Insurance is a Strategy, Not a Bill
- We continually update our clients’ life and disability projections to ensure their coverage is appropriate for current and anticipated life circumstances.
- No one likes paying for things they don’t use. However, the risk of being underinsured can have devastating consequences for you and those closest to you.
- Obtaining the right coverage is not a one-and-done exercise. Have your policies reviewed regularly to make sure you eliminate gaps or exposures.
I don’t run into many people who enjoy paying their premiums for life and disability insurance. Unlike most things you purchase, life and disability insurance is an intangible product – something you know you need, but hope you never use. Sure, you can roll the dice and participate in life underinsured or even uninsured. But with that approach, you risk financial devastation for your spouse, children, heirs, business associates, and others who are important to you. Who wants that on their conscience, just to save a few dollars?
The cost of being adequately insured is well worth the peace of mind you gain, knowing that your family, your business, or your practice is well-protected if something happens to you. Unfortunately, many people (and agents) look at insurance simply as a one-time transaction and put little thought into the appropriate coverage and product(s) for each person’s specific situation. Undoubtedly having some insurance is better than having none, but is that coverage enough to protect the people closest to you? Can they maintain their lifestyle and/or business operations without making significant and painful changes?
As with everything we do here at Soundmark, we approach life and disability insurance from a planning standpoint first. We start with preparing retirement projections for each of our clients. We then modify those projections based on the likelihood that our client will have a premature death or disability event. I know … it’s not the most enjoyable conversation, but it’s a discussion that needs to be had – sooner rather than later.
We then adjust each client’s retirement projection for their expenses, savings, and cash flow needs that would have to be covered in the event they suffered a sudden loss of income. These additional lump sum and regular cash flow considerations might include funding for a child’s education, paying off the mortgage, providing regular cash flow for a non-working spouse, or any other financial goal that was established for the family.
Only after performing our analysis, do we discuss the amount of coverage our client’s need and the product(s) that are right for their unique situation. The decision to buy insurance is based on well-thought-out assumptions. It is not about the sale. It’s about the peace of mind you get from knowing that you have financially protected the people you care about most.
WE HAVE YOUR BEST INTEREST IN MIND
Your financial situation and goals are always changing, sometimes significantly, as you move through life. You start having children. You buy a home. You buy a second home, you pay for your children’s education, your business grows, and you retire – just to name a few milestones. We revise your retirement projections on a continual basis and update your life and disability projections to ensure that the insurance coverage you have today, is appropriate for your current and anticipated life circumstances.
If you or someone close to you has concerns about their insurance needs, please don’t hesitate to contact us. We offer complimentary initial consultations through our Second Opinion offering.
Todd Flynn, CPA, CFP® is a Principal at Soundmark Wealth Management, LLC. Todd works closely with physicians, business owners, and other high net worth individuals to help them define their financial goals and implement an ongoing financial planning process.