When we think about financial planning, investments and retirement accounts usually take center stage. But there’s another pillar that often gets overlooked: insurance. This area of personal finance is more about having the right coverage than chasing returns and more about protecting everything you’ve worked hard to build.
Here are some of the most common (and potentially expensive) insurance gaps I notice when reviewing financial plans, and how we assist clients in addressing them.
- Disability Income Insurance
Most people insure their homes and cars, but some overlook protecting their income, which is their primary source of funding their lifestyle and goals. A customized disability policy can protect your cash flow if illness or injury (either temporary or long-term) keeps you from working.
For those with employer coverage, we can review your benefits to determine if they will adequately cover your income or if adding a supplemental policy might be a wise choice.
- Long-Term Care Planning
As people live longer, the likelihood of needing long-term care increases. In fact, the U.S. Department of Health and Human Services estimates that 70% of Americans over age 65 will require extended care at some point in their lives. Sadly, Medicare doesn’t cover most of these long-term care needs, forcing families to self-fund or spend down assets.
There are multiple ways to fund long-term care insurance, such as through investments, annuities, or hybrid life/long-term care policies. Planning ahead with long-term care insurance can protect your retirement savings and your loved ones.
- Life Insurance Beyond the Basics
Some people depend on group life coverage through their job. However, group policies are often not portable and usually don't fully cover long-term needs like income replacement, estate taxes, or business succession.
A personal life insurance policy ensures continuity, no matter your employment status. Additionally, life insurance policies can also be used for wealth transfer, charitable giving, or retirement income, depending on the policy type.
- Business Owners’ Coverage
If you own a business, insurance gaps can be even more expensive. Buy-sell agreements, key person insurance, and proper liability coverage are vital for protecting both your company and your family’s financial future. We can help evaluate the types of coverage your business needs to safeguard what you’ve worked so hard to build.
Why This Matters
Simply put, a financial plan isn’t complete without addressing risk. While insurance may not be a glamorous topic, it’s the safety net that keeps an unexpected event from unraveling years of hard work and protection for your financial strategy.
If you’d like to review your coverage and make sure your financial plan is fully protected, let’s schedule a conversation.