Saturday Critical Actions – Imagine You Were the Executor and Drop Unnecessary Insurance Coverage

by | 12May2018 | Estate Planning, Insurance, Wills | 0 comments

Welcome to the Saturday Critical Actions. Each Saturday we take the weekly actions from Jonathan Clements‘ blog Humble Dollar and “militarize” them for you. Jonathan Clements was a longtime personal finance columnist for The Wall Street Journal, and he offers great advice at the best price you can get…free. Here are this week’s critical actions:

IMAGINE YOU WERE THE EXECUTOR for your own estate. What would make your job easier? You might consolidate financial accounts, shed illiquid assets like collectibles and investments in private businesses, draw up a letter of last instruction that details all assets and debts, and compile a comprehensive list of usernames and passwords.

DROP UNNECESSARY INSURANCE COVERAGE. If you no longer work or have more than enough saved for retirement, you can likely ditch your disability insurance. If the kids have left home or you have a sizable nest egg, you might drop your life insurance. If your car is old and doesn’t have much value, you might get rid of your auto policy’s comprehensive and collision coverage.

 

I think both of these actions are pretty self-explanatory. To the second one I would add that if you have enough money in your emergency fund you can probably increase the deductibles on your insurance policies. You should only use insurance policies to insure against risks you can’t afford to bear, and if you have 3-6 months of expenses in your emergency fund you probably can increase your deductibles. You can bear the risk of a small fender bender or minor damage to your home.

USAA
Personal Capital

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