Risk Management & Insurance
As much as we try to prepare for them, tragic events like death, disability, or critical illnesses sometimes strike. When faced with such a situation, insurance can protect you and your family from undue hardship. For this reason, a variety of insurance coverage is essential to any comprehensive financial plan.
Insurance planning is best when tailored to fit your personal situation. Whether you're single or have a family, are an employee, corporate executive, or small business owner, everyone can benefit from an appropriately customized insurance plan.
Life Insurance
More than just planning for the security of your loved ones, life insurance can be a cornerstone in any multi-generational financial strategy.
Life insurance can provide financial resources in a number of concrete ways, from immediate expenses such as hospital bills to income replacement or assistance in settling outstanding debts. It can also help with estate planning and charitable contributions. Some forms of life insurance enjoy tax advantages which can make them an ideal addition to any financial plan. In the event of your death, life insurance offers your surviving family members increased financial resources. As a tax-free lump sum payment, a life insurance death benefit might pay for final expenses and debts, as well as provide income for your dependents.
The two main forms of life insurance policies are term insurance and permanent insurance.
Term insurance involves paying a premium to secure a death benefit payment to beneficiaries. It provides protection for a specified period and is usually renewable. There are several different kinds of term life insurance, including Level Term, Annual Renewable Term, Decreasing Term, and Return of Premium term life insurance.
Permanent insurance involves comparatively high premiums at first, but costs may drop significantly over the long term. Furthermore, some permanent insurance plans include a cash value and associated tax-advantaged borrowing privileges. Permanent life insurance includes Variable Life, Whole Life, and Universal Life policies.
Life insurance offers several advantages:
- An instant estate for loved ones at a time when funds are most needed
- Death benefits are generally non-taxable
- Life insurance plans with a cash value component offer tax-advantaged borrowing opportunities
- Some plans allow policy-holders to invest the cash value or death benefit in sub-accounts containing stocks, bonds, or other investments
- Gain tax advantages and help support a charitable interest through a charitable life insurance program
Long-Term Care and Disability Insurance
Help guard against the impacts of an unexpected event through long-term care, disability and critical illness insurance.
Unfortunately, present forms of federal and state-sponsored health care programs do not comprehensively cover long-term care. Medicare generally offers temporary assistance, while Medicaid, which varies by state, may require out of pocket expenses and very low levels of asset value before public assistance becomes available.
Income is important for both current financial obligations (e.g. grocery bills and mortgage payments) and for future financial resources (e.g. planning for a child’s education or for retirement). Think what might happen if an income stream was lost through a long-term illness or disability. These insurance products help protect the ability to earn an income, which can be affected by a disability or other condition. Long-term care and disability insurance products can also help you and your family maintain your financial independence, lifestyle, and long-term financial resources in the event your income is impacted by illness or disability.
A comprehensive financial plan can protect income and provide resources through life insurance, long-term care and disability insurance. Contact me today to find out which policies are best for your unique circumstances.
