While growing your career, building wealth, supporting your family, your attention is often focused on earning more, saving consistently, and investing wisely. Growth is important, but having a clear plan to protect your wealth is just as paramount. Many individuals think of insurance as a necessary expense or something to "deal with later."
From a wealth advisor’s perspective, I can tell you this: insurance is not about financial gain, it’s about safeguarding your assets and income and providing for the people who depend on you. Think of it as the financial equivalent of a helmet, seatbelt, or handrail. You hope you never need it, but when you do, you’re grateful it’s in place.
Insurance Is Risk Management
At its core, insurance is a risk management tool. It’s a strategic part of your financial plan that shields you from setbacks that could derail your financial security. Whether it’s life insurance to protect your family, disability insurance to protect your income, or liability coverage to protect your assets, the goal is to make sure that one unexpected event doesn’t undo years of hard work.
If your ability to earn an income is one of your most valuable assets, ask yourself: is it protected? What would happen if you were unable to work due to an injury or illness? Would your loved ones be financially secure if something happened to you? These are uncomfortable questions, but they’re exactly the kind that thoughtful financial planning should address.
Insurance is already a major line item in most household budgets — U.S. households spend an average of $5,423 each year on health, auto, and home insurance.1 That level of investment underscores just how important protection is to the typical American family. The key is ensuring that money is being spent wisely, coupled with coverage that aligns with your goals and risks.
Knowledge Is Power
Insurance often feels overwhelming or confusing, full of jargon, fine print, and choices that seem hard to compare; this is why education is key. A conversation with a trusted advisor or benefits counselor can go a long way in helping you understand what coverage you need and which policies might not serve your goals.
If you're employed, start by reviewing what benefits are already available to you. Many employers offer life and disability insurance as part of their benefits package. Others, however, may provide access to additional coverage options at competitive group rates. Knowing when your open enrollment period occurs and what decisions you need to make during that window is a crucial step toward building your financial safety net.
I recently assisted a client during her open enrollment stage. She had been paying into a stale coverage plan that no longer aligned with her needs. Together, we were able to secure deeper coverage that is more tailored to her current needs while simultaneously identifying a way for her to increase her bi-weekly paycheck. The excess cash flow is now working to support other priorities incorporated into her financial plan!
In addition to employer-sponsored coverage, it’s important to consider public resources like Social Security, Medicare, and survivor benefits. These programs can complement private insurance and offer another layer of financial stability, especially during major life transitions.
For a helpful guide and information about different types of policies and coverage, view our Insurance Policies Checklist here.
Keep Your Plan Current
Just like your investment or retirement strategy, your insurance plan shouldn’t stay static. Your insurance needs to change as your life evolves. Getting married, having children, making a home purchase or a career shift—all of these are milestones that bring new financial responsibilities that may require you to adjust your coverage.
Make it a habit to review your policies every couple of years or whenever there’s a major change in your life. Ensure your beneficiaries are current and always list both primary and secondary contacts. Despite being the simplest and most cost-effective action item, this estate planning step is commonly overlooked.
Finally, it is vital to understand how insurers assess risk. Your credit score, for example, can impact your premiums. Keeping a strong financial profile not only helps with borrowing and investing but can also lead to better insurance rates and options.
You’ve worked hard to get to where you are, and, in many ways, you’re just getting started. Insurance is not about assuming the worst. It’s about making sure that everything you have worked so hard for is properly safeguarded, even when life throws you a curveball.
Don’t wait until something happens to take action. Now is the perfect time to put together a protection plan that matches your goals, supports the people you care about, and gives
you peace of mind. The Curi RMB Capital team is here to help you think through your options and navigate finding the coverage that fits your needs.
1. Davis, M. (2024b, January 10). States that pay the most — and least — on insurance. ValuePenguin. https://www.valuepenguin.com/insurance-costs-income-study
The opinions and analyses expressed in this presentation are based on Curi RMB Capital, LLC’s (“Curi RMB Capital”) research and professional experience are expressed as of the date of this presentation. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future performance, nor is it intended to speak to any future time periods. Curi RMB Capital makes no warranty or representation, express or implied, nor does Curi RMB Capital accept any liability, with respect to the information and data set forth herein, and Curi RMB Capital specifically disclaims any duty to update any of the information and data contained in this presentation. The information and data in this presentation does not constitute legal, tax, accounting, investment or other professional advice.
The content contained herein was generated by Curi RMB Capital with the assistance of an AI-based system to augment the effort.
