Insurance is an important part of your overall financial plan and should be purchased for protection and for peace of mind. Generally, we advise to minimize insurance costs by using high deductibles and only insure for catastrophic losses that would cause a significant reduction in net worth. A long-term financial goal is to accumulate enough net worth to be effectively "self insured" against many of these risks.

Life Insurance Life and disability insurance are necessary for protection against loss of income from the insured. Therefore, instead of paying premiums for children and non-working spouses, we generally recommend using the money to fund retirement or other investment accounts for these individuals. Also, we generally do not advise having life insurance policies as an investment vehicle or a "private retirement plan".

Term Insurance is the purest form of life insurance. Simply, the insurance company agrees to pay the face value of the policy upon the death of the insured person. You can choose between annually renewable term, where the initial premiums are lower but increase each year, or level premium term insurance where you can lock in the premium for 5, 10 or more years. Usually level term is recommended, remember the goal is to reach a point where life insurance is no longer needed, so, we choose a level premium policy that will insure the client to that date. If you are like most and have a whole life or universal life policy please contact us to discuss all of your options.

Medical Insurance This is one form of insurance most clients should have for protection against large unforeseen expenses. If you are healthy, a large deductible can significantly reduce your premiums. However, cost is not the only consideration, it is very important to have a superior quality health insurer to handle your family's health care needs and who will pay their claims. For self-employed or business owners there is a new product called a Medical Savings Account (MSA) which offers many attractive features as well as income tax benefits to the client. Please call for more details.

Auto Insurance Again high deductibles are recommended. Always remember to have liability protection covering automobile accidents. Sometimes this protection can be arranged under an umbrella clause with your home insurer and this should be investigated. Be aware of extras or other charges on your policy for coverage that you do not want. If the asset value of your vehicle is not significant to your total net worth you should even consider declining coverage for collision & comprehensive insurance for your car.

Home Insurance This insurance is required if you have a mortgage, and should be carried in all cases where home equity is a major part of total net worth. Replacement value insurance should be purchased to provide continued protection for future inflation. If there is a risk for water damage buy specific flood insurance as most home policies do not cover this.

Other Insurance Specific illness insurance (cancer etc.), extended product warranties, and certain supplemental insurances should, in most cases, be avoided and generally are not recommended.

Please contact us to arrange a review of your individual policies and situation.

Please contact us today for a free initial consultation. .
info@plusfinancial.com Phone 941-358-9119
Fax 941-358-9905

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