Fixing an Anemic Insurance Portfolio

by Administrator 11. July 2012 11:35

Insurance is a product that is meant to provide protection to policyholders and their families over the years. A properly developed insurance portfolio provides adequate protection for the policyholder’s property and risks while also sheltering them from too much in self-insurance liabilities.

If one isn’t careful about how they design their insurance portfolio, they could end up with a placeholder plan that provides a significantly false sense of security and very little real protection. 

There are four things you can do to fix your insurance portfolio if you think it doesn’t provide sufficient protection:

  1. Increase your limits: If your limits are too low then you will not be reimbursed enough to make yourself whole after an insurable incident. Increase the limits on your insurance policies so that you have sufficient benefits.
  2. Decrease deductibles: If your deductibles are too high, then you will be self-insuring a large portion of your potential losses. Decreasing your deductibles can raise your premiums, but in exchange for a more protective insurance portfolio.
  3. Look for highly rated carriers: An insurance policy is only as good as the company that issues it. Your portfolio may be anemic for reasons you don’t expect—including that your insurance company can’t actually back their promise to pay you in the event of a claim. A.M. Best is an insurance rating agency that examines the financials of insurance companies and issues letter grade ratings to indicate how financially healthy a company is. Check out the ratings of your insurers and if you find them falling, consider changing to a more secure carrier.
  4. Add additional coverage: Insurance policies can have different options for coverage that supplement the main purpose. For example, a life insurance policy can be designed to also provide living benefits in the event that the insured is diagnosed with a terminal illness. A Texas auto insurance policy can be restricted to just the state-required coverage or it can be structured to include loss of use and comprehensive benefits to reimburse in the event of theft or vandalism. Understanding these options and including them in your policies will help beef up your protection exponentially.

If you are ready to explore the gaps in your insurance coverage and limits and give your anemic insurance portfolio a boost, give us a call at (800) 212-2641.

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