Many “causes” have a dedicated day, week, or month. This year I learned that Good Friday, before Easter, was also designated National Tartar Sauce Day due to the lobbying of the Frisch’s restaurant chain. No kidding, that is a Fun Fact! On a more serious note, May is Disability Awareness Month. One’s greatest financial asset is the ability to earn an income, so the ability to earn an income can and should be insured against an illness or injury that may prevent one from working. In many ways, disability insurance is more important than life insurance because one is still living and has expenses. People naturally think about life insurance to cover a premature death, but disability is actually more likely to happen. (Thank the actuaries for calculating the odds.) Disability insurance is less expensive when purchased at a younger age, so review it sooner rather than later. More information is available at disabilitycanhappen.org, and we are certainly happy to discuss this further.
While we are on the topic of insurance, do you know what “umbrella” liability insurance is and how much you need or have? Umbrella liability coverage is excess liability coverage in addition to your auto and home insurance. Umbrella liability insurance is important for high-net-worth individuals because most auto and home insurance policies have a liability limit of $250,000 to $500,000 that covers you, for example, if you have a traffic accident and injure someone and they sue you.
[Tweet "In many ways, disability insurance is more important than life insurance."]
We frequently speak about “stages of life,” and there are two stages when it is extremely important to have umbrella liability coverage. The first is when you have teenage or college-age drivers on your auto policy. The second stage is when you are at an older age and your alertness and reaction time may not be as fast, or cataracts or other issues develop that increase your risk of car accidents. We’ve all seen the older person who shouldn’t be driving. Of course, that’s the other guy, not us, but sometimes we all need to look in the mirror. Take note of the many advertisements from personal injury attorneys. In our increasingly litigious society, you should have auto/home/umbrella liability equal to or greater than your net worth. It costs a few hundred dollars per year per million dollars of coverage and can be a source of financial peace of mind.
New Feature: My Wealth
For our Personal Wealth Management clients, we are rolling out a new technology source to review your investment reports called “My Wealth.” Yes, we stole the name from the “My Charts” term commonly used in the medical profession. We encourage you to register for the program and “click around” to explore it.
My Wealth charts provide multiple levels of portfolio analysis by clicking on each section of a report to drill down to a further level of detail. As with all new technology, the best way to learn about it is explore or hit the “Next” button at the top.
As always, please contact us with any questions, news, or comments.