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Are your children prepared for financial independence from an insurance perspective?

Baldwin Krystyn Sherman PartnersLaura Sherman, Partner Lowry Baldwin, Partner Elizabeth Krystyn, CEBS, Partner

South Florida Leading Insurance Advisor

One of the most complex insurance decisions happens when children come of age and start declaring their own independence. It can be difficult to know the best way to establish their financial identity and secure their own personal insurance for the first time. Several considerations and actions are therefore necessary to implement this new “silo of existence”:

Individually named insurance: As children move out to begin their careers, a transition occurs when it comes to insurance. By insurance industry stan-dards, a child is no longer provided “named insured” status on a parent’s policy once he or she is no longer a resi-dent. This scenario is considered a legal separation, and it is important that chil-dren secure their own liability coverage.

Choosing appropriate limits: A com-mon misconception when children tran-sition from dependence to independence is that they stand to lose little from a liability perspective. This is not the case. More commonly today, young adults stand to have judgments levied against their future earnings, not just current assets. It is therefore advisable that these young adults consider selecting their own personal umbrella coverage to protect their future financial advances.

Titling: At this entry point into adulthood, children also need to start planning for independent responsi-bility. Vehicle registrations, deeds, rental agreements, credit cards, etc. should have the child listed as an in-dependent adult. And parents plan-ning for their children’s long-term financial success should establish a separate trail of credit history once those children are out on their own.

Understanding exposures: Imag-ine a recent college graduate has just relocated to a new city to begin an internship for his or her career path of choice. A rental apartment has been secured, and the young adult has opted out of owning a vehicle in favor of public transportation. What unique liabilities or dangers is your young adult still exposed too? Even though he or she does not have own-ership in the apartment, as a tenant, this young person may be held liable for incidents that occur on premise. Renter’s insurance is thus an inex-pensive way to secure liability and personal property coverage. And even though this young adult does not own a vehicle, he or she is still exposed to auto incidents. Does this person ever ride in someone else’s

vehicle? What would happen if he or she were struck by a moving vehicle as a pedestrian? Non-owned auto insurance products are available to provide security in these very situa-tions. Like renter’s insurance, these inexpensive products provide cover-age for those without automobiles, including uninsured/underinsured motorist’s coverage.

Planning for the future: Newly independent young adults also need to start considering planning for long-term financial stability for them-selves and their future families. At this age, it is beneficial, from an avail-ability and cost perspective stand-point, to consider life insurance and long-term care options. In addition to implementing safety nets to pro-tect against liability litigation, it is also important to plan for continued financial freedom of potential costly expenses arising out of sudden dis-abilities and/or death.

Planning for and implementation of these types of security blankets is not only important for the child, but for parents as well. Proper preparation provides peace of mind for those par-ents, knowing their family members’ well-being is protected.

By Garrett Jones, Private Risk Advisor, BKS-Partners

1http://www.rd.com/advice/parenting/is-your-college-student-safe-at-school/

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“Newly independent young adults need to consider planning for long-term financial stability for themselves and their future families.”— Garrett Jones, Private Risk Advisor, BKS-Partners

How to reach BKS-Partners

Any member of our team may be reached at 866.279.0698. We look forward to speaking with you.

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Left to right: Laura Sherman, Lowry Baldwin, Elizabeth Krystyn

Insurance Services Experience 60+ years (combined)

Offices Tampa, Naples, Sarasota and Ft. Myers

Total Colleagues65

Website www.bks-partners.com

Professional Services Provided Specializing in private risk management, commercial risk management, employee bene� ts and wellness & safety programs

Accomplishments 2013 Tampa Bay Times No. 1 Top Work Place in the Small Category; 2013 Tampa Bay Business Journal Best Places to Work; 2013 IIABA Best Practices Agency; 2013 Gulfshore Business magazine Best of Business; 2012 Florida Trend Magazine Best Companies to Work For; listed among Inc. magazine’s 2013 5000

Email lsherman@bks-partners.com ekrystyn@bks-partners.com lbaldwin@bks-partners.com

Baldwin Krystyn Sherman Partners (BKS) is an award-winning independent insurance brokerage firm providing private risk management, commercial risk management, employee benefits and Vitality™ programs to clients wherever life takes them throughout the U.S. and internationally. One of the largest privately held firms in Florida, BKS takes a holistic and boutique approach to insurance architecture and risk management. The firm builds personalized client relationships and utilizes a proprietary process called RiskMapping™ to examine client lifestyles, passions, professions and business ventures, generating a 360-degree view of each client’s unique risk profile. BKS Holistic Protection™ is then custom designed, providing integrated coverage for all areas of a client’s life. Headquartered in Tampa, with offices in Naples, Sarasota and Ft. Myers, BKS is driven to make a difference in its communities, rewarding employees for their community involvement and supporting over 40 charitable organizations.

About Baldwin Krystyn Sherman Partners

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THE MOST OVERLOOKED ASPECT OF RISK MANAGEMENT.. .

There are several opportunities beyond our general assumptions that greatly reduce the costs associated with risk, including: • Eliminating • Transferring• Mitigating • Abating

Baldwin Krystyn Sherman Partners 4010 West Boy Scout Boulevard, Suite 200, Tampa, FL 33607 866.279.06989140 Corsea del Fontana Way, Building 110, Suite 2, Naples, FL 34109

1990 Main Street, Suite 750, Sarasota, FL 34236

HOW WE KEEP CLIENTS ENGAGED.. .

We’re not the typical insurance broker—we don’t simply place and maintain an insurance program. Each client periodically undergoes our strategic lifestyle diagnostic that includes the identification of solutions for family lifestyle management and “silent” exposures that often go undetected.

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the evolution of financial intelligence

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Laura Sherman Partner

Lowry Baldwin Partner

Elizabeth Krystyn, CEBS Partner

Baldwin Krystyn Sherman Partners 4010 West Boy Scout Boulevard, Suite 200

Tampa, FL 33607Tel. 866.279.0698

9140 Corsea del Fontana WayBuilding 110, Suite 2

Naples, FL 34109

1990 Main Street, Suite 750Sarasota, FL 34236

lsherman@bks-partners.comekrystyn@bks-partners.comlbaldwin@bks-partners.com

www.bks-partners.com

Baldwin Krystyn Sherman Partners is featured in Worth® 2014 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a Sandow Media publication, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of Sandow Media LLC. See “About Us” for additional program details at http://www.worth.com/index.php/about-worth.