When you own something that is valuable to you, you make sure to protect it from loss. Not only does that include hard assets, like real and personal property, but it also includes loss of income due to death or disability. Ask yourself, “If what I have worked for my entire life were suddenly taken from me, what effect would that have on my life and those I love?”
When it comes to finances, insurance certainly isn’t as exciting to talk about as how to accumulate enough wealth for retirement or the hottest new mutual fund or stock, but it is equally as important. After all, what good is a financial legacy, a business, or an elaborate plan to protect what you have if you lose it all to death, disability, or other issues?
That’s where insurance comes in.
All of our Boise, Idaho-based advisors at IMAFS are experts at insurance planning for physicians, but we don’t sell insurance. We provide an unbiased assessment of coverage and give recommendations on whether you need more, less, or different insurance.
There are numerous types of insurances to consider.
When considering insurance, one of the biggest factors that are overlooked is what you earn. Disability insurance, both long-term and short-term, is designed to protect your income in the event of a tragedy that leaves you disabled but does not result in death. If you can’t work for any amount of time because of an accident, a disability policy can protect you from needing to dip into your other investment assets while you are healing. If the disability is permanent, there are also policies that can pay you a portion of your salary for a specified amount of time.
Life insurance can be used in estate planning as a way to pay taxes after your death. It can be used to replace income for a period of time after the death of the family’s primary wage earner. It can also be used as a way to cover final expenses at the time of death without burdening your loved ones or impacting the rest of your financial plan. Every plan is a little different. As you consider insurance planning, it is important to look at the whole picture and make adjustments accordingly.
Long-Term Care Insurance
Few things can take the lifeblood out of a financial estate as quickly as spending time in a long-term care facility. According to longtermcare.gov, you can expect to pay between $5,000 and $7,000 a month for a long-term care facility. A long-term care policy is a way to keep your financial plan on track in case of disability, stroke, old age, or any other reason that would cause you to live in a long-term care facility without draining your financial resources.
Business Continuation Planning
If you own a business, insurance planning should play a key part in your financial plan. In the event that an owner or key employee passes away or become disabled, you need a plan in place to continue running the business. A key person policy or a buy-and-sell agreement funded with an insurance policy can be a lifeline in keeping business moving, and it clarifies what happens if a partner dies or otherwise leaves the business.
At IMAFS, we look at your entire financial picture and give you unbiased advice. A professional financial planner from our Boise offices can tell you whether the insurance policies you currently have are necessary. For a no-cost inventory that includes insurance planning, contact us to set up your appointment.