How to Plan for the Unplanned

The recent fire at the Harrisburg Broad Street Market is a harsh reminder that life isn’t always fair. It’s a reminder that unexpected emergencies do happen. Events like this often make us question how we will proceed and highlights the reason that planning for unplanned events is required. With that in mind. let’s take a look at a few common myths surrounding contingency planning.

I bought insurance – everything’s okay!

Let’s be honest, insurance isn’t a fun topic. We all know a family member or friend who has paid insurance premiums for years and didn’t receive a payout whenever they needed it. That’s why it’s extremely important to dust off that insurance policy declaration so you can fully understand what your insurance policy covers and what your insurance policy doesn’t cover. Remember, the greater the coverage the greater the premium payout. Likewise, lower premium policies offer less protection. Balancing the correct coverage to premium cost is where an insurance agent can provide significant insight and value.

In the spirit of candor, I have absolutely no idea where my insurance declaration pages are. I cheat! Instead of trying to track down my insurance policies, I simply text my insurance agent to set up an annual insurance review. I share any major changes in my life and make prudent coverage adjustments as needed. For example, when I popped the question to Susie,

I called my agent and added an insurance policy to cover her engagement ring.

I

have a Will – my children are okay!

If you thought insurance wasn’t a fun topic, try estate planning on for size. That being said, it’s equally as important for protecting your family in case of an unplanned event. I frequently talk to young married couples who are just starting out. They use an online resource such as Legal Zoom to draft Powersof-Attorney and Wills. These online resources tend to provide quick turnaround times at a low cost, but often at the expense of quality. During a typical estate planning conversation, I ask the person who will be tasked with raising the children in the unfortunate event that they both pass away. Unfortunately, it’s quite common for both parents to have different ideas about what would happen in the case of an unforeseen death, but more importantly the Will might not specifically name a legal guardian. In many situations, this results in child guardianship issues being settled in Orphan’s Court. This is a very easily avoidable situation. I recommend individuals consult with a skilled Estate Planning Attorney.

Unplanned Contingencies – A Never Ending Threat!

As you grow, the potential for life altering events changes. In high school, totaling your car is a major financial setback. But as your lifestyle expands, you now have to cover contingencies such as fire and flood for your home. As you enter marriage, you need to protect your income due to disability or death. Neither subject is fun, I fully admit that. But it’s critically important to know that you and your family are covered in the event of an unplanned contingency. It’s prudent to speak with your insurance agent and estate planning attorney on an annual basis. Keep them appraised of life events. Did you get married or have a child? Did you get a raise or start a business? Having an open dialogue with your trusted advisors will allow them to provide you with the best advice for your personal situation.

Bryson Roof, CFP, is a Financial Advisor at Fort Pitt Capital Group in Harrisburg, and has been quoted nationally in various finance publications including CNBC, U.S. News & World Report, and Barron’s.

Killer Whales are attacking boats now. So, I can soon see “The Planet Of The Orcas” at a movie theatre near you.

I got a new financial advisor: Power Ball. His financial advice is “You can’t win if you don’t play.”

“Does outer space end, or go on forever?” Johnny Mathis answered this in 1958 when he sang “Until the twelfth of never and that’s a long, long time.”