Jentner Wealth Management 302 N. Cleveland-Massillon Rd. Akron, Ohio 44333-9303
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Insurance is vital, but don’t make these buying mistakes Deductibles, exclusions, premiums, terms, riders: the jargon and complexity of insurance baffles many consumers. Unfortunately it also leads to insurance mistakes. Here are some of the most common; all of them can imperil your financial plan. Use this list as a checkup for your own needs (and talk to your financial planner and insurance professional before making any rash decisions).
Ignoring potential liability can be damaging. When was the last time you saw someone who was injured go to court for less than $1 million? A $1 million umbrella liability policy may cost as little as $200 a year and will supplement your homeowner’s and auto policies.
Ignoring disability Although a young family should have adequate life insurance, an even bigger risk is loss of income due to a longterm disability. Workers under 65 have a greater chance of becoming disabled than of dying. A disability policy can be invaluable if this happens.
Buying narrow coverage
Buying too little Homeowners run the risk of not being able to rebuild their homes if they carry too little replacement coverage. Young families often fail to get enough life insurance to cover expenses for survivors if a chief breadwinner dies early. Buyers of cash-value life insurance are frequently seduced by the “investment” aspects of the policy. However, in many cases long-term investments can be made more cheaply and tax effectively outside of life insurance.
Too many consumers succumb to sales pitches or specialized insurance policies. Burial insurance, cancer insurance, accidental death insurance and others may seem cheap, but that’s because they are unlikely to pay off. Instead, a good life insurance policy will handle such eventualities.
Over-filing Filing small claims, especially on a homeowner’s policy, may cause higher premiums or even cancellation of insurance. Consider your policies as disaster coverage rather than a piggy bank for small repairs and damages. Self-insure for small items by increasing your deductible, which will result in a lower premium. 4
Jentner Report The
Winter 2012 “Financial life planning provides better wealth management by asking smarter questions, listening more carefully and applying sound financial and investment strategies to help you achieve personal and objective goals. It is not something different or new; it’s simply planning the right way.” The Jentner Report is published quarterly by Jentner Wealth Management, 302 N. Cleveland-Massillon Road, Akron, Ohio 44333-9303, 330-668-1000. © 2012 Jentner Wealth Management. All rights reserved. Information has been obtained from sources believed to be reliable, but its accuracy and completeness, and the opinions based thereon, are not guaranteed, and no responsibility is assumed for errors and omissions. Nothing in this publication should be deemed as individual investment advice. Call Jentner Weatlh Management for consultation before making an investment decision. Any performance data published herein are not predictive of future performance. Investors should always be aware that past performance has not been shown to predict the future. Jentner Wealth Management is not a certified public accounting, tax or legal firm. We do not engage in the preparation of tax returns or provide legal advice. If in doubt about the tax or legal consequences of an investment decision, it is best to consult a qualified expert. The Jentner Report is printed for our clients and select investors. If you have received this by mistake, please contact us to have your name removed from our mailing.