I was traveling to work and heard on the radio that the reason for the bumper to bumper traffic on 287 was a fatal auto accident where a man was killed. I can’t count the number of times I have heard similar reports on my morning commute. The traffic reporter talked about the accident with the same tone and cadence he used reporting the time it would take to get through the Holland Tunnel to New York City. It was another day traveling in New Jersey, however this morning the story just grabbed by attention.
I’m certain when this man left his house he kissed his wife and kids goodbye not knowing that this was his last goodbye. He was on his way to work just like me and probably didn’t give a thought about what he was going to face. You may have heard the phrase “Your life can change in just one moment.” and this man’s did. But it also changed for his family. What is going to happen to them?
After saving money for many years my wife and I bought our first home. I love to joke around saying that now I have a part of the “American Dream”…a mortgage payment. I spent a lot of money fixing and upgrading the house. This is now the place I call home. It’s where I lay my head to sleep; it’s where my children are going to grow up. What happens if a natural event like a hurricane comes and destroys this home and all that I own is gone?
I witnessed my son being born which was a miracle; because our doctors told us we had the slimmest of chances getting pregnant even with modern technology. Now that he is here, what do I need to do to protect his financial future?
These life changing events can be financially supported or protected by insurance. Sure there may be government or bank requirements for you to buy an insurance policy on your car or home, but that should not be the sole reason driving your need for financial protection.
If you are concerned about protecting that which is most valuable to you then buying an auto policy, homeowner’s policy, personal umbrella policy, renter’s policy, or life insurance policy becomes a line of defense in case the unexpected happens to you.
I don’t know if the man who died in the car accident, mentioned earlier was at fault, but if he was, his wife would be facing a large lawsuit from the people he hurt. An auto policy combined with a personal umbrella policy could offer her financial protection from the lawsuits. When accidents are big it’s virtually guaranteed to result in someone being sued.
With my home I had to make sure that I provided adequate coverage for my house and personal belongings; it’s my largest asset. The bank required that I carry enough to cover the loan, but the value to rebuild the house was much larger. I couldn’t afford to pay the difference out of my own pocket. Especially as my loan value decreases and the cost to replace my house increases in the years ahead.
With the birth of my son I had to make sure I had life insurance in place so in case my life is cut short he and my wife have adequate funds to live on afterwards.
There are many stories that explain why one should buy insurance, but the bottom line is insurance is there to protect you when risk of financial loss is the greatest. No one can predict the future. We may have an idea of what we want to do in life but accidents happen. The routine and pace of life can change in a moment.
What we pride ourselves on at Rue Insurance is helping our clients find out what their greatest financial risk is and working out a plan to pay for that (buying an insurance policy) or talking about ways to avoid or minimize their exposure (Personal Risk Management)
The way we approach insurance is not something you are going to find on a website by clicking a bunch of buttons. We want to engage in a conversation that empowers individuals to be ready for the future.
In the weeks and months ahead you will read stories in this blog about insurance and other topics of risk management. You can also join the conversation on our Facebook or LinkedIn pages.
If you want to talk to us directly, give us a call at 609-586-7474 or click here to start a one-on-one conversation to answer that question of: Why do I need insurance?
Scott Harrigan, CIC, CRM
