Basic Insurance is Not Enough
Author: Simplistic Resolutions
Synopsis and Key Points:
Recent studies have shown that 75 percent of households have very little or no insurance to cover their basic needs.
Main DigestSimplistic Resolutions Announces Not Enough Insurance.
There is a growing problem around the country. The vast majority of our population is under-insured. Recent studies have shown that 3 in 4 households have very little or no insurance to cover their basic needs.
Most people only carry liability insurance on their vehicles and basic coverage on their homes.
If the average American home were to burn down we would find that most homeowners only have basic coverage. The problem with basic coverage is that it's very limited; it usually will not cover expensive jewelry, paintings, excessive lawsuits and disasters such as floods. Basic coverage will also account for depreciation, which will reduce the actual amount received by consumers. Consumers do not receive full replacement cost with basic coverage.
In addition, life insurance and disability insurance in many households are two of the most under used forms of protection.
For example, let's use one of my clients, "John Smith." I met John while participating in a trade show in Stamford, CT. John is 38 years old, he makes $65k per year, his wife is a homemaker, and they have two children, ages 2 and 5. John has $50,000 in group life insurance at work and told me that it's not in the family budget to buy any insurance. I found this hard to believe. I observed a late model BMW in the driveway and an expensive entertainment system in his family room. John also mentioned he has the "everything package" with the cable company.
John has made a major gaffe when it comes to protecting. If John dies, his wife and kids would only get $50,000, which is not even enough to cover 1 year of John's salary. John's wife would likely struggle to raise their kids, not have money for college, and have to move out of the family home. Furthermore, if John were to become disabled his disability would only cover about 60% of his salary, which would also be taxable. I could go on and on about John and the bad decisions he has made for his family by not having the proper amounts of insurance. There are no excuses for John. He failed to take action and get his family protected, he was educated on all of the different situations that could happen to his family and decided not to take action. I just hope that John could deal with the consequences if the unexpected happened!
Many American families make the same mistake.
Simplistic Resolutions wants to help make sure your family, business and assets are protected. At Simplistic Resolutions, our responsibility is to provide consumers with enough information about insurance to help them make informed decisions on how to protect their family, their ability to earn money, and their business if they have one. A protection analysis can be done at no charge by many insurance agencies including Simplistic Resolutions to ensure that your family, income earning ability, and business is protected.
Wake up America! Get Properly Insured!
Quotes are available at www.simplisticresolutions.com for all lines of coverage. Feel free to post your commits about this article on our blog located at simplisticresolutions.com/blog. Let us help you get the insurance you need at the price you can afford.
- 1 - Action Needed to Address Social Security Disability Insurance Finances : The National Academy of Social Insurance (2013/05/24)
- 2 - Disability Insurance Services Campaign: What Will You Say : Disability Insurance Services Inc. (2011/04/25)
- 3 - Critical Illness Insurance : Frank N. Darras (2009/10/28)
- 4 - Benefits of Travel Insurance : Greath Owen (2008/12/29)
- 5 - How to File a SSDI Claim : Allsup (2010/01/08)
- 6 - United States Senate Finance Committee to Investigate Long-Term Disability Insurance Claims : Disability Attorneys Dell & Schaefer (2010/09/24)
- 7 - Health Insurance Options for the Self Employed : Disabled World (2009/02/05)
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