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Personal Insurance


It’s the New Year and in 2013 more people are finding that it is necessary to plan ahead. With the economy still limping along one must analyze their current financial position now and spend some time accessing their short-term and long-term goals and needs. This will allow for a more comfortable and perhaps a more successful year—financially speaking—than you may have seen since the big economic crisis.
Financially savvy individuals are budgeting, paying down debt, planning to save, investing, and most of all making sure that they are personally insured. Planning for even the short-term is difficult without considering the unknown risks that the future can hold. Without obtaining personal insurance, the unknown has the power to potentially destroy your financial stability.
During the financial planning process six main areas are considered. These areas are: Your current financial position, protection against unexpected loss, tax planning, life and investment goals, retirement planning, and estate planning. By assessing your current situation and understanding your goals, you or a professional can take a look at this analysis and determine how long it will take you to reach your goals and what you will need to do to get there. When you calculate your current financial position, or net worth, you make a list of your assets and your liabilities; you subtract what you owe from your assets or what you own. This is a necessary first step in moving forward with a financial plan.
This plan will take regular monitoring and reevaluation. Execution of this financial plan often requires discipline, responsibility and perseverance. Reports that show where your money came from, where it went, and where it is now will help keep you on track or at least show you exactly where things went wrong. Different types of financial statements include balance sheets, income statements and cash flow statements. Many people look to assistance from the industry’s professionals such as: accountants, financial planners, investment advisers, and lawyers to manage their financial planning. The most significant aspect of what the financial planner will do is that he will consider all of your questions, doubts, gather information and advice as it effects and is affected by the entire situation of the your life and financial decisions.
The Financial Planning Board states that risk management is one of the key areas to focus on in personal financial planning. Personal insurance is the number one way to protect you and your household from unforeseen risks. The types of risks are narrowed down to: health, property, death, liability, disability, and long-term care.
Insurance offers a form of risk management by offering the insurer financial coverage during times of unexpected loss for the exchange of a certain amount, which is usually made monthly. You are initially charged what is called a premium and that amount depends on the amount of insurance you sign for. An insurance policy or contract is then given to the insured stating the conditions and circumstances for which the promised financial coverage will take place.
By planning ahead you will know if you are financially secure and if you can afford your everyday expenses, pay off your debt, and still plan for the future.  Providing financial security for you or your family is one of the most rewarding things you can do.
Jeff Mathis is a personal insurance expert. His aim is to guide you through the minefield and ensure you secure the best deal. Visit InsuranceTown.com for more information

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