The primary objective of insurance is to shift the catastrophic financial risk of a loss to an insurance company in order to preserve assets. There are numerous reasons to purchase insurance:
- Income replacement – to allow preservation of current lifestyle in the event of the death or disability of the income provider.
- Debt protection – to cover repayment of a mortgage or business loan in the event of a death or disability.
- Buy/sell agreement – to fund a buyout in the event of the death or disability of a partner or shareholder.
- Ancillary retirement plan – to provide an income stream during retirement and a death benefit that maintains your lifestyle.
- Estate planning – to provide readily available cash to meet estate tax liabilities and estate equalization among beneficiaries.
- Health and long-term care – to protect against the expense of acute and chronic medical conditions.
Your insurance portfolio is as important and as individual in design as your investment portfolio. Our objective is to design an insurance program that balances your short and long-term coverage needs with the other demands on your cash flow (for example, mortgage payments, investments, college funding, etc). As a result, our clients will often have a blend of insurance products to cover their different needs.
An annual review with each client is essential to ensure that our clients’ current needs and existing policies remain in balance. The review is a hallmark of our commitment to quality service.
Many websites today offer calculators to assist consumers in determining their insurance needs. While calculators are a good starting point, in reality the ability to properly design an insurance portfolio is an art far more complex than can be determined by a calculator.
At Lang Financial, our hallmark is to answer your questions, help you explore your options and assist you in making the right decisions.
Contact us.