The intent of proper insurance planning is multi-faceted and these strategies can play an important role as a cornerstone of most financial plans. If tragic events like death, disability or critical illness strike, proper insurance coverage can protect you and your family from undue hardship. No matter your personal situation—if you’re single or in a family; a professional or a seasonal employee; an executive or small business owner—we will work together to design a customized plan for you.
The coverage of life insurance policies is intended to protect and provide for dependents left behind in the event of an unexpected and untimely death, especially for a breadwinner or two-income household. The Death Benefit for life insurance policies passes to beneficiaries Income Tax-free, however may be subject to Estate Taxes depending on the size of the overall estate. The amount of death benefit should be designed to eliminate existing debts while also providing beneficiaries with financial stability and independence well into the future.
When looking at specially structured permanent insurance, we can address death benefit needs while also providing many “Living Benefits.” While Term insurance only offers a death benefit, properly structured permanent policies with a cash value component can offer additional tools for cash value accumulation as well as a supplemental sources of tax-free income. The funds can provide added flexibility in that they can be accessed without restrictions on age or purpose. Please note that these policies need to be treated responsibly and it is very important to consult a qualified insurance specialist before accessing the cash value.
Long-term Care (LTC) & Long Term Disability (LTD) Insurance
The intent of Long Term Disability (LTD) insurance is to replace income if one of the primary “bread winners” is unable to work due to illness, injury, or accident for a long period of time. Most employers offer some level or insurance coverage to address this, however it is important to measure this against the actual needs of the household to determine if it might be necessary to purchase additional personally owned disability coverage. For most business owners and specialized professionals, these types of policies are a very important component of a comprehensive financial plan.
The intent of Long Term Care (LTC) insurance is to replace income and cover medical care expenses if you should need professional medical attention either at home or in a designated facility for an extended period of time. These policies would apply if/when you are unable to perform any of a predetermined Activities of Daily Living (ADLs).Some employers offer LTC policies to their employees, however it is normally not an automatic enrollment and requires the employee to sign up and pay extra from their post-tax earnings. It is important to measure this employer provided insurance against the actual needs of the household to determine if it might be necessary to purchase additional personally owned LTC coverage. For most households, this is a very important component of a comprehensive financial plan, however it can be very expensive. Many LTC policies are also “use it or lose it” by nature, offering no return of premiums if the coverage is never used.
For more information on how we can help design customized insurance strategies for you, please contact us today.