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Insurance Planning

How Life Insurance Fits into Your Financial Plan

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Life insurance is an important part of financial planning. One reason you work so hard to save for the future and build wealth is to take care of your family. If something happens to you, life insurance can provide for them when you’re no longer able to. We’re here to help you evaluate your life insurance policy to make sure it adequately protects your family if the unthinkable happens.

There are two different types of life insurance products: term and whole life. A term life policy provides a death benefit for a moderate premium. Typically, term life policies expire after 20 or 30 years. The idea is to have life insurance coverage when the kids are young and need your financial support. A whole life policy provides a death benefit, but it also builds a cash value and is another option for investing your money.

Why Insurance Planning Makes Financial Sense

Life insurance isn’t the only insurance product your financial plan needs. Insurance is the best way to protect your financial assets. Different insurance policies cover unique events. For example, without long-term care insurance, you may spend a significant portion of your wealth on medical care that’s not covered by your health insurance. Similarly, disability insurance protects your income-earning abilities, ensuring you can cover your expenses even if you’re unable to work. 

<span style="font-weight: 400;" data-mce-style="font-weight: 400;">How Long-Term Care Insurance Protects Your Assets</span>

How Long-Term Care Insurance Protects Your Assets

Long-term care insurance can pay for a nursing home, rehabilitation programs, an in-home caregiver, and medical supplies your health insurance won’t cover. Without long-term care insurance, your family members may have to care for you full time while neither of you can earn an income. Alternatively, you’ll end up paying for the healthcare costs out of pocket from the wealth you’ve built for the future.

When you purchase long-term care insurance, you pay for a specific benefit amount over a certain number of years. It allows you to receive the medical care and assistance you need without worrying about how to pay for all of it.

When to Get Life & Disability Insurance

Life and disability insurance cover separate events. Life insurance is most important when you have significant debt, few assets, and people in your life who financially depend on your income. Your life insurance policy should provide for the dependents until they’re old enough to care for themselves. At the very least, it should provide significant relief to their primary caregiver.

Disability insurance can replace some of your income if an injury makes you unable to work at your regular full-time job. It may provide temporary assistance while you recover from your injuries or receive training for a new career in a different field.

FAQs about Insurance

What Does Insurance Have to Do with My Finances?

Your insurance policies are like an umbrella. They can’t stop the rain from coming, but they can keep you safe and dry underneath. Your insurance is there to protect you, your family, and your financial assets you’ve accumulated over the years. Without insurance, you’re taking on more risk than you need to.

How Much Insurance Should I Carry?

How much insurance you need depends on your financial situation. If you’re the primary earner, your life insurance policy takes care of your family’s financial needs when you’re no longer around. Your insurance needs will change as the kids grow up and move out. To find out how much coverage you need, schedule an appointment with our financial advisors. We’ll look at your financial situation and provide you with the best recommendation to fit your needs.

Will My Family Be Taken Care of If I Pass?

If you want to ensure your family is taken care of, it’s important to review your insurance policies with our financial advisors. Most experts recommend insuring your life for a multiple of your annual earnings. But it all depends on your financial situation. If you have limited assets, lots of debt, and young dependents, you may need more. 

Let’s Review Your Insurance Plan

Don’t wait to review your insurance plan. It’s important to protect your loved ones and your financial assets with the insurance policies that are right for you. Contact us today to schedule an appointment to review your insurance needs. | 209-579-9992