You’ve consulted with your adviser about your portfolio and estate. Now it’s time to talk about an issue you might not have considered: an integrated insurance plan.
“Too many people believe that a financial plan is about saving and investing,” says Bob Burger, CFP at Murphy Capital Advisors in Glendale, AZ. “But your plan needs protection.”
Three key topics to raise:
Given that you’re three-and-a-half times more likely to become disabled than to die, put LTD at the top of your list, especially because your company plan could have huge gaps in coverage, says J. Landon Loveall, founder of Cumberland Wealth Planners.
LTC is expensive, but it can be cheaper if you sign on when you’re younger. If you’re in your 40s and you’ve maxed out your retirement but still have money to save, Loveall suggests a “10 pay” policy, wherein your long-term care insurance is paid for in 10 years.
“People often don't have enough,” says Kenneth Robinson, an adviser in Cleveland. “Someone with $700,000 in assets may have $100,000 in auto coverage. If they're sued, that money can go quickly.”