Introduction: Welcome back to another episode of The Amber Stitt Show! In today's episode, we will be diving deep into the world of risk management and the concept of people insurance. We often focus on insuring our valuable possessions, but what about insuring our ability to earn income? Join us as we shed light on the importance of this often-overlooked aspect of financial planning.
Understanding the Impact: In today's society, many couples have both spouses working, with each contributing to the family finances. However, all too often, in an attempt to protect the higher earner's income, the potential risks faced by the lower earner are neglected. This oversight becomes evident when a loved one requires transportation to medical appointments or additional care at home, and the sole caregiver is unable to work full-time. Suddenly, the lack of insurance for the lower earning spouse becomes a significant hurdle to overcome.
Real-Life Examples: To illustrate the impact of inadequate people insurance, we are joined by special guest Anne Baker Ronn, a third-generation member of a reputable financial planning firm. Anne shares the story of a disabled man with brain tumors and his wife, who became his full-time caregiver. Both went from earning two high salaries to earning nothing. The sudden change meant a loss of income and the added burden of expensive medical care. The wife had to dedicate her time to accompany her husband to chemotherapy appointments and take care of him when he fell ill. This left her unable to continue working, further exacerbating their financial situation. The story serves as a stark reminder that people often overlook the impact on the other spouse when insuring only the higher earning individual.
A Framework for Peak Performance: Having firmly established the need for people insurance, we now turn our attention to a framework for peak performance. Our guest emphasizes the importance of being proactive instead of reactive when it comes to risk management. By planning ahead and putting appropriate steps in place, individuals and families can ensure a smoother recovery process in the face of unexpected events.
Resilience and Liability Insurance: One crucial aspect of people insurance is liability insurance. Anne highlights the role it plays in helping navigate difficult situations. It provides a safety net, offering financial protection if one's actions or circumstances result in harm to others. While often dismissed as an unnecessary expense, the importance of liability insurance cannot be overstated when faced with unexpected legal or medical complications.
Retirement Planning: In the midst of considering people insurance, it's also essential to address retirement planning. By factoring in provisions for potential disability or loss of income, individuals can protect their retirement savings from being depleted prematurely. Anne's expertise in financial planning and investment shines through as she reminds listeners to review their retirement plans in tandem with comprehensive people insurance coverage.
The Power of Disability Insurance: Anne powerfully emphasizes the significance of disability insurance in protecting one's ability to earn income. She shares the inspiring story of a man who became a paraplegic after a water skiing accident. Thanks to his disability policy's rehabilitation feature, he was able to receive rehab at home and gradually regain the use of 70% of his body over seven years. However, his group contract stopped paying him when he returned to work as a financial advisor, despite not earning an income. Luckily, his individual contract continued to provide ongoing income and covered the cost of his continuing rehabilitation. Today, he is a thriving entrepreneur who runs the Chicago Marathon every year. Disability insurance played an instrumental role in his recovery and eventual success.
Conclusion: As our episode comes to a close, we hope that the concept of people insurance has sparked a newfound awareness within you. Just as we insure our homes, cars, and jewelry, we must not neglect to protect our most valuable asset: our ability to earn income. Remember, disability can strike anyone, and the financial repercussions can be significant. Be proactive, review your benefits, consider customized products, and work with an independent broker to ensure you have comprehensive people insurance coverage in place.
Thank you for joining us on this informative episode of The Amber Stitt Show. We are dedicated to helping you improve your financial and personal lives and will continue to bring you valuable insights and habits to support you on your journey towards a happy and successful life. For more content and resources, visit Amber Stitt's website, www.AmberStitt.com.
Until next time, stay safe and insured!
Disclaimer: The information provided in this blog is for educational purposes only and should not be considered as financial or insurance advice. Consult with a professional financial advisor or insurance expert to tailor a plan suitable for your specific needs.
[00:02:47] Disability insurance: clients, success stories, and importance. [00:04:19] Insurance a cute goose to understand disability. [00:07:29] Overcoming disability with the help of insurance. [00:12:26] Key points on disability insurance for audience. [00:15:31] Get organized, review benefits, customize insurance.
How to find Ann?
You can reach her via email at firstname.lastname@example.org.
The AFP Group
602 Sawyer Street, Suite 120
Houston, Texas 77007