Here are the major points to consider as you review your insurance knowledge:
- Smart shopping: Do you know when it makes sense to buy insurance through fee-for-service advisors and companies that sell directly to the public (bypassing agents) — and when it doesn't? Do you shop around for the best price on your insurance policies at least every couple of years? Do you know whether your insurance companies have good track records when it comes to paying claims and keeping customers satisfied?
- Coverage understanding: Do you understand the individual coverages, protection types, and amounts of each insurance policy you have? Does your current insurance protection make sense given your current personal and financial situation (as opposed to your situation when you bought the policies)?
- Income protection: If you wouldn't be able to make it financially without your employment income, do you have adequate long-term disability insurance coverage? If you have family members who are dependent on your continued working income, do you have adequate life-insurance coverage to replace your income should you die?
- Liability protection: Do you carry enough liability insurance on your home, car (including umbrella/excess liability), and business to protect all your assets?