While we don’t want to think of losing a loved one, a proper financial plan will have provisions in place for worst case scenarios. Money can never replace the emotional loss one will feel in a situation where a bread winner passes away, but it can help reduce the financial burden on the surviving spouse. Even in the case of dual income households, the loss of one of the incomes can be financially devastating. Many fixed expenses remain such as a mortgage or rent, utilities, day care or other schooling, personal debts, and other costs of living. Proper life insurance protection can fill this void so that loved ones can continue the lifestyle and dreams you imagined for them as they go through the grieving process without worrying about how to pay the bills. It is the foundation of any financial plan and eliminates a potentially financially devastating risk to your family’s future.
One of the most overlooked assets in your life is you and your ability to create an income. In most cases, it is the single greatest asset that you will ever have. How would you and your family’s life change if you weren’t able to get up every day and go to work to create an income? How would the bills be paid? Would you be able to take the vacations you dreamed of, buy the house you wanted, or send your child to the school they deserve? While a severe physical disability may seem unlikely, the most common causes of disability are a sickness or disease. There is a higher chance of you becoming sick or hurt and not being able to work than there is a premature death. Having an income plan in the case of a disability is crucial for any financial plan. Disability insurance is one of the most efficient ways to manage this financial risk.
Modern advancements in medical technology has made the need for a plan to pay for long term care an increasing concern over the past decade. Because people are living longer than ever before, there is an increasing demand for long term care services. Long term care services can be received in many different settings, not just a nursing home. Care services can begin while you are living in your home through home care services, then progress to adult day care or an assisted living facility.
With the cost of care going up every year, one spouse receiving and paying for long term care services can potentially annihilate a couple’s retirement savings and leave the surviving spouse with no financial assets. While Medicare is health insurance that pays for acute medical conditions, it does not pay for long term care services.
Many people believe their spouse or children will care for them when the time comes, however, the high physical demands required to care for a family member can leave the care taker physically sick themselves and potentially disrupt their own ability to generate income or maintain employment. Often grown children may have moved out of state and, now having families and careers of their own, are unable to take away from their own lives to care for an aging parent. While some affluent individuals choose to self-insure through their own assets, for most people this is not an option.
Your employer may provide basic benefits as part of your employment package. While they may provide some level of protection, in most cases they are insufficient in meeting the proper protection needs your family requires. Since employer benefits can vary greatly, we will provide an analysis of what you currently have through your employer and what the gaps are in your protection. Even if your employer provides options to buy-up certain levels of protection, the coverage may not be as comprehensive as they want or need.
Our practice is designed to create lifetime relationships by developing a financial plan to help accumulate and preserve client’s assets. This relationship is built on integrity and a perpetual improvement of our services, always remembering that our client’s values and objectives are at the center of every decision we make.