Insurance

Most financial planners agree that life insurance is essential for protecting families against financial loss, which is why many recommend purchasing the maximum amount needed at the cheapest cost using a term policy. Where they start to diverge in their thinking is in any discussion about life insurance as an asset.

Many people, who have achieved success and wealth through their business, have done so with their intellectual capital. What exactly is intellectual capital? This is the sum of the business’ hidden assets, such as its human resources, knowledge, intellectual property, and all of the client and stakeholder relationships that bring immeasurable value to the company.

When most people think about life insurance, it is something to be purchased when we’re young with financial responsibilities and dependents to protect. Any discussion about purchasing life insurance after we retire is often met with strong opinions as to whether or not it makes any financial sense. After all, the cost of life insurance increases significantly over the age of 65.

The prospect of suddenly having to face life with a disability that limits your ability to work in the way you’re used always seems unlikely. Disability is something other people face, maybe in old age, but not you. While disability insurance may seem unnecessary right now the facts give cause for the preemptive action.

Imagine the following scenario: You run a successful business with your business partner of 20 years. Your business partner dies unexpectedly. After the funeral, your deceased partner’s spouse shows up at your office with her two grown children. They ask for the key to your partner’s office – not to clean it out, but to move in.

For some people, getting an auto insurance quote is a lot like spinning a roulette wheel; you don’t know what will come up, and each time you spin it (getting quotes from different companies) it’s always different. Worse, there doesn’t seem to be any rhyme or reason for the quote.

Life happens, and, when it does, it sometimes has a tendency to get in the way of the things we are trying do for ourselves and our families.

Few consumer products are the object of a love/hate relationship as life insurance.  The thought of buying life insurance is not something that most physicians relish, yet, if it is done right, it can provide the greatest peace-of-mind a person can have. The key is to do it right.

For most people the difficult decision is not “if” they need life insurance, but “how much” life coverage they need.

An increasing number of people are starting to understand that their real risk exposure is not in the costs associated with repairing or replacing their car or home, rather it is in the far more costly liability risk. Yet, most people drastically underestimate their personal liability risks.