Be Prepared Every Time
“Insurance is the only product that both the seller and the buyer hope is never actually used.”
Unknown
In July 2016, I had the absolute privilege to ride along with Officer Brandon Bryan of the Gainesville Police Department. Officer Bryan has been with the GPD for over a year and came from the Griffin, GA Police Department. I had the honor to spend over six hours in Officer Bryan’s patrol car with him. His passion and determination to protect our community was nothing short of inspiring.
I always try to obtain a nugget or two from most anyone with which I spend time. I was fortunate to obtain two nuggets from Officer Bryan that related to our business:
- “I just have to be prepared for the worst EVERY time.”
He said this multiple times in regard to all sorts of situations. He mentioned how he and his fellow Officers train constantly for almost any situation you can imagine. His training calendar was already full through February 2017. - “My job is mostly deterring crime.”
I had not thought about this much, but it made perfect sense after he said it. It also correlates perfectly with preparing for the worst.
“The problem with risk is that you don’t know that you’ve taken too much of it, until it’s too late.” E. Graham Holloway of The Capital Group uttered that simple and profound quote decades ago. It applies to so much in life and Officer Bryan repeatedly reminded me of this.
Often Warren and I see that clients have not prepared for the worst, especially when it comes to coverages for insurance like the following:
Life Insurance
Many times we will see new clients have taken out a level of insurance that is simply the maximum that they can receive from their place of employment. Rarely is this enough to cover outstanding debt, college expenses for the kids, and replacing future income lost. Unfortunately, there is no one size fits all to determine how much life insurance coverage to have. For some high income earners, some type of permanent policy may be appropriate for a small portion of their coverage needs. Our Family Security Training process helps our clients determine what the right amount and type of coverage they need.
For pre-retiree clients, often the need for coverage has greatly diminished due to assets they have accumulated, college expenses having been paid, and fewer years of income to replace. It is common for Warren and I to recommend lowering coverage for this type of client.
Disability Insurance
The probability of suffering a disabling incident is dramatically higher than suffering a premature death. In spite of this, we often find that new clients have no disability coverage at all or a bare minimum. Recently, I have had two close friends with serious health issues that prevented them from working for an extended time. This has resulted in a meaningful change in the family’s lifestyle due to not preparing for the worst.
Some clients overlook that they have access to supplemental long-term disability coverage through work. For self-employed individuals, they may have access to disability coverage through industry associations they belong to. If not, they will need to buy private coverage. If you haven’t checked your disability coverage recently, we would recommend that you do so promptly before open enrollment season begins.
Property and Casualty Insurance
Warren and I consult with our property and casualty advisors and remind people to have the proper coverages. One coverage we occasionally see people overlook is having an Umbrella Policy. This policy gives you extra liability protection from large judgements due to your negligence. Unfortunately, my family had to use Umbrella policy coverage several years ago due to a fluke event. This type of policy is very inexpensive for the coverage it provides.
I am certain in my time together with Officer Bryan that we deterred some crime. Warren and I don’t deter crime, but we do deter bad financial planning behavior. If I only had a nickel for the number of clients who have said to me “Warren stopped me from doing some really dumb things. Thank God!”
I also know that the late call that we received about a child custody issue could have been much worse. But Officer Bryan and his four associates prepared for that potentiality by arriving to the scene in five patrol cars – they prepared for the worst but fortunately got a great outcome. We can all learn a lot from these officers.
Thank you for the trust and confidence you have placed in us and giving us the opportunity to provide education to you on your way to building your wealth.
As always, thank you for the introduction of your friends and family that so many of you have made. We are honored to serve you! As a service to our clients, we are happy to act as a sounding board for your friends and family. If any of them should need a second opinion on their financial situation, introduce them to www.striblingwhalen.com or call us at 678-989-0048.
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Regards,
Warren D. Stribling, IV, CFP®
Principal
warren.stribling@striblingwhalen.com
Brian E. Whalen, CFP®, CIMA®
Principal
brian.whalen@striblingwhalen.com
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brian Whalen and Warren Stribling and not necessarily those of Raymond James. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.
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