As a kid, I didn’t quite get the point of Wile E. Coyote chasing down the speedy Road Runner, hoping to get a filling meal from the dodgy bird. I figured, if he had the money to spend on numerous ACME products, why not spend cash at a fine restaurant? I didn’t get it. I didn’t laugh. It wasn’t until I grew up to become a man that the relentless chase of that particular roadrunner started to make sense. Now I find it hilarious because we’re all chasing that roadrunner in every stage of life. My job today is to identify that roadrunner at every step of our lives and how you can protect your investments in your ACME products spent trying to catch it.
First Step: The Raging 20s
Although I have to say, I don’t remember everything in my 20s, I do remember my first adult car. It wasn’t my dream ride, but it was mine — clean, fast and humming like a bird. It was my sole possession. My petty weekly check barely covered the fuel that made it go. However, it also covered my auto insurance, partly because it was the law to have liability coverage for your vehicle. So like a good boy scout, I picked the first coverage I found, not doing the necessary research to score the best coverage for the right price. Luckily, I never had a car accident that was my fault. Other drivers’ bumpers seem to find mine. Enough said. As I grew into my late-20s, the value of my ride increased, so I had to add collision coverage to protect my baby girl. For a few more dollars, my car in shining armor was protected from those heat seeking bumpers. But here’s something society rarely shares with you. Your “stuff” also has value. That eclectic CD collection you started when you were 12 is worth something. That comic book collection you promised to your little brother if you get hit by a freight train is worth something. Quality renters insurance would be a wise investment. Not only does it protect the stuff you hold dear, but it could protect you from liability if a visitor from out of town slips and breaks their cannoli.
Second Step: The Anxious 30s
You have a good education and a solid gig. Now it’s time to rule the world. You have a little cash saved up and a decent 401k. It’s time to invest in a home, share the world with a spouse, and raise one or two rug rats on the way. Everything you care about just grew exponentially. On your way to world domination, you buy some property. So you’ll most likely owe the bank about…give or take, carry the two…oh the rest of your life. You have to buy homeowners insurance. For such a large investment, you need to protect it. In fact, banking institutions require homeowners insurance before they ever consider a home loan. Then there are the kids to consider. There are so many investments you can do to secure their future, a 529 college savings plan, an estate plan (with trust included), and life insurance. At the very least, you’ll should consider a good term life policy. Think of it this way, now that your stuff has gotten big time, don’t you want to make sure your time and effort are protected from an unpredictable future?
Third Step: The Relaxed 40s
You didn’t quite conquer the world, but you raised a family and can relax in the comforts of your surroundings, a home, fancy car, and a vacation getaway now and then. Your life’s journey has gotten off to a great start, now it’s time to pull over and smell the roses. Now it’s time to make your money work for you. You have your various investments, 401k, IRAs, stocks, or bonds. Consider letting your life insurance help while you’re alive. A whole life policy might be an option. They offer redeemable cash value, which comes in handy for those exquisite vacations. Unlike term life insurance, years of premium payments build cash value to be used at a later date. “But what if I have my own business to think about?” you might say. Well, as your company grows, you’ll need the proper business insurance coverage to keep up. Trust me, you do not want to be under-insured if the improbable were to happen. It’s more than just the structure you want to insure. A great way to think about it is, if you turn the building upside down, everything that falls to the roof should be insured. And as a contractor, having professional insurance is a given.
Fourth Step: The Chill 50s
There’s something very surreal about your 50s. You know they’re coming, but you never really see them coming. It’s good though. You’re now comfortable in your own skin, and life’s tribulations bounce off you like raindrops off a designer umbrella. Did someone say umbrella? Okay, I have to segue to umbrella insurance coverage because, as you get older, you start to realize that you have accumulated more things, very expensive things. For example, I have a buddy who is into fishing big time. Time to take it to the next level. Time to buy a boat, a deep-sea fishing vessel to be exact. It’s definitely a costly investment but not as costly as watching it sink with not enough insurance coverage. That’s where umbrella insurance coverage enters the scene. It gives you that added financial coverage for the more extravagant toys in life. It’s also an important must-have if you’re buying a new home in California to go with that Lamborghini.
Fifth Step: The Later Years
I know it’s unfair to group those after 60 into one group. I mean someone who’s 60 is very different from someone who is 80. I get that. However, I’ve found one commonality for all ages in the later years: downsizing. To put it simple, you just don’t need all that stuff anymore. Now you want to see the world, and the last thing you want is all that stuff weighing you down. The kids are out the house, and you’d prefer climbing through the French Alps than driving down I-5. Travel insurance becomes a top priority. You have your trust set up, and you’re not driving as much. So you’re going to want to adjust your auto insurance, and maybe you have a life insurance policy that adjusts as your mortgage is finally paid off. Perhaps, you want your beneficiaries switched to your grandchildren now. It’s all within reach with the right insurance agent/broker.
So, as you chase down that road runner of life, protect the time and effort spent realizing your dreams. You won’t regret it.
Rafael Scott is the founder and CEO of Rafael Scott Insurance, placing business through Farmers Insurance. We specialize in home, auto, business, renters, and life insurance. To get a FREE customized quote, go to rsinsured.com to protect what’s yours. License# 4113895
