Financial protection is about the needs for different types of insurance. Most people don’t like insurance because they end up paying a premium for a benefit that they will most likely never use and is not for their specific benefit. To be very clear, most insurance does not necessarily protect the person that is buying the insurance or the person that is covered. For example, home and auto insurance is for a catastrophic loss (which most of us don’t have). However, it is also designed to cover the companies that offer loans or mortgages so they do not go out of business when there is a catastrophic loss. Life insurance does not protect the person that is the insured but financially provides for the beneficiary of the policy.
However, in financial planning we see the benefits of using insurance and thus they become a necessary evil. Through our Lifestyle Financial Plan we can show you why term insurance is good for a young family with kids. We can show you the benefits term insurance and health insurance if you want to retire early. We can even show the benefits of life insurance for wealth transfer.
The area that will affect most people is long term care costs. Long term care covers two areas: The first is the level of care of the person who needs long term care, and the second is maintaining the health of the person that does not need long term care. In your Lifestyle Financial Plan, this cost is picked by the client based on their goals. Then we run different scenarios to decide if an insurance product needs to be purchased or not. There are so many long term care products out there and we can help you understand them. We can also share what is efficient based on the age and how much benefit you want. My parents are currently in a stage of life where they are using their long term care policy. There is no way they could have afforded the level of care they received without long term care insurance.
We can include these areas of insurance and more in your Lifestyle Financial Plan. In some cases, we will be able to provide you with insurance products that you need and others we will refer you to one of our partners or you can use your own insurance agent.