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Insurance Considerations As You Start Your Career

Norton Suda, CFP®, MSFP®, ChFC®, RICP®
Assistant Vice President, Wealth Advisor
[email protected]
(585) 419-0670 x41964

Having proper insurance coverage for those starting out in their careers can seem like a daunting proposition. From keeping up with student loan payments and the ever-increasing costs of everyday life, additional expenses are not always easy to take on. However, having adequate insurance coverage is an important part of reducing financial risk and one of the best ways to protect income and assets.

Life Insurance

Life insurance is one of the most important types of insurance to have to protect our loved ones. An unexpected death can bring about unexpected bills such as funeral expenses and debt burdens, but it also halts an important element of any financial plan: future income. For those that have loved ones that rely on them financially, having adequate life insurance coverage is essential to avoid a serious downgrade in financial means and lifestyle.

Oftentimes, some life insurance coverage is offered through employee benefit packages, so check with your HR department to find out how much, if any, coverage you might have and then find supplemental coverage to ensure you have the appropriate coverage.

There are many types of life insurance, a topic that is beyond the scope of this article, and working with a professional is one of the best ways to understand how much coverage is needed for your situation and what is the most cost-effective way of gaining that coverage.

Disability Insurance

A more common occurrence than premature death is becoming disabled, whether temporarily or permanently. According to the US Census Bureau, just under 1 out of 12 Americans under age 35 reports having a disability and that jumps to just under 1 out of 8 Americans for those between ages 35 and 64 (Census Bureau, 2021)1. Disabilities include not only physical but also long-term mental illnesses that can keep people out of work, sometimes indefinitely.

Many employee benefit packages include coverage for short term (usually considered less than six months) and/or long-term disabilities (usually considered six months or longer). If your employee benefits include disability coverage, it is important to understand what it covers, and more importantly what it does not cover, and try to find additional coverage if needed.

Property and Casualty Insurance

One of the more overlooked - but not less important – insurances you may need is property and casualty (P&C) which covers physical properties and if someone is hurt on or by your property, such as your house or car. As you start to build your savings and acquire assets, it is important to have those assets protected from both damage and liability. Car insurance is one of these P&C coverages that many of us are familiar with and protects the vehicle if it becomes damaged, as well as provides coverage if we injure someone else or their property while operating our vehicle.

Another P&C coverage is homeowner’s and renter’s insurance, both of which cover the residence (in the case of homeowner’s insurance) and the valuables of the residence in case of damage from fire, theft, and other threats. Umbrella insurance covers beyond the previously mentioned protections to provide coverage over and above what either homeowner’s or auto insurance will cover.

There are many factors to consider when shopping for P&C coverage. Consider working with a broker or noncommissioned professional to find the best and most appropriate coverage for yourself.

While it may seem like a burden to take on additional insurance premiums, now that you are building your savings and assets, it is important to make sure that what you have worked hard for is protected from damage and liability. Even the best financial situation can be turned on its head when unexpected and unplanned events occur. Reach out and talk with one of our experts at CNB Wealth Management to learn if the coverages you have are adequate and make the most sense for your situation.

Source: 1)

This material is provided for general information purposes only. Investments and insurance products are not FDIC insured, not bank deposits, not obligations of, or guaranteed by Canandaigua National Bank & Trust or any of its affiliates. Investments are subject to investment risks, including possible loss of principal amount invested. Past performance is not indicative of future investment results. Before making any investment decision, please consult your legal, tax or financial advisor. Investments and services may be offered through affiliate companies.