Risk management is intended to minimize financial and other losses potentially associated with risks to your assets, business or health.
Some examples of risk are personal and professional liability, business ownership, property loss, and catastrophic illness or disability. Your first line of defense is to identify your sources of risk and then to either avoid or minimize exposures to income and your survivors. Your last line of defense is insurance. Some examples of risk include:
Asset protection planning manages risks to your wealth. Because life happens, lawsuits, accidents, property damage, and other financial risks are facts of everyday life and asset protection planning looks to transfer the risk of these events through:
Both genetics and lifestyle affect your risk profile, and although you have no control over your genetics, you do have control over how you live your life. Lifestyle choices can have a direct impact on your health care costs and should also be considered as part of a comprehensive risk plan.
As life changes, insurance needs often change as well. We offer disability, life, annuity, and long-term care policy reviews with all our clients as part of the planning process.
When building a comprehensive financial plan, life insurance can serve several purposes for families and individuals. Life insurance can be used to create an estate for the people you love. It can also provide the necessary cash to pay estate taxes, balance family inheritances, or pass on a family-held business intact. Finally, it can be used as a vehicle for asset accumulation. Insurance policies used for this purpose are not typical “ordinary life” policies. These policies are designed so that you pay a large premium for a nominal death benefit, with the key focus of the policy being tax-deferred asset accumulation and a tax-free death benefit. This type of asset accumulation does not fit everyone’s scenario but, on occasion, its use makes good sense.
Check out our Life Events Timeline to help you visualize where you might need insurance protection during the various stages of your life.
Long-term disability and care are vital considerations in the survival of your estate and financial well-being of your family. You may be in good health, active and young enough not to think you need planning for a potential long-term care event, but have you thought about what such an event could do to your family and your finances? Consider a few facts about long-term care:
Although medical advances have helped increase quality of life and expectancy, we must still face the realities of aging. The best time to talk about a crisis is before it happens.
If you have existing insurance coverage that you have questions about or are considering the purchase of a new policy, we’ll be glad to help you determine if this coverage is the right fit for you and for your financial portfolio.