Book Review: Protect Your Lifestyle by Meaghan Dowd
Insurance costs are on the rise, we are all feeling the impact on our wallets. The average American already spends over 5.3% of income on insurance premiums, 60% of that is for auto and home premiums. What can we do? Do we have any control?
As a CFP® practitioner, I spend a few hours per month on continuing education. Recently, I got an invitation for a webinar titled “Incorporating Property & Casualty into The Holistic Financial Plan.” Maybe there would be some nuggets I could share with clients to help navigate the changing insurance landscape so I signed up!
The webinar was fantastic! Meaghan Dowd was the presenter, and the best part is that I learned she wrote a book “Protect Your Lifestyle” that is a perfect resource for anyone looking to make empowered, educated and effective personal insurance decisions.
In “Protect Your Lifestyle” by Meaghan Dowd you learn how to select home, auto and liability insurance that are appropriate for your unique lifestyle. The basics of each type of insurance are covered, but the true nuggets are in the hidden risk sections throughout the book. Meaghan uses examples to illustrate how the right insurance can save you from having to use your savings and compromising your financial plan in the event something unexpected happens in life.
Here are my favorite takeaways from the book:
- Only file claims when necessary because your claims record is like your credit report. The fewer marks on your record the more options you will have.
- Homeowners Insurance: It is very important that if your home is owned by an LLC or trust that your homeowner’s policy lists the individual owners as well as the LLC, trust, etc. as additional named insured on the policy. Insurance coverage may be denied if your home is titled in your trust, but it is not listed as an insured party on your policy. Go check your policy right now!
- Auto Insurance: Most people think that if they have an accident that health insurance will cover medical expenses. But the reality is when an injured person goes to a doctor or hospital, the first question is “How did you get injured?” If the cause of the injury was an auto accident, the liability/responsibility of the medical bills shifts to the driver. This is one of the most important reasons to have good coverage.
- Auto Insurance: The higher your deductible the lower your auto insurance premium. File only necessary auto claims to stay insurable and keep rates down. I see policies all the time with low deductibles, but the policy holder would never file a small claim. Don’t pay premiums for coverage you will not use.
- Personal Liability Insurance: If you are thinking “I live a simple life, I do not need too much liability insurance.” Did you know your wages can be garnished if you cause a bad car accident and your auto policy liability coverage is not enough to cover damages? So even if you don’t have too much in savings, it makes sense to have appropriate liability protection.
This book is a guide to living the life you desire while protecting everything you love and have worked for. Meaghan will show you where you definitely should not cut corners, but she also shares ways to reduce insurance premiums.
As insurance rates rise, now is a great time to get educated on how to make sure you are paying for the appropriate coverage. I am more energized than ever about protecting assets after reading this book. I too have fallen prey to “cheap insurance” which equals minimal coverage. The reality is paying premiums to protect my assets is a smart financial decision equal to saving for retirement, investing, etc.
If you decide to read “Protect Your Lifestyle” by Meaghan Dowd please let me know…I would really like to hear about your favorite takeaways!
