Episode 11 | Understanding Insurance Products
0:00:02.9 Speaker 1: Welcome to Your Wealth Journey podcast, powered by Bradford Financial Center, where we'll always share how small changes equal big results, because your wealth journey is our focus.
0:00:14.4 Shallon Weis: Hey there, finance enthusiasts. Welcome back to another exciting episode of Your Wealth Journey podcast with your favorite financial planner, Shallon Weis. I'm flying solo today, but Jim will be with us next time. I'm feeling fabulous today and ready to dive into the world of insurance and make it fun and easy to understand for our amazing listeners. Insurance might seem like a daunting topic, but fear not folks, I'm here to break it down and sprinkle it in with a dose of laughter. So grab a snack, sit back, and let's demystify those insurance products.
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0:00:48.5 SW: Let's jump right in with our first insurance product. Tip number one, the ever popular Auto Insurance. Now, have you ever felt like your car has a secret life of its own? Like when it mysteriously eats all of your loose change and snacks? But fear not folks, Auto Insurance is here to save the day or rather save your wallet from unexpected expenses.
0:01:09.4 SW: Auto insurance helps protect you from the financial fallout of accidents, theft, or damage to your vehicle. Most auto insurance policies contain three major parts. That's liability insurance for a bodily injury, liability insurance for property damage and uninsured or underinsured motorist coverage. But did you know that the average cost of full auto insurance coverage in Iowa is about $1,400 per car? And Iowa actually ranks as one of the least expensive states for state minimum car insurance? So hopefully you never have to file a claim if you're lucky, but it's always important to understand what is considered when auto insurance companies determine your premiums. Age is a big factor. You know, the younger you are, the more risky you are considered. But other cost factors include your driving record, your driving history, your vehicles make and model, and the coverage or deductible choices that you make. And also where you live.
0:02:01.8 SW: Remember, those Iowans are paying less. And statistics show people from Michigan and Florida pay the most. But now let's move on to learning about the second important insurance product, and that's health insurance. We all know that staying healthy is important, but sometimes life throws us a curve ball. Oh, life and its curve balls. You know, health insurance is like having a trusty shield that protects you from those unexpected medical expenses. It's like having a super hero nurse who makes sure you're taken care of without breaking the bank. And remember, folks, open enrollment is your chance to choose the best health insurance plan for you. And open enrollment is usually from November to the end of December. And it lets you shop for health insurance plans that best fit you and your health needs. Boy, there sure are a lot of options with health insurance. And some important considerations to weigh as you choose the one that's right for you, even if you have an employer-sponsored plan.
0:02:54.5 SW: So we talked about this in our last episode on tax planning and savings, and health insurance offers a hidden tax-free saving option in an HSA, otherwise known as a health savings account. And that is a smart way to save for longer term needs like Medicare premiums or long-term care. Now, I encourage folks to go back and listen to the last podcast to learn more about the HSA's value. And if you need help understanding the coverage and products, just please reach out. You know, we have teams that can point you in the right direction for your health insurance needs. But now let's move on to tip number three, the mysterious world of life insurance. You know, have you ever felt like your life is never ending rollercoaster? For sure, life can be unpredictable, but life insurance is like having a safety net for your loved ones.
0:03:38.7 SW: It's like having a guardian angel who ensures your family's financial well-being even when you're not around. And it sounds silly, but it's a beautiful way to look at life insurance because it gives you peace of mind knowing that your loved ones will be taken care of in case of the unexpected. You know what? Guardian angel, I love that visual. And now onto our fourth insurance product, homeowner's insurance. Have you ever felt like your home has a mind of its own? Just like your car?
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0:04:05.8 SW: You know, homeowner's insurance is like having a fortress of protection for your castle. It shields you from the financial havoc that can come from things like fires, theft, or even natural disasters. It's like having a superhero contractor who rebuilds your home with a snap of their fingers. Now, an important piece of that homeowner's policy is whether to opt for replacement cost value or actual cost value. And they are distinctively different.
0:04:31.0 SW: So let's explore what makes them unique. Your property and belongings under replacement cost value or RCV is the amount it takes to replace your property or belongings without any deduction for depreciation. It's likely going to be higher, but it's worth considering if an actual event occurs and you really need that roof replaced to the standards that you're used to. Actual cost value or ACV means the replacement cost minus depreciation. So a 15-year-old sectional isn't going to pay out much if you're replacing it at actual cost. It probably won't be enough to even buy a recliner. So you're wise to consider what kinds of standards you need to live by when you review these different policies. And too many people don't pay attention to that until they're sitting on the floor rather than their sectional. And when you've experienced damage, you want to be sure that you're well covered.
