Protecting what’s important: How insurance can help you plan for unexpected financial events
Find insurance solutions that can help secure your family’s future while also supporting your financial goals.
Being financially prepared for unexpected events is a critical area of financial planning. Having the right type and amount of insurance can help you protect your income, build wealth tax-efficiently, protect your assets and leave a legacy.
An Ameriprise advisor can work with you to regularly review your insurance coverage to ensure it aligns with your financial goals and recommend solutions based on your unique situation.
As you consider your insurance needs, here’s an overview of how to use insurance to help protect your family’s financial future:
Consider the risks
The right type and amount of coverage for every individual and family will vary based on your financial situation, including your income, debts and assets and short- and long-term goals. In considering your options, evaluate the risks you might encounter — and what an unexpected event would mean for your family’s finances and quality of life.
Learn more: Why life insurance? 6 ways it can help protect and achieve your financial goals
Understand your insurance needs
At its most basic level, insurance transfers the risk of financial loss from you (and your family) to an insurer. Here’s a brief overview of the essential types of insurance:
|
Type of insurance |
Who’s it for |
What it protects |
How it can help you plan for the unexpected |
|---|---|---|---|
|
Income protection |
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Anyone who has dependents who rely on them for income or caregiving |
Your loved ones’ financial future, your income and legacy |
If your parents, spouse, children, or others would face hardship if you died, life insurance can help provide income to your loved ones so they can maintain their lifestyle. |
|
|
Anyone who works |
Your income |
If you are prevented from working due to an injury or illness, disability income insurance can help safeguard your income so you can pay your bills, maintain your lifestyle and continue to save for important goals. |
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|
Health and asset protection |
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|
Everyone |
Your health |
In addition to providing preventative and routine health care, health insurance can protect you from significant financial hardship due to a major medical event. |
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Anyone who is concerned about whether the high costs of long-term care could exhaust their assets later in life, or create hardship for their loved ones |
Your assets, lifestyle, family and legacy |
As health care costs continue to rise, long-term care insurance can help you pay for those expenses while protecting your assets and the legacy you hope to leave behind to loved ones. |
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|
Property and casualty protection |
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Anyone who owns an automobile |
Your automobile and assets |
Auto insurance can protect against property damage — to your car, to another driver's car — and any liability due to injury. |
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Anyone who owns a home or homes |
Your home and belongings |
Homeowners insurance can protect against property damage to your home and belongings and any liability due to injury. |
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Anyone who rents their home |
Your belongings |
Renter’s insurance helps you replace your belongings if stolen or damaged; and any liability due to injury and property damage. |
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Anyone who has substantial assets or wants an extra layer of liability protection beyond what their property and casualty insurance covers |
Your net worth |
Also known as excess liability insurance, it supplements other policies you have and will kick in when the liability coverage on those policies has been exhausted. Umbrella policies can also cover legal fees and damages resulting from libel, slander or defamation claims. |
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Advice spotlight
As your net worth grows, ensure your insurance coverage is keeping pace too. As you accumulate wealth, consider how additional liability insurance may keep you protected. For example, additional insurance can be used to help protect your art and jewelry as well as your retirement savings in the event of a lawsuit.
Learn more: Debunking 10 common myths about insurance
Supplement your employer insurance when needed
As part of a benefit package, employers often offer insurance policies at discounted rates to employees. And while these benefit plans often offer employer-provided life and disability income insurance, you may need a supplemental policy.
Policies that are tied to your employment usually mean you may lose coverage if you switch jobs. An external policy can help ensure you have consistent coverage through life and health changes.
Regularly review your coverage
Regularly evaluating your insurance coverage helps to ensure it’s keeping pace with your life and lifestyle. Plan to review and potentially adjust coverage after any major events such as a marriage, divorce, birth of a child, job change or the purchase of a new home. To ensure you’re not underinsured or paying for coverage you no longer need, consider assessing your policies at least once a year.
Helping you to protect what matters most
Your Ameriprise advisor can regularly review your coverage and recommend insurance solutions to help protect what matters most to you from unexpected financial events.
When you’re ready to reach out to an Ameriprise financial advisor for a complimentary initial consultation, consider bringing these questions to your meeting.
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