Insurance Planning
THE IMPORTANCE OF INSURANCE PLANNING
Your insurance policies provide a layer of protection for you, your family, and your financial assets. Your insurance premiums are an investment in your financial security, providing the peace of mind you deserve. Life insurance is a great way to protect your loved ones from financial hardship in the event of your untimely death. But disability and long-term care insurance may be even more important to your financial stability.
Our team of financial advisors will perform a thorough review of your insurance policies to make sure you’re protected. Insurance Planning is part of your comprehensive financial plan because it is vital to protect the wealth you’ve worked so hard to build.
INSURANCE AS PART OF YOUR FINANCIAL PLAN
How insurance fits into your financial plan depends on your situation. Whether term or whole life insurance is the right option for you depends on your budget and your actual needs. If your wages contribute to your household expenses and help provide for family members, disability and long-term care insurance are important, too.
LIFE INSURANCE
Life insurance is an important insurance product that protects your loved ones from financial hardship and preserves what you worked so hard for when you pass. Term life insurance can be a good option if you have budgetary constraints because it provides low-cost coverage for a limited period, such as 20 years.
Permanent life insurance policies also build up cash value over the life of the policy and can be borrowed against or used as an income source in retirement. If cost is an issue, you can supplement your whole life policy with a term policy to provide additional coverage while your dependents are young and counting on your financial support.
Everyone’s insurance needs differ, so speak with a Graham Wealth Management advisor to help identify what option may be best for you.
DISABILITY INSURANCE
You have a higher chance of becoming disabled than dying during your working years. Even a short-term disability can cause financial havoc because you will incur medical expenses without earning a paycheck. Fortunately, you can purchase short- and long-term disability coverage to avoid emptying your retirement savings from unforeseen events. Long-term disability coverage will pay a percentage of your wages until you’re recovered enough to work again or old enough to retire.
LONG-TERM CARE INSURANCE
The costs of long-term care are staggering, and they’re usually not covered by regular health insurance policies. Long-term care costs include costs of a nursing home, in-home care providers, rehabilitation, and physical therapy. Long-term care insurance sometimes even covers short-term hospice care. Without long-term care insurance, you have to rely on the wealth you’ve built up to ensure you receive the care you deserve.
ANNUITIES
Annuities are another insurance product, but they’re actually used to provide a regular income stream to protect your assets from longevity risk. If you’re nearing retirement, you may purchase an annuity to receive a fixed monthly payment for a certain number of years. You can purchase annuities that pay out starting at some future date or even right away. They’re a great way to streamline your income and ensure you can pay your bills.
FAQS ABOUT INSURANCE PLANNING
Insurance products can protect your financial assets or provide peace of mind for your family. Some, such as permanent life insurance and annuities, can even be used as an income source during retirement. Your financial plan is not complete without a thorough evaluation of your insurance policies, because an adverse event could wipe out your assets at any time if you don’t have insurance to cover it.
Ideally, you’ll get the maximum insurance coverage you can afford. The more wealth you have accumulated, the more important it is to protect yourself with insurance. Without insurance coverage, you’re basically self-insured, which means your savings and investments are the only financial backup plan when disaster strikes.
Annuities as insurance products are great tools for lifetime income planning. When you purchase an annuity, you have the peace of mind that you’ll receive a regular income stream from that annuity for several years to come. It’s a great way to budget your retirement income to ensure you don’t run out of money.
LET’S REVIEW YOUR INSURANCE PLAN
Your financial plan must include the right insurance policies to protect you, your family, and your wealth. We understand the importance of insurance as part of a financial plan, and we’ll make sure you don’t take on unnecessary risks without it. Call us today to talk about your insurance plan.
