Following the post-COVID stimulus hangover in 2022, the bull market has continued to run. One of the key factors was the Federal Reserve’s decision to
Protecting Your Assets with Insurance
There are many “it’s never too late” quotes about life. It’s never too late to be happy, to say you’re sorry or to fall in love. Unfortunately, purchasing insurance is one instance where you can be too late, which is why it’s important to review your coverage on a regular basis.
Certain major life events are an obvious trigger for an insurance review: marriage, the birth of a child, retirement, divorce. As they should, these events often force you to make a decision about coverage. Absent these events, however, there may be long periods of time where your insurance policies lay dormant. You may not even really remember what coverage you have — or perhaps more importantly don’t have — until you need it. Below are some tips for reviewing your existing policies:
- Homeowner’s and Auto: Is your trust listed as a named insured on your policies? This easy to overlook policy error can mean you have unintended risk exposure if someone is injured on your property or by your actions as a driver. Make sure you and your trust are both named on all policies.
- Umbrella: If you have significant risk exposures such as teenage drivers, a pool, a dog or domestic workers and you have a sizable asset base it is important that you have appropriate protection against liability claims. An umbrella policy is a cost effective way to provide additional coverage that sits on top of your homeowner’s and auto policies. If you already have umbrella coverage, is it sufficient? The premium to increase coverage from $1 million to $5 million can be relatively inexpensive and well worth it.
- Life Insurance: Many term policies are purchased when there are young children at home and a large mortgage in force. If your children are now self-sufficient adults, your mortgage is paid off and you have enough assets to support a surviving spouse, your need for insurance may have changed. You may no longer need it at all — or for larger estates over $12 million, insurance may be the ideal way to help cover estate taxes.
- Health: Group health insurance plans typically offer the best coverage at the lowest price, so staying on as long possible, even with COBRA, is generally advisable; however, your specific situation should be reviewed. If you’re nearing age 65 and you’re still covered by a group plan, be sure to understand the coordination of benefits with Medicare.
- Disability: If you are in your prime earning years and still growing your investment portfolio and retirement assets, your income will ideally be protected by not only life insurance but disability insurance. Many employers offer both short-term and long-term disability insurance policies, which can be a relatively inexpensive way to protect your most valuable asset – you.
- Long-Term Care: The decision to purchase long-term care insurance is a very personal one based not only on the size of your portfolio, but your personal and family medical history. While you may be planning to “self-insure” against this risk, be sure that you’ve fully explored your options. Many life insurance policies now have a provision for long-term care benefits making it not a matter of if you’ll use the policy, but when.
Insurance plays a critical role in a successful financial plan and should be treated as the valuable asset that it is. If you are unsure about whether or not you have appropriate coverage, or if it’s been awhile since you’ve had a full-scale review, your Sand Hill Wealth Manager is happy to help.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
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