Weekly Commentary for June 4, 2012
Infamous insurance giant Lloyd’s of London has issued some of the world’s most unusual insurance policies, including 1940s Hollywood pin-up Betty Grable’s famous legs at a reported $1 million each. Another policy written by Lloyd’s, according to “The People’s Almanac,” provided $100,000 if a famous photographer’s model married.
While you may not have legs like Betty Grable and your income may not hinge on a model’s love life, an important part of making financial decisions is evaluating your risks. For most of us, that includes the risk of losing our ability to earn income through illness or disability; the risk of losing property through disaster or theft; the risk of being held responsible for someone else’s loss; and the risk of significant health care expenses.
For your personal situation, however, those may not be the only risks to your financial security. If you have valuables in your home such as art, collectibles or a wine collection, you may need to purchase additional insurance to cover their destruction or theft. If you operate a business from your home, you may need additional insurance to cover the chance of a customer having an accident there. If you have a breed of dog considered overly large or potentially dangerous, you may want insurance to cover the risk the pet hurts someone. Depending on your relationship with said dog, you may want to purchase insurance to cover its health, life and disability as well.
We’re entering the crush of summer weddings, many of which will be held outdoors. In addition to insuring ceremonies against the vagaries of the weather, you can also insure against loss or damage to items like the bridal gown or rings, and against the failure of a vendor to provide services, including photographers and caterers. Similar coverage can be purchased for other large events, such as bar or bat mitzvahs or quinceaneras.
Your risks will change as your life changes. The photographer’s model did marry – but only after the policy had expired. What has changed in your life to add or remove risks to your financial well being? Call your Centennial, Colorado financial planner, Jordan Dechtman at 303-741-9772 or email him at Jordan@JordanDechtman.comfor a comprehensive review that includes identifying potential risks and evaluating how to protect against them.