Investments, Insurance & Planning
Insurance
Goal-based planning can benefit from insurance products as they transfer unwanted risk to an insurance company. These products offer risk protection by providing benefits when events occur or generating income. Additionally, insurance products have unique tax advantages that can be useful for estate, survivorship planning, and legacy planning. Assessing individual goals is crucial in determining the necessity of insurance products, as with any other planning area.
Life Insurance
Life Insurance offers a tax-free death benefit to the insured beneficiaries upon their death. It can replace lost income for the owner's dependents during their working years or in retirement. Additionally, it can be used as a tax-free legacy benefit or to provide liquidity for non-liquid assets like real estate business ownership shares.
Annuities
Annuities are insurance products issued by insurance companies that allow to shift investment and longevity risks to them. By purchasing a fixed or annuity, the insurance company invests your money and pays you a guaranteed fixed rate of return or a return based on an external index, taking on the investment risk. An income annuity pays you a guaranteed monthly income for life, eliminating risk of outliving your money by shifting risk to the insurance company. Annuities are particularly effective at hedging longevity risk.
Long Term Care
Long Term Care insurance provides a monthly benefit to individuals who are unable to perform daily activities like bathing or dressing As people live longer, families must consider the future costs of care for themselves or their aging parents. Long Term Care insurance can help reduce risk protect retirement income or assets. It's important to discuss Long Term Care Insurance as part of overall financial planning, as there are various coverage periods and terms available.
Hybrid Life Insurance w/ LTC Benefit Riders
Hybrid Life Insurance with Long-Term Care Benefit Riders is a unique insurance product that combines traditional life insurance and long-term care insurance. It an income tax-free benefit upon the death the insured, but also allows the death benefit to be used as a monthly benefit if the insured is unable to perform certain daily activities. Any unused benefits will be paid tax-free upon the insured's death.