Introduction: What is insurance planning?
Insurance planning is to protect yourself, your family and loved ones, your home, your assets, or your business against unexpected events. The idea behind insurance is to get a group to contribute financially to a fund specifically designed to help individuals recover in the case of an unexpected loss. In this way, insurance eases financial burdens that can occur when disaster strikes.
Purposes of insurance planning
- Insurance planning
- Critical component of a comprehensive financial plan that includes evaluating risks and determining the proper insurance coverage to mitigate those risks
- Principal goal of insurance planning
- Identify and analyze risk factors in life
- Seek proper coverage to attain a peace of mind if disaster strikes
- The chances of recovering partly or fully are assured by having insurance
- Insurance is an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling
Appropriate plans for YOU
- Carrying insurance is crucial, but the most important aspect is carrying the appropriate type of insurance
- Each person has different insurance needs tied to his/her unique situation, age, health, family structure, economic status, possessions, assets, and many other factors
- There are several forms of insurance and there is no "one size fits all"
- This is why we need the insurance planning!
- Any major change in life requires an immediate review of insurance planning to make sure the protection remains adequate
For College Students and Parents: Health Insurance
- Every university offers health information and services
- Make sure to check with health services before making insurance decisions
- Students age 26 or under are normally (but not always) insured on their parents' insurance plans and are expected to remain insured during their college attendance
- Not all insurance plans are accepted equally
- It is the student's responsibility to verify all information with their perspective school, college, or university before attendance and make necessary changes to meet expectations
- Graduates and international students are also expected to carry health insurance
- Will either purchase insurance provided by the university or buy a plan privately
Alert to all Penn State Students:
https://studentaffairs.psu.edu/health-wellness/health-insurance Links to an external site.
You need to think of insurance planning as a fluid process, never stagnant or frozen in time. As your life changes, your insurance needs will have to change accordingly to remain protected. Your focus should be on acquiring enough insurance to match risk factors for you, your family, and your wealth. Here are the elements you need to consider as you embark on your insurance planning:
Now that you know why you need insurance planning, let's learn details about insurance planning.
Chapter 1. Are you carrying the right type of insurance?
Chapter 2. Insurance key terms and terminology
Chapter 3. How to maintain proper coverage but reduce insurance cost?
Chapter 4. How to avoid common and costly mistakes in insurance planning?
Chapter 5. How to forecast an insurance budget?
This was made possible in partnership with The Singleton Foundation for Financial Literacy and Entrepreneurship. This video and more videos like this can be found on Millionstories.com