Protecting Your Most Valuable Asset
When you purchase a major appliance, do you get the extended warranty? Yes, because you know the appliance could be damaged, and it’s a big purchase. Did you know that warranty is another word for insurance?
What if you owned a machine that printed money, would you insure the machine? Of course you would, just like the goose that lays the golden eggs, you need the eggs. (especially at $8 a dozen)
Fun Fact: You are the Goose, and you can be damaged. You make the Money, so Accidents and Illness are real threats. Nothing is more important than your health. A good rule of thumb is to Lock in your Good Health for as long as your budget dictates. I don’t know what tomorrow has instore for me, do you know what will happen to you?
Your Most Valuable Asset: Your Health
I often say that your most important asset is your health. A few years ago, I suffered a stroke and was out of commission for a while. As a widower with a young child to care for, life changed drastically. I half-joked that I should have stood on a street corner with a sign that read: “Have child, need a maid—with benefits.”
Like an appliance warranty, most people recognize the importance of having medical insurance. If you’re over 65, Medicare helps cover healthcare costs. But what if your health takes a turn for the worse and recovery takes time? That’s where disability and life insurance come in—they ensure that you still get your golden eggs, even if the machine (your ability to work) slows down or stops working.
Locking in Your Good Health
Insurance companies won’t offer protection after an injury or serious illness. They assess risk using actuaries through a process called underwriting. This involves checking the Medical Information Bureau (MIB)—which functions like a credit report for your health—possibly requesting a physical exam, and reviewing your medical records. Based on these findings, they determine your eligibility and rates, which vary based on factors like age, gender, health, and the duration of the policy.
Many people who buy term life insurance are shocked when, after 10 or 20 years, they see how much renewal rates increase. This happens because you’re older, and since the insurer hasn’t evaluated your health for years, they reassess the risk. If you’re still in good health, you may qualify for a new policy at a lower rate than the renewal offer.
Do you have a term policy that’s over 10 years old? It might be time to extend your coverage. Some policies now last until age 121—you’re unlikely to outlive that! Even better, today’s policies offer living benefits, allowing you to access a significant portion of the death benefit while you’re still alive if you face a serious illness or injury. These benefits weren’t available a decade ago.
Have a Question?
Call 425-814-6378
Feel free to reach out to me with any questions. You will not speak to a machine, and I will return all my messages.
I’ve been helping people since 1993, and as a broker, I can answer your questions and compare options and choices. Share my name, I’m happy to help.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. If you would like to find more information about the Medicare program please visit the Official U.S. Government Site for People with Medicare located at http://www.medicare.gov
This is a proprietary website and is not associated, endorsed or authorized by the Social Security Administration, the Department of Health and Human Services or the Center for Medicare and Medicaid Services. This site contains decision-support content and information about Medicare, services related to Medicare and services for people with Medicare.
