Instrumental Wealth reviews your insurance coverage to ensure that you are appropriately protected for your situation. Equally important, we make sure you aren’t paying for unnecessary policies—or spending too much on insurance—both of which can do more harm than good.
There are as many different types of life insurance as there are scenarios where it’s needed. Instrumental Wealth helps analyze your financial situation and determine how much money would be required to maintain your beneficiaries’ standard of living or meet the need for which you’re purchasing a policy.
We often refer to term life insurance as “renting” your life insurance. Meaning, you have it for a specified period of time for a specified price/premium. After the term runs out you will need to either go without life insurance or procure another policy. Life insurance premiums are dictated by four main factors.
- Tobacco Status
While most people don’t pick up smoking in their 50’s we know that by the mere fact people are older, a life insurance policy will more than likely be more expensive in premiums the older one gets, assuming your health stays the same. So, it’s important to factor this into your planning.
Permanent / Whole Life / Universal Life
We often refer to whole life as “owning” your life insurance coverage because it will pay a claim regardless of when some passes away as long as the policy is in force. Whole Life always possesses property characteristics like other assets. It can build equity (commonly referred to as Cash Value or Accumulated Value). These can grow in a variety of different ways. They can be used for their tax advantages, including tax-deferred growth of cash value, tax-free dividends, and tax-free death benefits.
For a majority of people their #1 asset is their ability to earn an income stream. If that income stream dries up, they will be forced to liquidate their assets to make ends meet. This can be catastrophic to someone’s long term goals for sending their children to college and/or saving for their retirement. Both short-term and long-term disability insurance policies are designed to partially replace your income in the event that you become disabled and cannot continue to work. In most cases, that partial income is 60% of your earned income. Instrumental Wealth can help you put strategies in place to maintain your standard of living.
Long Term Care
The population is aging, and lifespans are increasing. What is your contingency plan for Long Term Care? There is a 52% likelihood that one of the spouses, age 65+, will have some form of a long-term care event. These expenses also come at the end of life, which is typically when your assets are lower than when you started your retirement. It can be devasting for a retirement plan. What is your contingency plan for Long Term Care? Instrumental Wealth can help you determine your future needs through Long Term Care (LTC) Insurance.
Property & Casualty Review
Most people don’t review their personal coverage often enough to keep up with life changes. To make sure all your insurance needs are in accord, we review your Property and Casualty Insurance to make sure you are protected from financial loss and financial liability.