Protection for those important to you. Insurance is a topic that often does not get the recognition it deserves as part of a comprehensive financial plan. BrightPath Financial Advisors can provide a detailed explanation of the differences and options between insurance plans. They can also support integration of your insurance choice into your overall financial picture. This ensures seamless operation of the insurance aspect, with the other pieces of your financial plan.
Which types of insurance?
When it comes to insurance, there are a wide variety of choices available to those seeking additional protection for themselves and their family. Whole Life and Term Life are among the wide variety of options available. Generally speaking, Whole Life insurance will cover an insured until death, with a guaranteed payout. This type of insurance will also build a cash value, that, depending on terms, can be used in the future as a form of portfolio diversification. Whole Life insurance can be advantageous to those seeking a high degree of certainty in terms of both yearly cost and final payment structure. On the other hand, Term Life insurance is more suited to those seeking covered for a defined period of time. While rates for Term life insurance are generally lower than Whole, there is no guaranteed payout, and the coverage expired at the end of the policy. Beyond Whole and Term, there are many other flavors of insurance, including Universal and Variable. There are also annuities, disability and final expense insurance considerations that can add nuance to the insurance discussion. Integrating insurance protection is an essential part of an overall financial plan.
How much insurance?
Along with deciding what the correct type of insurance fits the needs of your family, it is also so important to determine how much insurance is needed. Establishing the correct amount of insurance involves weighing many factors beyond just the cost of the policy and the impact on the client’s current financial situation. It is important to take into consideration the long-term goals, and factor in the expenses that the insurance would be used to offset. Finally, combing different insurance cost/payout scenarios with a client’s overall investment and retirement picture, will create an integrated and resilient portfolio.