Insurance Understood: Cliff jumping into insurance

By Steve Meldrum on November 5, 2022.

Have you ever been cliff jumping? How high was it and how did you prepare yourself to jump? For most people, they don’t go cliff jumping often enough to have an expert process. As a result, most people are hesitant at first until they get more familiar with their surroundings and are encouraged by someone they trust. I went this past summer in BC, and it took me a few minutes to be convinced, but I was happy I did it. This got me thinking about how people approach getting life, critical illness, or disability insurance.

For most people, purchasing insurance feels a lot like cliff jumping. You’re not sure if you want to do it, you see other people doing it, but you’re not sure how high to go. It can be daunting and even terrifying. If you need encouragement, look to someone you trust. If you’re a business owner, that person is usually your accountant.

Accountants are trusted because they are very aware of your goals, your business and have been trained to evaluate the potential impacts to both. I am currently taking an accounting course for accountants specializing in tax called the In-Depth Tax Program. I have been amazed at the defined process to evaluate, check and provide advice to people. I have loved seeing this backbone of the accounting world. In my view, your accountant should be involved in every insurance decision. If not, the consequences can really vary.

Since I work with accountants every day, I get to hear a lot of stories about insurance. Some are great and some are bad. The great ones are when there is collaboration and communication with the client and the professional team. Basically, the recommendation matches the persons ability at that moment in time. When its bad, the client did not check with the accountant first and over committed resources. For some policies, it can be hard to adjust and recover so the impact can hurt a lot. Let’s call it belly flopping your insurance.

I feel that its important for people to take their time to understand insurance and know what they’re getting in to. If you rush it, then you’re asking for trouble. The whole experience can be a lot of fun with the right people showing you where to go and encouraging you too.

Steve Meldrum B.Mgt. CFP CLU is the founder of Swell Private Wealth Ltd. For over a decade he has specialized in helping individuals and businesses expand protect and perpetuate their wealth. For further information or tailored advice, contact him at 403-487-0490, steve@swellwealth.com or connect on social media

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