Careful wealth management is best accompanied by thoughtful insurance planning. Insurance planning can be a delicate topic, since it is hard to think about what will happen to your loved ones after you pass. However, life insurance plans help to remove the uncertainty and worry, bringing you and your family peace of mind.
Insurance can serve many purposes. Yes, life insurance provides financial security for families and loved ones in the event that unforeseen circumstances lead to the loss of income. However, there are other types of insurance; disability income insurance, for example, can provide for you or a loved one living with a disability.
Long term care insurance is essential for providing for individuals with long term care needs; medical and living expenses can increase sharply when dealing with disabilities, and insurance can help provide financial stability and resources for many years to come.
These are just some of the things we can help you set up while working on your life insurance plans. You may think that life insurance can be obtained “a la carte,” but there is no substitute for an experienced financial planner in this process. Make certain that you are choosing the best options for yourself and your family by working with a professional.
Life insurance should never be used as a standalone financial plan for the future! It functions as an aspect of your greater life plan as a whole. With life insurance, you can take estate and financial planning a step beyond dividing and protecting your assets; you can provide your family with an extra buffer of financial security.
Especially in the instance that an accident or emergency removes a family’s main wage-earner from work, life insurance is incredibly valuable. You can have a thoughtful, extensive, and well-constructed estate plan, but if you pass away earlier than expected, life insurance payments will help your family maintain financial stability during a hard time.
It can also serve as an important part of retirement. If you and a spouse or family are all at least somewhat dependent on your retirement payments, life insurance will provide extra income to replace your ceased payments in the event of your death.
Your financial advisor can also help you figure out ways to keep from falling into extensively taxed areas with your financial plan. An entire area of law stems from the US tax code, and no layperson should try to structure their own strategy for tax reduction.
Without careful planning, your income, investments, accounts, and other assets may be subject to taxes that could have been much lower with a careful financial plan. Certain types of investments are considered “tax-favored,” and you want to take advantage of them to the fullest extent possible.
This kind of insurance provides financial support for individuals with medical conditions or disabilities that require increased medical or living costs over a long period of time. Many people at some point in their lives will require long term care assistance, and it may only get more expensive and necessary as time goes on.
Long term care insurance will enable you to live comfortably and pay for the medical assistance and home modification costs that you need to support your condition. It is not necessarily meant as a standalone income source; rather, it supports investments, familial aid, additional income, Medicaid or disability benefits, and other financial supports.
This is why long term care insurance requires careful planning. You will have a multitude of plans and options to sort through, and we can help discuss them with you and make the best choice together. Don’t leave future financial security up to chance – let’s start working on your insurance plan now.