No plan is complete without risk management.  Some of the risks that are most likely to derail a financial plan are untimely death, becoming too sick or too injured to continue working, or an extended long term care need.  There are insurance strategies we can use to address each of those risks, or after careful thought we can help clients decide to retain those risks.

• Untimely Death: Life insurance can be used to cover the risk of loss of income after the death of a breadwinner, or provide liquidity needs for a business or an estate.
• Disability during working years: Disability income insurance can be used to replace income for a working age person who through illness or injury becomes unable to continue working.
• Extended Long Term Care Need: Long term care insurance can be used to help cover the devastating costs of an extended long term care stay.

Each of those areas is complex, with many different options.  Our team can consult with you to help determine if you need one or more of these important protections in your plan.

Frequently Asked Questions About Risk Management

• How much should I have in my emergency fund?
  • While any emergency fund is better than nothing, typically 3-6 months of living expenses is a good target. This means is a family spends $3,000/month a good emergency fund target could be between $9,000 and $18,000.
• When should I get life insurance?
  • There are number of different reasons for life insurance. However, the most common reason for life insurance is to replace your income for the people who depend on it.  This could include your spouse, partner, children, or other dependents.  In this situation life insurance becomes necessary when you have people who are dependent on your income.
• When should I get long term care insurance?
  • The theoretically ideal time to buy long term care insurance is right before you need it, however it is impossible to predict when that will be. It’s a balancing act between applying early and paying a smaller premium; applying later and paying for a shorter duration and ensuring you are still able to qualify.  Many professionals recommend applying between 60 and 65.