4 Pillars of Protection – Products To Consider In Your 4 Pillars of Protection Insurance Portfolio

With a wide range of insurance products available today it is important to understand the differences and benefits to you and your specific situation. A basic portfolio for any person but more specifically for a self-employed person should encompass the 4 following aspects.

Disability

By far one of the most important products for anyone, specifically self-employed people is disability insurance. We all work to handle our weekly and monthly expenses in addition to providing the “little extras” if we have anything left over. Employees of a company for the most part will have benefits provided to them however, being self-employed our livelihood depends on our ability to go to work and earn an income. In the event your ability to work is suddenly removed, disability insurance could be the key to your survival. Your income is the fuel for everything. Remove that and over time all else will fall apart.

Life Insurance

Life insurance has so many uses that it could essentially apply to everyone. However, the general consensus of life insurance is that it is suitable only for people with a family. This couldn’t be further from the truth. Life insurance can be used to protect a debt over a period of time, provide for your survivors after final expenses, or give to a charity upon your death. For people who would like the idea of having a benefit as well as a savings or investment vehicle, life insurance could also be an option for you. Life insurance must be carefully evaluated to ensure that it is structured properly based on your specific situation.

Critical Illness

In my experience I have seen this product misunderstood the most. The important thing to understand about CI is that it will pay a lump sum benefit in the event you’re diagnosed with a “specific” covered illness. Most CI products will protect against heart attack, cancer, and stroke however, each policy will differ between companies for other covered illnesses beyond these. Do not make the mistake like most do in thinking that this operates like disability insurance. Yes, they are both living benefits but they provide protection in varying ways.

Investments

Within financial circles it is encouraged to have a minimum of 6 months of disposable “liquid” income saved. For most people this is a tremendous feat and some people often throw their hands up in the air and forfeit the idea that they too can have investments. Life insurance can be designed in such a way that not only do you have protection but also an accumulating asset. Outside of life insurance there are many ways to protect and grow your money. The concern for most people is having a large sum of money lying around to be able to invest. If you don’t have a large capital to start with always remember that it is better to start somewhere, even small if needed than to not start at all.

As an independent insurance advisor and income protection specialist for almost a decade, Ryan has been providing clients with customized personal insurance and financial solutions through disability, life, critical illness, long-term care, and other personal insurance products while providing strategies for hedging income and preserving wealth.

http://www.ryandforrester.com

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