0:05:23.0 SW: So now let's move on to our fifth and final insurance product. And it's one that's often overlooked, but it's also important. That's disability insurance. No one ever wants to consider the curve balls of life, but disability insurance is like having a safety net for those exact moments when you're unable to work due to an illness or injury. It's like having a superhero financial planner who swoops in and protects your income when you can't. I really love that. And now before we wrap up, we want to leave our listeners with one important message. When it comes to insurance, don't be afraid to ask questions. Read the fine print and shop around for the best coverage that suits your needs. If you need an ally on your side, reach out to Bradford. We can help you understand your needs and get you insured properly. And that wraps up our fun-filled journey through the world of insurance. Remember folks, insurance is your financial superhero protecting you from the unexpected and giving you peace of mind. So until next time, embrace your inner superhero and make those insurance choices with confidence.
0:06:27.7 S1: In our last five minutes, we'll bring listeners a roundup of five smart ideas they can apply to their own wealth journeys. So let's get started with this episode's five and five.
0:06:38.0 SW: Welcome back to Your Wealth Journey podcast. I'm Shallon Weis, and today I have an exciting five and five segment for you. I'll be discussing five common insurance mistakes, and sharing Bradford Financial Center tips on how to avoid making them. So let's dive right in. Mistake number one, not reviewing your insurance coverage frequently. Many people make the mistake of buying insurance and forgetting about it, but life changes and so do your insurance needs. So you need to take time to review your policies annually or whenever you experience a significant life event such as getting married, having a child, or buying a new home. By doing this, you can ensure that your coverage aligns with your current circumstances. And mistake number two, under insuring yourself. It's crucial to have adequate coverage to protect yourself and your loved ones. Don't make the mistake of skimping on insurance just to save a few bucks.
0:07:30.0 SW: Consider your financial obligations, such as mortgage payments, debts, and future expenses. Work with a trusted insurance agent like the experts at Bradford Financial Center, who could assess your needs and recommend the right coverage for you. So that leads me to mistake number three, relying solely on employer-provided insurance. So while employer-provided insurance is a great benefit, it may not be sufficient to cover all of your needs. So it's essential to evaluate whether the coverage offered by your employer is enough to protect you and your family. Supplemental policies such as life, disability, or long-term care insurance may be necessary to fill any gaps. So don't assume that your employer's plan has you fully covered. Mistake number four, not understanding your policy details. So insurance policies can be complex, filled with fine print and jargon. Don't make the mistake of purchasing a policy without fully understanding what it covers and what it doesn't.
0:08:25.9 SW: Take the time to read through the policy documents carefully and if you have any questions, don't hesitate to reach out to your insurance agent or financial planner. So being informed is key to making sound decisions. And finally, mistake number five, neglecting to shop around for better rates. Insurance premiums can vary significantly between providers. By not shopping around, you could be missing out on substantial savings. Regularly compare quotes from multiple insurance companies to ensure that you're getting the best deal. Remember, the cheapest option isn't always the best. Consider the coverage, reputation, and customer service of the insurance company as well. So to recap, the five insurance mistakes to avoid are, not reviewing your coverage regularly under insuring yourself, relying solely on employer-provided insurance, not understanding your policy details and neglecting to shop around for better rates. And remember, our experts at Bradford Financial Center are here to help you navigate the world of insurance. Reach out to us for personalized guidance and advice tailored to your specific needs.
0:09:30.1 SW: Well, that wraps up our five and five segment for today. And we hope you found these tips valuable and that they'll help you avoid common insurance mistakes. So thanks for listening today to Your Wealth Journey podcast powered by Bradford Financial Center. Be sure to subscribe to our show, so you never miss an episode. And tune in next time when we explore how to financially prepare for the life stages ahead.
0:09:54.2 S1: Thank you for tuning into Your Wealth Journey podcast, powered by Bradford Financial Center. Be sure to tune into our next episode where we'll continue to explore the smart financial strategies you need to know. Securities are offered through United Planners Financial Services, member FINRA, member SIPC. Advisory Services are offered through Bradford Financial Center, a registered investment advisor. Insurance services are offered through Bradford Insurance. Tax and Accounting services are offered through Bradford Tax and Accounting Network. Bradford Financial Center, Bradford Insurance and Bradford Tax and Accounting Network are not affiliated with United Planners. Neither Bradford Financial Center nor United Planners provide tax or legal advice. This podcast is for general information and educational purposes only, and is not intended to be specific advice for any individual. Consult your financial professional regarding your personal situation. All investing involves risk, and there's no guarantee that any strategy will be successful.
