Throughout my career, I've witnessed firsthand the pivotal role that insurance plays in safeguarding individuals and families against unforeseen circumstances.
Let’s discuss some of the key aspects of life, disability, and long-term care (LTC) insurance, along with the importance of securing adequate coverage tailored to your unique needs.
Life Insurance: Term vs. Permanent
Life insurance serves as a safety net, providing financial support to loved ones in the event of your passing. When it comes to choosing between term and permanent life insurance, one must carefully weigh the pros and cons.
Term life insurance offers straightforward coverage for a specified period, making it an attractive option for many individuals. With term insurance, you pay premiums for a set term, and in return, your beneficiaries receive a death benefit if you pass away during that period.
On the other hand, permanent life insurance offers lifelong coverage, along with a cash value component that accumulates over time. This option may seem appealing as it ensures that one retains coverage for the rest of their life. However, it often comes with significantly higher premiums and fees which can make it less cost-effective for many individuals.
Disability Insurance: Protecting Your Income
Disability insurance is another critical component of a comprehensive financial plan, particularly in light of the rising incidence of mental health issues and cancer diagnoses. This type of insurance typically provides 50-70% income replacement if you are unable to work due to illness or injury, helping to ensure that you can continue to meet your financial obligations.
When considering your needs as it relates to disability insurance, be sure to review any employer-provided disability coverage and assess whether it is sufficient for your needs. If additional coverage is necessary, exploring options from other insurance companies can provide peace of mind and enhanced protection.
Long-Term Care (LTC) Insurance: Planning for the Future
With the cost of LTC services steadily increasing, planning for potential LTC needs is important. LTC insurance helps cover expenses associated with services like nursing home care, assisted living, and in-home care.
While LTC insurance premiums may rise over time, there are other alternatives to explore. For example, leveraging home equity can be a viable alternative for funding LTC needs. By tapping into the equity in your home, you may be able to access funds to cover LTC expenses as an additional resource to complement your more liquid savings or retirement accounts.
Property & Casualty Insurance: Protecting Your Assets
In addition to life, disability, and LTC insurance, it is wise to address property and casualty insurance; specifically liability and replacement coverage for your dwelling. Many individuals are underinsured when it comes to liability protection, leaving them vulnerable to financial risks. As house prices have risen, many are also underinsured should they need to rebuild after a loss.
Working closely with your property and casualty agent, you can assess your homeowners and auto insurance policies to ensure adequate coverage. Supplementing your existing coverage with an umbrella policy can provide an extra layer of liability protection, shielding your assets against potential lawsuits and claims. Increasing your dwelling coverage can ensure sufficient protection considering the recent increases in home prices over the last few years.
–
Insurance plays a vital role in securing your financial future and protecting against life's uncertainties. By understanding the nuances of life, disability, and LTC insurance, as well as property and casualty coverage, you can make informed decisions to safeguard your assets and loved ones for years to come.
A strategy tailored to your specific goals is key to achieving lasting financial security. To discuss your unique objectives, contact us today.
This content is provided for educational purposes only, represents only a summary of topics discussed, does not constitute any personalized investment advice or recommendation, and represents only the views and opinions of the speakers which are subject to change without notice. Investing involves risk including the potential loss of all amounts invested.
This material prepared by Certus Wealth Management, LLC (“Certus Wealth”) is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Opinions expressed by Certus Wealth are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Certus Wealth, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Certus Wealth does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.
