This post was contributed by a community member. The views expressed here are the author's own.

Community Corner

"ARE YOU NEGLECTING YOUR FAMILY RESPONSIBILITIES?"

“ARE YOU NEGLECTING YOUR FAMILY RESPONSIBILITIES”

By Thomas L. Santamorena

I am utterly amazed at how little time, care and preparation are used by otherwise competent, savvy and intelligent individuals in reviewing, planning and implementing their family’s Financial and Insurance plans.  I've found most people spend more time planning their family’s annual vacation than monitoring, updating, implementing and overseeing their Financial and Insurance matters each year!

I've read it is estimated that more than 15 million civil cases are processed annually in state courts alone.  There are approximately 330 million US citizens, consequently you have a 21% chance of being brought into a lawsuit in any given year.  Wow!

Why do otherwise responsible and competent individuals behave in such an irresponsible manner; a manner that can ultimately bring them and their families to financial ruin?  I do not understand!

These are people that are business owners and senior managers of successful and well managed business organizations that meticulously plan every step and have multiple contingency plans for ever possible scenario.

They employ professionals, risk managers, insurance brokers, consultants, controllers, CFOs and numerous professionals to review, rate, appraise, analyze, propose and evaluate multiple risk management/mitigation plans ad nauseam, at great expense and time; but, can’t spend more time on their own family’s risk and insurance needs than they do on planning a family vacation.  Unbelievable!  Unacceptable!

We need to get a handle on our risk of being sued.  Do we have swimming pools, teenage drivers, dogs or other risk increasing factors in our life?  Are we aware and educated in all the risk increasing factors that may exist?  These circumstances change year to year, so a careful and deliberate review is necessary at least, again, at least, once a year to assess our risk vulnerability. 

Some additional risk increasing factors include: how many times a year do you throw big parties at home; do you own rental properties; do you drive a high performance sports car; are you a director or officer of any type of organization; do you transport other’s children in your vehicle. However, there are many more risk increasing factors than these that need to be addressed.  Be aware of that.
 

These are questions you should be discussing with your insurance agent to insure you are properly protecting your assets.  Do you even discuss your assets with your insurance agent?  Does your insurance agent know your net worth and financial exposure?  Have you been maintaining the same insurance coverage year in and year out?  Do you get an insurance renewal notice in the mail and immediately mail in your payment without any further thought or discussion?  If so, you may be heading for a financial nightmare.  Watch out!

Today actual jury awards are in the millions. Examples: a dog bite case in Maryland for $5.9 million; an Internet bulletin board defamation lawsuit for $11.3 million; horrific automobile accidents including a $21 million verdict in Texas and a $49 million verdict in California.

Remember, if you are not adequately covered by your insurance, the jury award above your coverage will be assessed by a systematic confiscation and liquidation of all the assets you have worked so hard for over the years.  It could very easily be gone over night.  These assets could be your retirement funds, children’s and grand-children’s college fund or any other asset that was earmarked for a purpose that is very important to you.  It will be gone in a split second!  Poof, your life has just been turned upside down. Don’t let this happen to you!

So please do not become one of the many people that are too busy to take the time to responsibly evaluate their family’s Financial and Insurance circumstances at least each year, and if possible, every time a risk increasing event occurs in their family’s lifes.  Remember, it can happen to you!  It happens to 15 million people every year!

Take the appropriate time to sit down with an experienced, trained and knowledgeable professional to carefully identify all of your vulnerable assets, expose all potential risk factors that can negatively impact you and your family and implement a plan to avoid and/or shift your exposure to these risks. Step up to the plate and be the family leader you were meant to be.  Please do not let your family down!  It is up to you.

The author is a Risk Management/Insurance Professional with over thirty years of experience counseling individuals, legal, corporate, insurance and risk management clients in the areas of self insuring, risk shifting, asset appreciation, risk management, loss prevention, insurance selection, litigation support and loss mitigation.

Thomas L. Santamorena, CIFI
Phone: 415-377-6163
Email: Santamorena@insurer.com

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?