|At the core of every good financial plan is a way to protect your loved ones in the event that an unthinkable disaster strikes. An untimely death, long term illness or disability can cause severe adverse consequences unless you are prepared. There are many different types of insurance and many reasons for having them. At Barron Wealth Strategies, we can help you wade through the myriad of choices to make sure than you have the correct types of insurance and the correct amounts. You don’t want to have too much and pay for protection that you don’t need or worse, too little and leave your loved ones under protected.
There are many different reasons for having life insurance. It can be used to pay off debts such as a mortgage in the event of death or to pay for college if a parent dies. Term insurance is normally used to solve these problems because it is the least expensive and there is a known timeframe for which it is needed. Whole and universal life insurance are considered to be permanent insurance. These are used to pay inheritance taxes, or to equalize inheritance among your beneficiaries. One of the most important uses of life insurance is to replace your income if you die. Your spouse and or kids will need income, even after you are gone. You may need a combination of term and permanent life insurance for that. Life insurance is not meant to help you. It is meant to help your loved ones that are left behind.
Long term care insurance is a rapidly growing product. It is used to help fund the costs associated with a stay in assisted living, nursing home, or even having home health care professionals come to your home and provide care. A common error made by many is the belief that Medicare will pay for this. The truth is that Medicare only pays for a few days in a long term care facility. Long term care insurance is not meant to protect you. It is meant to protect your loved ones and the nest egg that you have spent years building.
Disability insurance is used to replace your income should you become physically unable to perform your job duties. It is meant to partially replace your earned income during your work years. It comes in both short term and long term policies.
Most of us live with the above risks every day. We each must decide who is going to bear the risk… us or an insurance company.
Contact our advisors at Barron Wealth Strategies today to start a free evaluation of your risk management and to decide if some insurance is right for you.
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