In honor of September being National Preparedness month, we are asking you to take the Goldilocks Test. Huh? What does that have to do with preparedness and finances you ask? Think back to your childhood, or the last time you read this classic tale to your child and you will remember what Goldilocks was in search of…a chair, bed and porridge that was “just right”. Not too hard or too soft, not too hot or too cold but just right. Well that’s what all of your insurance coverage should be: Just right. Whether it’s life, auto, disability, health, or even flood insurance, it should be reviewed each year to make sure it’s “just right”.
Circumstances change. Coverage becomes too much, too little or sometimes no longer even necessary. Or the need for a certain type of coverage becomes really necessary like in the case of life insurance after you have your first child. Applying the Goldilocks test is easy. Go through what you have, what you need and what it costs. Does your coverage still make sense for your current family situation? Can you increase deductibles on your homeowner’s policy? Can you save in one area to give you a bit more budget to necessary coverage in another area? Can you drop your disability insurance because you are near retirement and your nest egg is in place? Or do you need to sign up for disability insurance at work? Do you have a new driver in the house who was never added to your auto policy? Start asking these questions and you will be surprised. In the end, you will know it’s “just right”.