Insurance

Insurance is not an expense. It is an investment.

Insurance is not an expense. It is an investment bought with money you have today in order to secure future benefits for tomorrow.

Insurance may represent a critical component of your financial plan. As with any investment, it can be a mistake to have too much insurance, and it can be costly if you don’t have enough. Instead of focusing on the cost, we ask that you keep sight of the goal: potential return.

When you hear the word insurance, what types of insurance come to mind? While there is an insurance product available for every situation, this does not mean that you need it at all, or that you should carry hundreds of thousands of dollars of coverage. It simply indicates that we must assess the risks in your life and determine whether you might want to protect yourself from any of them. A brief description of the most common types of insurance follows.

Life insurance

Life insurance is a hedge against one’s inevitable death and delivers money when it is most needed. It can also be a vehicle to accumulate money to be used during your lifetime. There are numerous types of policies in the marketplace and many variations within each type.

The two basic types of life insurance are term life and permanent (cash value) life. Term life provides coverage for a specified period of time, while permanent insurance provides protection for your entire life. Permanent life insurance can be further broken down into several types, including whole life, variable life, and variable universal life. Your financial advisor can assist you in selecting the right type for you by evaluating your need for protection, your goals for your family and business, and your cash flow. He or she can then recommend a product and an insurance company and also help you decide whether your life insurance should be owned by you or by a trust.

 

Disability insurance

The threat of a major disability poses one of the greatest risks to your income. A serious illness or injury can put you out of work for a prolonged period, or even permanently. If you had to stop working, how would you meet your expenses? Disability insurance policies pay you a benefit that replaces part of your earned income—usually 50 percent to 70 percent—when you cannot work. Many employers provide short-term and long-term disability insurance. Your financial professional can evaluate a shortfall between your living expenses and your income sources during a disability.

 

Long-term care insurance

Your chances of requiring some sort of long-term care increase as you get older. Will you have the financial resources to fund a prolonged nursing home stay for yourself or for a loved one? Long-term care insurance pays a selected dollar amount per day (for a set period) for long-term care expenses, whether provided in your home, assisted living facilities, adult day-care centers, hospices, or nursing homes.

 

Business insurance

No matter how careful you are in running your business, accidents happen. If you are a business owner, you need to plan for these and other risks. You may be interested in several types of insurance coverage: property and casualty insurance; liability insurance; and group health, life, and disability insurance coverage for your employees. You can buy various types of insurance protection separately, or you can purchase one package that covers many potential hazards. You can also use insurance to protect your business against the loss of a key employee or to transfer a business interest at your death or disability.

 

Other forms of insurance

There are many other types of insurance, including auto insurance, flood insurance, travel and accident insurance, insurance for your boat or other watercraft, umbrella liability insurance, and even pet insurance. Talk to your financial professional for more information about any or all of them.

Fixed insurance products and services offered through Loring Advisory Group or CES Insurance Agency.