Let’s face it, insurance isn’t exactly a “fun” topic. It’s not something the average person posts about on social media or chats about over coffee. But when something unexpected happens, it’s the financial safety net you’re glad you had in place.
As a licensed financial advisor in insurance, I’ve seen firsthand how the right coverage can protect everything from family legacies to small businesses. I’ve also witnessed the stress, emotions, and expenses that arise when there isn’t enough protection. It doesn’t have to be that way, so let’s look at some areas of coverage that I recommend to my clients.
Life Insurance: Love in Policy Form
If something were to happen to you tomorrow, would your loved ones be okay? Life insurance helps ensure that your family can still pay the mortgage, fund college, or simply breathe a little easier financially if you’re no longer around.
There’s no “one size fits all” when it comes to life insurance. The amount and type (term vs. permanent) should be determined by your:
- Income and debts
- Dependents
- Phase of life
- Future goals (like education or legacy giving)
For those still in the workforce, it’s important to know that even if your employer provides life insurance coverage, it may not be sufficient or portable if you change jobs. A quick insurance review with a financial advisor skilled in insurance coverage can help you know for sure, and we can advise you on the type of policy that makes the most sense for your situation. We also assist clients in adjusting their coverage over time, as their children become adults or in similar scenarios where the amount of coverage needed may change.
Long-Term Care Insurance: Planning Ahead
Here’s a hard truth: about 70% of people over age 65 will need some kind of long-term care during their lifetime1. Unfortunately, Medicare doesn’t cover most of it, and likely can’t be relied upon as a safety net. And, with the rising cost of extended care (the average annual price of a private nursing home in Maryland is $120,0002), it’s wise to have a plan for this expense.
Long-term care insurance is about protecting your retirement savings and your family from the financial and emotional toll of extended care. This could include in-home help, assisted living, or nursing care, provided on either a temporary or long-term basis. For many families, relying on one another to provide this care can pose broader issues and stress.
The ideal time to consider this type of insurance is before you need it, as premiums tend to be lower, and options are more varied. We assist clients in strategizing other areas of their plan to fund long-term care insurance, which can save a significant amount in the long run.
Disability Coverage: A Common Gap
When people think about financial planning, they often focus on saving for the future or protecting loved ones, but what about protecting your income?
Disability insurance is one of the most overlooked (yet critical) aspects of a solid financial plan. If an illness or injury prevented you from working, how long could you comfortably cover your expenses? Disability insurance helps replace your income so you can focus on recovery, not on how to pay the bills. Furthermore, most employer-sponsored disability insurance plans don’t provide adequate coverage. We can help assess any income gaps and ensure you’re prepared.
A Quick Insurance Checkup
At the very least, we recommend doing an insurance coverage checkup every few years. Not sure if your coverage is enough (or even still relevant)? Ask yourself:
- Has anything changed, like income, dependents, or health?
- Do you know when your policies expire (or what they cover)?
- Are your beneficiaries up to date?
If you’re unsure or haven’t looked at your policies in a while, you’re not alone. That’s where we can help. Let’s review your current coverage together, identify any gaps, and make sure everything still supports your bigger financial goals. Reach out to schedule an insurance review.
1U.S. Department of Health and Human Services
2SeniorLiving.org, 2024