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Insurance Planning

Professional Retirement Planning with Bighorn Wealth Management

Insurance planning is an essential aspect of comprehensive financial management. Whether you're looking at life insurance, long-term care coverage, disability policies, or family health insurance plans, selecting the right insurance plan is crucial for preserving your financial future and confidence.

Why Insurance Planning?

Insurance serves a myriad of purposes. First, it is a tool for risk management. Insurance helps mitigate financial risks associated with health issues, disability, and death. Secondly, insurance can provide financial stability and support in times of need, ensuring that you or your family can maintain your standard of living. Lastly, life insurance is integral to estate planning, helping to provide for heirs and settle estate taxes. You may carry a suite of insurances while you are younger and not need them as you age, or you may carry some kinds of insurance your whole life.

Types of Insurance Plans

You are probably familiar with at least some kinds of insurance, but it may surprise you how specific insurance can be:

  • Life Insurance Planning: Life insurance offers financial protection to your dependents by providing a death benefit that can cover living expenses, debts, and future planning needs like education. 
  • Variable life Insurance: a type of permanent life insurance where the policyholder can allocate a portion of their premiums to a variety of investment options, offering potential for higher returns but also greater risk. 
  • Long-Term Care Insurance Plans: These plans cover costs associated with long-term care that regular health insurance, Medicare, or Medicaid may not cover, including assistance with daily activities and long-term medical needs. 70% of individuals turning 65 will develop a need for long-term care and 48% will require paid long-term care services.
  • Disability Insurance Plans: This kind of insurance provides income replacement if you are unable to work due to a disability, thus safeguarding your financial plan from unexpected income interruptions.
  • Key Man Insurance: Key man insurance is a type of life or disability insurance policy taken out by a business on the life of an essential employee, whose sudden incapacity or death would significantly affect the company's operations.
How to Choose an Insurance Plan

How to Choose an Insurance Plan

When choosing an insurance plan, it is important to know what kind of coverage you need and why that coverage is important. Policies can be fairly involved, so following some basic steps can be helpful:

  • Assess Your Needs: Consider what aspects of your life need protection and how much coverage is required.
  • Compare Plans: Look at what different plans offer, including premiums, benefits, exclusions, and the reputation of the insurance provider.
  • Consider Affordability: Ensure the premiums fit comfortably within your budget without undermining other financial goals. Insurance should provide a safety net, it shouldn’t be a financial burden.
  • Review Periodically: Re-evaluate your insurance needs regularly or when major life events occur (e.g., marriage, birth of a child, or a new mortgage). Bighorn Wealth will conduct a review with you to determine whether you are overpaying or need additional coverage.

FAQs

How much life insurance coverage do I need?
Life insurance coverage should be enough to cover debts, provide for dependents, and possibly contribute to future financial plans like children's education or retirement savings.

What's the difference between term and whole life insurance?
Term insurance provides coverage for a specific period and pays out only if you die during that term. Whole life insurance, however, covers your entire life and includes an investment component.

Are disability and long-term care insurance really necessary?
Yes, these insurances protect against unforeseen circumstances that can have a significant financial impact, especially when you're unprepared.

Let’s Get You Covered!

Let’s Get You Covered!

Insurance planning is not just concerned with mitigating risks, but also with ensuring a stable and secure financial future. Integrating insurance into your financial plan can protect you and your loved ones from the unexpected twists and turns of life. If you would like some personalized guidance on what kinds of insurance you might need to properly protect your financial future, contact Bighorn Wealth Management. We would love to help you get the exact amount of coverage you need without sacrificing your larger financial goals.