Monthly Topic

TOPIC OF THE MONTH – ASSESSING INSURANCE NEEDS

See if you have the right policy in place to help protect your loved ones and your legacy.

As you plan for the next big step in your financial life, it’s crucial to ensure that your plan provides the stability, longevity and security you need to retire with confidence. And having the right insurance policies today can help you prepare for whatever tomorrow has in store.

Options for any situation:

Life insurance comes in many forms, each with its own set of benefits, and you can tailor insurance to your specific needs.

Term life insurance

This type of insurance covers a specific duration, typically between 10 and 30 years, and you won’t accumulate any cash value. But it may be better for someone who has a temporary need for coverage to help protect their loved ones in the event something happens to them.

Permanent life insurance

Permanent life insurance is generally more expensive because it offers protection for your entire lifetime as well as access to tax deferred cash value to help future income needs. This makes it a versatile vehicle for incorporating longevity and wealth transfer goals into your financial plan. It can range in risk tolerance from low to high depending on whether you choose whole, universal, indexed universal or variable universal.

Long-term care insurance

This type of insurance gives you the support you need to cover expenses in the event you require long-term medical care. Policies can include both at-home and in-facility care options and can be arranged as a separate policy or a rider on a life insurance policy. Long-term care insurance is flexible and can be used as an inheritance paid to heirs in the event it is not needed. But it’s also pricey, so the earlier you get it, the more affordable it will be in the long run.

Disability insurance

Disability insurance provides you with tax-free cash flow to help you cover expenses in the event you cannot work because of illness, injury or disability. Protecting your income in the years leading up to retirement is essential to avoid disrupting your financial plan, and this type of policy can give you that extra layer of security as you near the finish line of your career.

It's for your legacy

One of the most impactful ways insurance can help you is with legacy and estate planning. Any time you make an adjustment to your estate plan, whether adding or removing heirs, updating beneficiaries or simply refreshing your wishes, a quick review of your insurance policies should go along with it. Many of your existing insurance policies could be flexible and able to be adjusted to best suit your needs of today, like long-term care and disability income. And it’s never too late to add a new policy that helps support your inheritance and wealth transfer goals.

Take the next step

As you know, we're always here to help guide you through each step in your financial journey. Please don’t hesitate to reach out and schedule a meeting to add or review your insurance policies. We can help match the policies you have to changes in your financial life and implement new ones to maximize the effectiveness of your plan.

These policies have exclusions and/or limitations. The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the insurance company.

Guarantees are based on the claims paying ability of the issuing company. Long Term Care Insurance or Asset Based Long Term Care Insurance Products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Please consult with a licensed financial professional when considering your insurance options.

These policies have exclusions and/or limitations. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long Term Care insurance. Guarantees are based on the claims paying ability of the insurance company.