Sample client recommendations.
Annual Property and Casualty Insurance Review
Review and update your property and casualty insurance: Conduct an annual review of your homeowners and auto insurance policies. Ensure your coverage limits are adequate given your current assets and potential liabilities. Consider increasing deductibles to lower premiums if you have a solid emergency fund.
Example: The Garcia family, with a home value of $500,000 and two cars worth $60,000 combined, conducts their annual insurance review. They realize their home insurance only covers $400,000, leaving them underinsured. They increase their coverage and also raise their auto insurance deductibles from $500 to $1,000, saving $300 annually on premiums. They also add a $1 million umbrella policy for $250/year to help protect against potential lawsuits. This comprehensive review helps to ensure they are adequately protected while managing their insurance needs.
Long-Term Care Insurance Integration Plan
Implement a long-term care insurance strategy: Evaluate the need for long-term care insurance as part of your overall financial plan. Consider hybrid policies that combine life insurance with long-term care benefits to help protect against potential long-term care costs while providing a death benefit if care isn't needed.
Example: Robert and Susan, both 55, are concerned about potential long-term care costs in retirement. They purchase a hybrid long-term care/life insurance policy with a $300,000 death benefit. The policy provides up to $6,000 per month for long-term care for 50 months ($300,000 total), with the death benefit reducing as care is used. If they never need care, their beneficiaries receive the full $300,000 death benefit. This strategy helps to protect them against long-term care costs while helping to ensure their premiums aren't "wasted" if they never need care.