Risk Management and Insurance Planning

Life Insurance for a Purpose

Life Insurance for a Purpose refers to using life insurance contracts to ensure specific goals are met. Typical goals for purchasing life insurance are to provide a large enough financial benefit to the insured’s family for them to live upon. Other purposes range from simple funeral expenses to advanced estate planning and charitable gifting.

Protection of Income – Disability

Protection of Income – Disability is accomplished using income protection insurance, also known as disability income insurance, as it provides covered individuals with a replacement income should the insured become disabled and unable to work. Coverage amounts are designed to provide reasonable income replacement while maintaining an incentive to return to work.

Long term Care insurance

Long Term Care Insurance is a contract designed to helps pay for the costs associated with long-term care generally not covered by health insurance, Medicare, or Medicaid. Individuals who require long-term care are generally not sick in the traditional sense but are unable to perform at least two of the daily living activities such as dressing, bathing, eating, toileting, continence, transferring, and walking.

Annuities

Annuities are a contract with an insurance company that guarantees current or future payments in exchange for a premium or series of premiums. The interest earned on an annuity contract is not taxable until the funds are paid out or withdrawn. Withdrawals and income payments are taxed as ordinary income. If a withdrawal is made prior to age 59½, penalties may apply. The guarantees of an annuity contract depend on the issuing company’s claims-paying ability. Annuities have fees and charges associated with the contract, and a surrender charge also may apply if the contract owner elects to give up the annuity before certain time-period conditions are satisfied.

Business Succession Strategies

Business Succession Strategies are crafted to efficiently pass on leadership roles and equity - usually from the ranks of the ownership of a company - to an employee or group of employees. Also known as "replacement planning," it ensures that businesses continue to run smoothly after a company's most important people move on to new opportunities, retire, or pass away.