Insurance PlanningWe don't sell insurance, we make sure you're covered
As a Fee Only firm Guide Wealth Management will not sell insurance. Instead, we will look at what coverage you currently have, and what you might need in the most impartial manner.
We will review quotes that you are offered, and also are able to recommend a selection of no load or low load insurance firms to provide you with quotes as and when necessary.
This approach results in an ability to deliver advice without the conflict of interest that comes with selling insurance. Instead, we are able to ensure you get just what you need, and nothing more.
Our approach to calculating the type of insurance, and its value follows the expense or need approach. This means we forecast future expenses within your cash flow and recommend levels to protect your plan.
Life insurance is a critical part of most financial plans. It is especially important to consider when there are substantial liabilities, such as a mortgage, or life goals like funding education costs. There are two main types of life insurance:
Whole life is the original permanent policy. Premiums paid towards whole life are allocated to both cash value of the policy, and towards the death benefit. The cash value aspect creates wealth transfer opportunities for certain clients, but is often ‘oversold’ to those who don’t need to pay the higher premiums. There are other variations on the original permanent policy, including Universal Life and Variable Life. These policies allow for investment of the cash value in a variety of ways, with the goal being to reduce the cost of the premium.
Term Life is a policy that has as finite period of duration, or ‘term’, often 15, 20 or 30 years. These policies are a good way to cover liabilities that are taken on through life, such as mortgages or plans for education funding. Broadly speaking, we find that if life insurance is needed to cover liabilities, term life often provides the most efficient solution for this.
Protecting your assets from creditors and litigation is a critical step in wealth preservation. This process includes ensuring that your liability insurance policies are working together in a cohesive manner, and also can include strategies with your attorney regarding asset titling, and the establishment of trusts to help protect from adverse action.
Disability insurance comes in two broad forms: Short Term and Long Term. The names are self explanatory, and the primary differences will be in the exclusion period, and the duration. The exclusion period relates to the period of time that must elapse prior to receiving payments. As fee only advisors, we’re not in the business of selling you disability insurance, we’ll do a comprehensive analysis, including exploring your employee benefits, and discuss if there appear to be shortfalls.
Policies can be further subdivided by the definition of disability, and are categorized into own occupation, any occupation.
1 in 4 twenty year olds will become disabled before they retire
Types of disability insurance
Own Occupation insurance is the most robust form of insurance. It is particularly useful for those with a skilled profession, such as a Lawyer or Doctor. If a disability occurs that prevents you from performing your primary profession, this type of insurance will cover lost income.
Any occupation insurance is a more complicated analysis. It will provide income when you are deemed to be unable to perform suitable gainful employment. The assessment for suitability involves considering your previous salary level, and considers if there are other suitable positions that would pay a percentage of that. As such, there will be situations where the insured is not paid out in the event of a disability, should they be able to find other sources of income.
Contact us for an initial discussion on your financial situation, we’ll listen to your goals, and discuss ideas for achieving them.