In part 4 of our 6-part series delving into our concept of a Health and Financial Security (HFS) portfolio, we take a look at the goal of protecting assets. (Read part 1, part 2 and part 3.)
As a reminder, we at ConnectedHealth focus on four goals for one’s health and financial security portfolio – protecting and maximizing health, protecting and maximizing income, protecting assets, and saving for the future. Once you’ve accumulated assets – physical and financial – it’s important to protect them. Most products and strategies in this category are designed to help ensure that you can keep what you’ve worked so hard to accumulate.
At the foundation, critical products in this category are auto insurance and homeowners or renters insurance. Auto insurance is required in most states, and it’s pretty much a no-brainer if you own a vehicle. Homeowners insurance is also critical if you own a home – it helps cover damage or complete loss of your home and/or belongings. And if you rent, it’s important to remember that your landlord’s insurance probably won’t cover damage or loss of your belongings…but renters insurance will.
Personal liability insurance covers you if others claim you have injured them or damaged their property. Some personal liability insurance is often included in auto, homeowners and/or renters insurance policies, but you may want to have more, especially if you have a lot of assets to protect.
Identity theft is on the rise, and it poses a risk to your accumulated assets. Stolen identity can lead to stolen assets. While there are identity theft protection services available at a cost, there are also many important (and free!) steps you can take to reduce your risk of identity theft. Identity theft protection is a critical strategy for any HFS portfolio.
Long-term care insurance also plays a role in protecting assets, as it helps you avoid having to spend down accumulated assets in order to receive nursing care due to aging. Medicare typically won’t cover all the costs for nursing home or home care for the elderly, so some people purchase long-term care insurance to close the gap. Others choose to rely on accumulated assets. Long-term care insurance typically becomes an important HFS portfolio consideration for those in their 50s.
Next up…a deeper dive into saving for the future.