Many people are under insured, yet are aware of how devastating a loss of life, earning power or a valuable asset can be. SCM helps you become more involved in the process of acquiring and maintaining adequate insurance coverage.
Insurance products are becoming increasingly sophisticated and differentiated, therefore careful evaluation of both your needs and policies designed to meet your needs is essential. SCM has a familiarity with insurance products but relies on outside resources and professionals for expertise.
- Coverage Analysis– Gaps and duplication in your coverage should be identified and eliminated, limits of policy determined, dependent coverage assessed and costs compared. Areas of weakness include lack of review for a few years, no contingent plans for expensive illness, company-sponsored plan offering inadequate coverage, new products may better fit needs and resisting the habit of renewing without checking alternatives. Major areas of coverage include health, long-term health care, homeowners/renters, automobile, life, extended personal liability and professional liability/malpractice. Below is a calculator to help determine the costs of your health care insurance. Input the variables and calculate their overall costs. The calculator below analyzes the cost of long-term health care. Input the variables and see how much it costs on a annual basis. [ ]the calculator below figures out amount of life insurance needed to maintain a desired level of income.
- Industry Trends– Newly designed products are more cost-effective but have become more complex. Continuing competition results in price cutting to gain market share so it is important for SCM to keep abreast of product pricing. There are other channels of distribution other than the traditional agent agent including directly marketed, plans offered through associations and affinity groups or other financial institutions such as banks.
- Reducing Costs– SCM helps you lower your costs by suggesting to raise deductibles, earn discounts by purchasing from one source, increasing the waiting period on liability, watching for special discounts and paying annually rather than monthly. Other ways to save include not to under-insure, reducing coverage when children leave home and avoiding credit life insurance. Unused valuables can be stored more cheaply in a safe deposit box and if you have adequate net worth, you need not insure at all.
- Insurance Strategies– Coverage is dependent on your profile. A young single professional has little need for extensive coverage and can depend on their employer for most needs while a high income self-employed may need additional coverage for professional liability. Middle aged client with family obligation may have a greater need for term life insurance and long-term disability. Affluent retirees have little insurance needs other than homeowners.
