When you
think about illness, injuries, accidents, storms, etc. we are not always in
control. Think about aging. Now that’ll
put things into perspective when you think you’re in control. Take a look at
the following statistics referring to the odds that you’ll need to be covered
for a loss:
|
Type of
Loss
|
Odds
|
Prevalence
in the Market
|
|
Homeowners
|
1/88
|
Carried
on Most Homes (Required by Lenders)
|
|
Auto
|
1/26
|
Carried
on almost All Vehicles (State Law)
|
|
Major
Medical
|
1/12
|
Very
Prevalent/ More so in 2014 (PPACA)
|
|
Long-Term
Disability
|
1/3
|
Much
Less Prevalent (Mostly Employer Provided)
|
|
Need of Long-Term
Care
|
1/2
|
Very Few
people consider coverage
|
After
reviewing the odds, it’s surprising that we typically don’t think about
covering the issues that deliver the highest odds of potential loss. Or, perhaps we do think about it, but, as
humans, we think, “I’ll worry about that later.” Unfortunately, later always comes with a
cost.
While we are
typically required to carry insurance on our largest assets, and agree with the
logic to do so, we seldom think about insuring our future productivity,
especially if our ability to produce was taken away. It’s like insuring the “Golden Eggs” and
neglecting to insure the “Goose” that lays them!
Additionally,
we know that someday we’ll be old and potentially incapable of caring for
ourselves without assistance. It’s ok if
you’re independently wealthy and can afford to pay for care in your old age,
although, after years of wealth accumulation, wouldn’t it be nice to preserve
that wealth for more productive purposes on behalf of your legacy? Without wealth to see you through the later
years, who will you count on for assistance?
The government will help, at least for now, and only after you’ve
exhausted all other assets prior to any government assistance delivered from an
approved program and facility (Ugggh!).
When
gambling, sooner or later the casino wins.
The longer you gamble, the higher the odds that the house will take your
money. The game of life works in a similar manner
for those who do not prepare for the future.
For those who wait too long, someone else will take your money.
