Hi, today I just wanted to just briefly talk about a protection case study. You know, those fall from ladders, the missing that last step on the stairs, the dive into the swimming pool that came up a little bit short, car accidents happen all the time to someone and they’re never scheduled and they’re not anticipated events. Yet I want to really encourage all of us to provide for ourselves and our loved ones for those unscheduled events that occur to us and our loved ones.
And if you think about that, you know, as we drive around and see a car accident and I catch myself in the car all the time saying, well, now that’s a really bad way to start a Tuesday or it’s a really bad way to start a weekend. And they’re crumpled up and you just know this is going to cost money. Let’s talk about the layers of protection set forth in your life. And I know you say, she’s going to talk about insurance, insurance, insurance.
And there are layers of protection for you and your assets that insurance comes in and steps forward in those moments where you have a high probability of a lot of loss. And so let’s talk about that.
So if you’re in that car accident and you need medical assistance, that’s your health insurance bill. And health insurance is there to protect you from the very catastrophic and not so catastrophic cause of having to see someone in the emergency room and deductibles and maybe a cast, maybe a shot for Demerol, maybe an X-ray. And that may not be a very long visit. You didn’t have a very serious injury, but that could easily be several thousand dollars. Health insurance is that doctor and prescription coverage. And both of those are very expensive and health insurance at all times for all family members is critical.
Auto insurance. So let’s talk about that. They have limits. They don’t pay unlimited amounts of money for the accident that you’ve caused or God forbid you’re hit by someone who’s not insured. So make sure that your policy has uninsured insurance coverage, meaning that if the person who hits you is uninsured or takes off and you can’t identify the person, it’s a hit and run. That’s your uninsured motorist coverage. And the insurance company usually determines a limit as to the amount of money they’ll spend per person and the amount of money they’ll spend her accident and those limits once met, the insurance company has met their obligation.
Now, if you’re the cause of the accident and someone that you’ve hurt or damaged, you’ve damaged their car, you’ve damaged them, we find that there’s an awful lot of people who have been hit in cars, who have had to take time to heal and get better and that lack of ability to go to work, they’re coming back and actually making claim against the person who hit them because they didn’t have disability insurance to cover their wages because they weren’t at work because they were injured by your car accident.
So these claims are getting larger and larger. So how do you protect? Make sure your auto insurance is at the maximum levels it will provide you at that particular insurance company. It’s important that you put the insurance company at the maximum possible coverage for you so that you’re not sacrificing your assets to pay off that creditor, should it be a pretty bad accident, so you’re not having to sacrifice your income. Most court systems will garnish what’s called garnish, meaning that they’ll award 25%, up to 25 % of your income to the creditor if your insurance company isn’t enough, if your assets that they can take from you isn’t enough. So be careful with that. Make sure you put the insurance company on the hook for that.
The secondary layer of insurance around your assets and your garnishment of wages is an umbrella contract. Umbrella steps in between where your car insurance stops off and where your personal assets are stepping in. And umbrella says, whoa, whoa, whoa, before you take this person’s assets and before you garnish their wages, can this layer of insurance help to pay off the creditor so that you can move on with your life and they can move on with theirs?
Disability insurance, I mentioned that a half a second ago. Disability insurance is really that coverage over your income, meaning your salary. You went to work, you earned $100,000 today, you’re sick or injured, then you can’t go to work for 18 months, let’s say, then disability insurance is a design to cover your paycheck, all or some of your paycheck, depending on the policy, depending on how sick or injured you are.
And you want that coverage to cover you, not just because you had a work accident, but because you were mowing the lawn and you hurt yourself mowing the lawn on Saturday. Had nothing to do with your occupation or your work, but you’re now injured and you can’t go to work. So that’s what disability insurance is, is it comes in and supplements, covers, provides an income to you that you’re no longer able to earn because you are getting better, you’re healing, you’re recovering.
Finally, in a state plan, what if the car accident or the accident is now at a point where you’re passing away? Now in a state plan, a will, a trust, a medical directive, a power of attorney, these documents work to support you, your decisions, have someone advocate for you while you’re getting better, pay your bills, et cetera. And finally, life insurance. Life insurance is that amount of money that’s paid to somebody to replace you if that car accident or injury took you out.
Life insurance pays income, it pays DOF debts, and it creates an estate. So if you’re busy at work creating wealth for your family and you die too soon and didn’t fulfill on your promise to the family to build wealth, you came up short, that’s what life insurance does. It fills in the gap that you didn’t get to save for because you didn’t get to live long enough. Thanks so much for tuning in today. If you have any questions, call our team. We’re happy to help.
Video Summary:
Life’s biggest accidents are never scheduled—and rarely anticipated. A car crash, a bad fall, or even an injury from weekend yard work can change everything in an instant. That’s why having the right protection in place is critical for your financial security.
Eileen Rice, RICP®, outlines five key layers of protection: health insurance, to cover both minor and catastrophic medical needs; auto insurance with uninsured motorist coverage, to safeguard against at-fault accidents or hit-and-runs; an umbrella policy, to protect personal assets when claims exceed auto coverage limits; disability insurance, to replace lost income if injury keeps you from working; and estate planning with life insurance, to ensure your family’s financial future if you pass away unexpectedly.
These layers work together to keep your income, assets, and loved ones safe—no matter what life throws your way. Review your coverage now, before the unexpected happens.
This material is intended for general public use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Tom is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Florida Veterinary Advisors and The Next Step Planning Group are not an affiliate or subsidiary of PAS or Guardian. California Insurance License #0K80141. AR Insurance License #15823672. Florida Veterinary Advisors is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. The individuals associated with Florida Veterinary Advisors do not maintain specialized licenses or qualifications for the financial services provided to veterinary professionals. 7989827.1 Exp 5/27