Insurance Planning

Life is unpredictable, but you can help mitigate some of the financial risks of a catastrophe event with the right backup plan in place. These days there is insurance for just about everything, but you don't need to sign up for dozens of policies. Instead, you should consider signing up for insurance policies that are aligned with your needs, lifestyle, and age.

This is why it can be a good idea to work with a financial advisor or financial planner who understands their clients' insurance needs. We can help you navigate the complexities of insurance and coordinate that with your financial picture to provide the most complete plan possible. We offer insurance planning services to help you choose the most appropriate policy for your needs.

What is Insurance Planning?

What is Insurance Planning?

Insurance planning is a portion of financial planning that protects you and your family against the high costs associated with illness, accidents, disability, and/or premature death. While no one wants to be the victim of these situations, they occur frequently. Having the right insurance policies in place can ensure that your family stays financially solvent if something occurs.

Proper insurance planning helps protect other financial assets too, like retirement funds that you have accrued as you will be able to rely on your insurance funds rather than having to dip into savings or other long-term investments.

Policies that every financially responsible individual should consider are: life insurance, long-term care insurance, and disability insurance. Unfortunately, it is not enough to plan on another individual paying their share of liability if you are injured due to negligence. In far too many cases, responsible parties are underinsured or uninsured. In this situation, you will not receive any financial aid unless you have taken extra steps to protect yourself.

Insurance Planning Considerations

Insurance planning should be considered an inseparable part of retirement planning. It is the number one thing you can do to protect yourself as you age and to offset the financial risks of the unforeseen. As you age the costs of many insurance policies will increase, especially life insurance and long-term insurance plans. Subscribing earlier can lock you in at a price point that won't change as you age, thus reducing the amount you would pay as you age to maintain the same level of coverage.

No one likes to talk about the what-ifs, but doing so will help make them less financially catastrophic if they do occur. The goal of a financial planner is to walk you through every future scenario that may occur and ensure that you are fully covered. Insurance planning helps you to be prepared for unforeseen events. Having long-term care and/or life insurance is a reasonable and proactive approach to take when you are younger and in good health. Waiting until a mishap occurs can cause undue financial duress.

Insurance Planning Pros and Cons

Insurance planning can be complicated and it is possible to end up over or underinsured. That is why having a professional to advise you is so important. People often end up over insured because they subscribe to private policies and employer policies that overlap. In contrast, others end up underinsured because they think their work policies cover more than they actually do. A professional agent can help sort through your current policies to determine whether you might need a supplemental plan or even to cut out an unneeded one.

One obvious pro of insurance policies is that they will cover your medical costs and property damage in certain scenarios, but a downside is that some policies have many exclusions. These exclusions can mean that unforeseen accidents won't be covered. Another advantage is that the right insurance can protect you in the case of a medical emergency, but the added premiums can add expenses to your retirement budget. These are all things that need to be carefully balanced by a professional insurance planner.

Frequently Asked Questions

Insurance planning is the evaluation of what kinds of coverage a person needs to protect themselves from unforeseen circumstances, with consideration of how the risks of being uninsured affect that person financially.

Depending on the life insurance policy you secure, it can be used as a cash investment and also support your family financially if you suffer an untimely death.

The optimal age is between the ages of 50 and 62. You don't want to pay an excess premium prematurely, but you may not be eligible if you wait too long because of pre-existing conditions.

Insurance can help protect your estate in the case of your untimely death by providing cash so that your estate does not need to be divided or sold to provide cash to your remaining family members.