working spouse – The value of a “non-working” spouse, which can be substantial, is often overlooked.
  • Underinsurance of personal residences – Most homeowners obtain homeowner’s coverage and then forget about it. They may fail to realize that if construction costs increase at 4% per year, the replacement cost of a property doubles every 18 years. Determine what your house (not counting the land) is really worth and then see if it matches your coverage.
  • Not having disability insurance – You’ve probably heard it before. Your family’s single greatest asset is more than likely your ability to earn a living.
  • Having a disability policy with too restrictive a definition of disability – Many policies cease coverage if the insured can perform any occupation after the second or third year of coverage.
  • Holding a disability policy after retirement – Make sure you aren’t paying premiums in retirement.
  • Not having long-term care insurance – Many people think Medicare covers long-term care expenses, such as nursing home and home health services. Medicare only provides short-term recovery benefits for skilled care in a nursing home and pays only for home health visits for a few weeks, and nothing for eight- hour shifts at home.  Long-term care insurance should be considered for financial security.

For a review of your current insurance needs, please contact Tim Walters, CPCU, CIC or Sandy Gasser, CLU, ChFC at Walters and Hanna Insurance Agency Inc., 330-668-2300 or 800-686-1133.