Insurance Planning

Insurance planning is an important aspect of a comprehensive financial plan that includes evaluating risks and determining the proper insurance coverage to mitigate those risks. The principal goal of insurance planning is to identify and analyze risk factors in life and seek proper coverage to attain a peace of mind if disaster strikes. The chances of recovering partly or fully are assured by having insurance. Therefore, insurance is an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling.

You need to think of insurance planning as a fluid process, never stagnant or frozen in time. As your life changes, your insurance needs will have to change accordingly to remain protected. Your focus should be on acquiring enough insurance to match risk factors for you, your family, and your wealth. Here are the elements you need to consider as you embark on your insurance planning:

1. Your age (young, middle-aged, retiree)
2. Your family status (single, married, children)
3. Your health (subsequently your family’s health)
4. Your assets (home, car, boat, etc.)
5. Your professional status (student, employed, self-employed, unemployed)
6. Your economic status (insurance access and affordability)

Insurance is designed to protect your financial security and should be a key part of your overall financial plan. Depending on the type of insurance you purchase, you or your beneficiaries receive a cash benefit if you suffer a disability, become ill or die.

There are many type of life insurance products are available and the kind of coverage that’s right for you depends on your unique circumstances and financial goals. Each of life events can change your life insurance needs.For Example:

• Buying a home?
• Starting a family?
• Are you a business owner or thinking of starting a new business?
• Thinking about retirement?
• Planning your estate?

Types of life insurance: 

• Term – flexible and affordable protection providing coverage for a specified period
• Whole Life – guaranteed, reliable, permanent protection that builds cash value over time
• Universal Life – permanent protection with tax-advantaged investment growth

Types of health insurance:

• Disability Insurance – monthly benefit providing income protection if you’re unable to work due to injury or illness
• Critical illness insurance – lump sum benefit if you’re diagnosed with a covered critical illness (provided after a standard waiting period)
• Long term care insurance – helps pay for long term care and services to protect your retirement savings and investments
• Synergy – unique solution combining life, critical illness and disability insurance in one affordable package
• Health and Dental insurance – Individual Health and Dental plans to help cover routine and unexpected health care expenses not covered by the Government Health Insurance Plan
• Travel Insurance – offers coverage for unexpected emergency medical expenses while you are travelling away from home.

What is Insurance Planning? 

Whether you know it or not, you are already doing some form of insurance planning. You are probably already managing your risks with auto, health, home, flood, earthquake or other property insurance. You may have life, disability, or long term care insurance, individually or through your work. Most of us strive for the right balance between the ability to live with a certain amount of risk and the confidence we may or may not have to replace or minimize the impact of loss. Our comprehensive insurance planning can help you in these areas.

We can assist you with assessing your risks, determining your level of risk tolerance, discovering appropriate insurance solutions, and implementing a cost effective insurance strategy.

A well designed insurance plan can help protect you from financial disaster. In designing your plan, we’ll consider:
What are your financial and family goals?
Are you properly insured currently?
Are your coverage limits enough to meet your needs?
What insurance is a necessity and what is a luxury in your case?
Does your insurance carrier have the financial stability to pay claims?
Do you have a disaster recovery plan?

During the insurance planning process, we will analyze your current needs, coverage limits and carrier quality in:
Medical insurance
Long term care insurance
Disability insurance
Property and casualty insurance
Liability insurance
Life insurance

Five steps are involved in developing your insurance plan:
Analyze your coverage needs
Determine if there are any deficiencies in coverage
Analyze the quality of your current carriers.
Determine appropriate alternatives
Make recommendations.

Consider life insurance as an example. Life insurance is primarily intended to cushion the negative financial effects on your family in the case of your untimely death. An insurance amount paid upon your death could be used for/to:
Normal daily expenses
Pay off your mortgage
Provide for tuition expenses for your children
Help with the costs of continuing to run a family business
Fund your spouse’s retirement
Pay for final expenses (funeral costs, medical bills, taxes, debts, lawyers’ fees, etc.)
Continue the support of any beneficiary — including non-profits

In addition to an amount paid upon death, certain policies permit cash to accumulate while deferring taxes.

Whether part of a comprehensive Financial Plan or as a separate Insurance Plan, we are here to assist you in designing a strategy that fits with your personal and financial goals