Broker Check

Risk Management

PROTECTING THAT WHICH WE CAN LEAST AFFORD TO LOSE

"Could you afford to replace this?" This helpful maxim helps to illustrate the point that a financial plan is not built on a firm foundation unless it provides and protects against unwanted contingencies. What happens to the plan if there is a disability, a premature death, or a fire? Managing the risks that can threaten your financial well-being is every bit as important as saving and investing toward your goals. Selecting the right insurance coverages is a critical element of any financial plan. As your circumstances change, so do your needs. We review our clients' entire portfolio regularly to help minimize risk and maximize security.

We provide solutions from the countries strongest and most trusted insurance companies. Whether you are looking for guaranteed death benefit protection, low-cost coverage for a term of years, consistently strong cash value accumulation potential, or even insuring your ability to fund your retirement in the event of disability, our advisors have a solution to meet your needs. Our broad range of insurance choices includes:

Life Insurance

Life insurance serves as the basic building block of any solid financial plan and can be a critical element of estate planning - for example, helping to protect the assets of surviving family members from taxes and creditors. Whether it is term life, permanent life or a more complex policy, we have the solutions to help protect you and your family.

DO YOU CURRENTLY have coverage that you have not reviewed in a long time?  Let us do a LIFE INSURANCE AUDIT OF YOUR COVERAGE. The industry is always changing and what you originally thought was performing well might not necessarily be meeting your goals or expectations for your current situation.

Disability Income Insurance

Protecting Your Lifestyle with Disability Income Insurance

Your most valuable asset is your ability to earn a living. If you are unable to work, disability insurance will pay you a monthly income so that you can pay your bills. Most people regard a disabling injury or illness as a remote possibility, but the statistics tell a different story.

Here are some pivotal questions to ask about disability income coverage:

  • How will you get the money to pay your bills if you become totally disabled?
  • If you have disability coverage through work is it adequate?
  • Will Social Security pay and how do you qualify?
  • What are the appropriate features of a disability income policy?
  • Will your disability income policy pay if you are only partially disabled?
  • Will your benefits increase while you are disabled to keep pace with inflation?
  • Are disability income payments taxable?

Disability income insurance is as important as medical insurance. Assume that a 35-year-old earning $100,000 per year suffers a permanent disability and can no longer work. He will lose an income stream of $3 million over the next 30 years. Shifting the risk of this income loss through disability income insurance really makes sense.

Many employers offer group disability coverage as an employee benefit. That is an excellent benefit and can serve as the foundation for your disability coverage, but it is typically not adequate by itself for several reasons:

  • The definition of disability contained in most group policies broadly interprets the ability to work thereby reducing available benefits by any earned income.
  • Group disability policies typically pay only 60% of your income – realistically only 40% since payments are taxable. There will often be a cash flow shortage as a result.

A wrap policy (increased protection that is purchased personally) may be appropriate to ensure adequate income protection.

Whether you have disability coverage through work or presently do not have any coverage, our goal is to help you understand the important aspects of disability income insurance policies and help you select the right one for you.

Planning for Long-Term Care

LONG TERM CARE INSURANCE

Protecting Your Assets with Long Term Care Insurance

The age wave is a reality – people are living much longer past retirement today. Studies show that a substantial percentage of the aging population requires some type of long-term care in the form of extensive home health care, assisted living or nursing home care. The need for care is quickly increasing.

There are a number of questions to consider in determining whether long-term care coverage is appropriate for you:

  • What is the annual cost for home health care or nursing home care?
  • Can you count on Medicare to pay?
  • Are you willing to spend down your assets to qualify for Medicaid?
  • What features of long-term care coverage will you need?
  • Will existing medical conditions preclude you from obtaining this coverage?

How do you pay for needed care while protecting the assets you have worked hard to build – Medicare, Medicaid, your investments, or long-term care insurance?

We understand there is a lot of confusion about what constitutes a good long-term care policy and who should buy long-term care insurance. We consider a number of factors (your age, net worth, marital status) in determining whether long-term care coverage is appropriate for you and, if it is, what features make sense. We will show you a comparison of available policies in the long-term care market and take the time to educate you so that you can make a decision.

The differences are found in the fine print of the contracts – not the marketing brochures.

Home, Auto & Umbrella Liability Insurance

One of the most effective tools for asset protection is personal liability insurance, which typically offers relatively inexpensive protection against a range of personal lawsuits. Yet many people do not take advantage of these "personal umbrella" policies, which supplement the standard liability limits of primary policies. Those who do use personal liability insurance often default to a $1 million starter policy without carefully considering whether that is the appropriate amount of coverage. Instead of simply choosing default coverage amounts, coverage should be discussed with competent insurance advisors, and should take into account personal net worth, personal risk exposures and related considerations unique to an individual's situation.

You may find tools like the  Insurance Information Institute's Know Your Stuff® Home Inventory website and app useful in the event of a homeowner's insurance claim. Please note: Information entered into this software is subject to the terms of use and privacy policy of the site hosting the service. Signature Advisors assumes no liability for the service.