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The Importance of Insurance Planning

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It’s easy to take insurance for granted, but many people don’t actually use insurance planning effectively. When you work with our financial advisors, we will help you decide which insurance policies you need to protect yourself, your family, and the wealth you’re building. Don’t look at insurance as a drain on your finances. Instead, you should consider it an investment in your future security. 

For example, when you think about disability insurance, you’re spending a bit of money every month to ensure you can provide for yourself and your family even if you can no longer work at your job. Without the insurance, you’d have to drain your savings and retirement accounts until there’s nothing left. Our financial advisors can help you determine what insurance coverage you need.

How Insurance Fits into Your Financial Plan

How Insurance Fits into Your Financial Plan

The more assets you have, the more insurance you want. If you’re providing financially for your family or your loved ones, you must also protect your ability to earn an income. This can be done with life, disability, and long-term care insurance.

Term & Whole Life Insurance
Life insurance is available as term and permanent life insurance. Both types of policies have a death benefit, which you can choose when you create the policy. Term life lasts for a specific number of years, usually 20 to 30 years. Permanent life insurance never expires. While you pay the premiums, this type of policy also builds up cash value. You can borrow against your permanent life insurance policy or even withdraw money if needed. It’s an investment and an insurance product in one. 

Disability Insurance
It’s more likely that you become disabled than die young. Even a temporary disability can put a tremendous strain on your finances. Disability insurance can help you pay your living expenses while you’re not able to go to work and earn a paycheck. Disability insurance can help you recover and rehabilitate after an injury. It gives you the opportunity to switch careers if needed. If your disability prevents you from going to work permanently, disability benefits can last all the way through retirement. 

Long-Term Care Insurance
There are a lot of expenses associated with anyone in need of long-term care. Long-term care insurance covers the costs your health insurance will not. This includes nursing home care, in-home care, rehabilitation, and sometimes even short-term hospice care. 

When you have long-term care insurance, you don’t have to rely on family members to care for you. This allows you to live with dignity while receiving the care you need. Long-term care insurance protects your assets, which can be drained quickly with these types of expenses.

FAQs about Insurance Planning

What Is Insurance Planning?
Insurance planning includes determining how insurance can protect you and your wealth. The right insurance plan will protect your wealth and contribute to your financial success. You can’t control the things that happen to you, but you can prepare for probable scenarios with optimal insurance coverage. 

Is Life Insurance Part of a Sound Financial Plan?
Yes, most definitely. Life insurance can protect your dependents from financial hardship in case of your untimely death. But it can also be used as a wealth accumulation tool. You can get a permanent life insurance policy and supplement with a term life policy for additional coverage. 

How Much Life Insurance Should I Carry?
Nobody has ever complained about receiving too big of a life insurance payout when a loved one died. It’s probably a good idea to get as much coverage as you can afford. At a minimum, your life insurance should provide for your family until they can stand on their own feet financially. If cost is an issue, a term life policy can save you money in the short run. You can also supplement your whole life policy with a term life policy for added protection.

Let’s Create an Insurance Plan for You

Let’s Create an Insurance Plan for You

We want to make sure you’re protected, no matter what life throws at you. Our financial advisors can help you find the best insurance coverage at affordable rates for you and make sure they fit into your financial plan. Call us today to schedule an appointment.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you. |  (314) 309-3487