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Protect the Foundation

Protect the Foundation

November 07, 2022

Recently my son and I visited Temple Square in Salt Lake City, UT.  The Church of Jesus Christ of Latter-day Saints is currently performing major renovations on the foundation of the historic Salt Lake Temple to help better protect against seismic events.  

 

It was fascinating to see this 129-year-old building with its foundation fully exposed and worked on while the rest of the building was still standing on top.  Had the technology and engineering know-how been available during the original construction, it would have been easier to build the foundation this way before the rest of the building was set on top.  But even after all this time, through modern innovations in engineering technology, the foundation can be improved and restored.

 

Our personal financial foundation

You might be just starting to construct your own financial edifice, or you might have a beautiful financial skyscraper.  You might ask yourself, how is your foundation?  Is it protected from some of the seismic shifts that can happen?  

[Picture of blocks]

Everything in our financial life is based on our INCOME.  We depend on our income to provide our basic needs and our wants.  If a risk threatens our income, we need to take steps to protect against it.

One of the most cost-effective methods is to use insurance to shift risk away from your foundation and onto the insurance company.  We do this when we buy auto, home, and medical insurance. In exchange for a premium, we rely on the insurance company to pay to repair or restore what was lost if something catastrophic happens, so our investments in our homes, cars, retirement funds, etc. can remain secure.

There are other, even more catastrophic risks to our income we may face, and insurance strategies to protect them:

Life Insurance

A financial plan is not complete without considering how to care for your family in the event that you were taken from them, ensuring that their quality of life and opportunities don’t suffer as a result.

Each individual and family has widely varying life insurance needs that change with time – this protection can and should be affordable, and our job is to help you make informed decisions for you and the people who count on you.

 

Income Protection & Disability Insurance

During your working years, your most valuable asset, by far, is your current and future ability to earn a living. 

Most people don’t know that they’re four times more likely to become sick or injured and unable to work for an extended period of time than they are to die during the course of their career.  Yet many of us buy life insurance, but far fewer have income insurance.

Both have a similar financial impact on the ability provide income, but being faced with an illness or injury may cause greater financial stress due to the cost of appropriate medical care.

A solid income protection plan, anchored by an affordable disability insurance policy is vital to protecting your family.

 

Retirement insurance

Research shows that for those of us of retirement age, or close to it, the fear of running out of money exceeds all others, even death!  Fear and worry of running out of money limit your ability to enjoy a stress-free retirement. Appropriate insurance strategies can help protect you from this risk.

Going into retirement without a plan is stressful, even if the money is there.  We’re used to paychecks, and having that steady paycheck gives us confidence.  Retirement is no different.  We’ve found that having a paycheck you can count on creates all the difference; one that’s guaranteed and will last your entire life.  Over our years of experience with clients, we have found that assets create stress, but income creates peace of mind.

With our strategic approach to Retirement Income Planning, we look at the whole picture, and help you create a plan to create the guaranteed “pay-check” you need, while allowing for a “play-check” you want.

 

Long Term Care

Apart from taxes, the largest cost most people face in retirement is medical care – you need a plan to cover what Medicare doesn’t.

We strongly believe in making plans for this phase of life to prevent the impact on savings that medical needs can have, protecting the quality of life for you, your kids and surviving spouses.

In recent years, insurance companies recognized changing consumer needs and developed new strategies, radically changing the design of this coverage. Guaranteed premiums, benefits that last forever and a death benefit for beneficiaries are a few features that exist in the plans we love.

You can even pay for these plans with a one-time lump sum, and never have to worry about it again.

 

To Sum Up…

Making appropriate use of insurance strategies based on your unique situation can protect your financial foundation and reduce stress and worry from your life!  Let us know if you would like to learn more and see if any of these strategies would be right for you.