05 May 2016 with border

Dear Clients and Friends of Cornerstone:

When it comes to insurance coverage, the details matter.  The options you select for your life and property policies may have a long-term effect on your financial health.  This month’s newsletter reviews the six most common mistakes people make when electing insurance coverage.  If you haven’t done so recently, you may want to review your policies to make sure you are fully covered.

If you would like to refer back to any previous newsletters we have published, you can find them on our website. Please be sure to visit www.ccadvisors.com.

– Cornerstone Capital Advisors

6 Common Insurance Mistakes

6 common insurance mistakes
3-22-2016

No matter what type of insurance you are considering buying, taking the time to consider all the options can be the smartest decision.  Here are six common insurance mistakes that we often see.

1) No Umbrella Policy
You can get an extra $1,000,000 in liability coverage for about 50 cents per day.  This could be the difference between keeping your home or retirement savings, or losing it all.

2) Life Insurance Only for the Spouse that Works
It’s not ideal to only have life insurance on the spouse that works outside the home.  If something were to happen to the stay at home spouse, who would take care of all their responsibilities including children, carpools, cooking, cleaning, bill paying?  It takes money to hire someone for these duties.   Likewise, is there savings available for final expenses?

3) Self Insuring Valuables
Unless you lock up your valuables in a safe and NEVER bring them out, then you should add a rider to your homeowner policy.  The cost is only $10 per $1,000 value.

4) Carrying Insufficient Homeowner Insurance to Rebuild & Replace
There is a big difference between property value (market value) and reconstruction costs.   Remember, insurance companies rebuild homes, not buy/sell them.  You want to be able to replace and rebuild everything!

5) Relying Only on the Life Insurance Provided Through Work
The average person changes jobs over six times.  If you finally get that dream job later in your career, it might be expensive for you to get life insurance or your health may not allow you to qualify!

6) Carrying Low Bodily Injury Limits
Insurance is inexpensive compared to what it covers. With minimal coverage you can be putting all you have (now and in the future) at great risk.  In the state of Ohio, if you cause injury to others, your wages can be garnished up to 25% right off the top.