Insurance Strategies

What you need to know

Having the right insurance policies in place, whether that’s life, liability, or disability, is crucial for your family’s financial well-being. That seems like a simple statement, but insurance is often a category that is overlooked and therefore neglected, especially since your policy needs will change over time.

Why is Insurance an Important Part of Wealth Management?

Insurance might not be the first thing you think of in wealth management, but it is fundamental to financial security and peace of mind. It acts as a safeguard against unexpected events, protecting your assets and ensuring your loved ones are cared for despite any turbulent life events. It’s there for the just in case moments that life brings. Insurance also plays an important role in estate planning – to maximize the assets your loved ones will receive in the future.

Understanding the different types of insurance and their importance can help you make informed decisions.

So Life Insurance… What’s Available and What Do I Actually Need?

Life insurance ensures your family is financially protected if something happens to you, helping them avoid financial hardship.

There are different types of life insurance, such as:

  • Term Life Insurance: Provides coverage for a set period, ideal for protecting your family during financially vulnerable years.
  • Whole Life Insurance: Offers lifelong coverage and builds cash value, which you can access through loans or withdrawals. This type tends to be more expensive.
  • Universal Life Insurance: Provides flexible coverage options and adjustable premiums, giving you more control over your policy.

There are different factors to consider that may influence what type of life insurance you select. Ask yourself these questions:

  • Does it cover my family? Consider financial needs like debts, mortgage payments, and education costs. Start with your home or loan debts, then add the annual living costs for your family and any future goals (like college or weddings).
  • Does it account for my income? Factor in your current income and potential earnings to determine the necessary coverage.
  • Does it supplement our existing assets? Evaluate your assets and savings to see how much additional coverage you need.

What About Liability Insurance? Tell Me More.

Liability insurance protects you from financial losses due to unintentional injuries or property damage caused by you or those in your care. It covers medical expenses, property damage, and legal fees.

There are different types of liability insurance, such as:

  • Personal Liability Insurance: Covers injuries and property damage caused by you or your family.
  • Homeowners Insurance: Protects your home and belongings from risks like fire, theft, and weather damage.
  • Auto Insurance: Provides liability coverage for bodily injury and property damage caused by your vehicle.

Consider these factors when selecting the amount of liability insurance to obtain:

  • Assess your exposure to liability risks based on your lifestyle and assets.
  • Consider the value of your assets, including your home and vehicles.
  • Evaluate the minimum liability coverage requirements in your state or municipality.

What’s the Deal with Disability Insurance? Do I Even Need That?

Disability insurance ensures you have income if you can’t work due to illness, injury, or accident. It covers a portion of your lost income, helping you meet financial obligations.

There are different types of disability insurance, such as::

  • Short-Term Disability Insurance: Provides income replacement for up to six months.
  • Long-Term Disability Insurance: Offers income replacement for a longer period, sometimes until retirement.

Consider these factors when selecting the type and amount of disability insurance:

  • Consider your income level and the percentage of income you need to replace if disabled.
  • Evaluate your expenses and financial obligations to determine your replacement income needs.
  • Factor in the potential length of your disability and other income sources.

Here’s a Few More Tips That May Help in Your Insurance Planning Efforts

  • Shop Around: Compare rates and coverage options.
  • Read Policy Details: Understand exclusions and limitations.
  • Regular Review: Ensure your coverage aligns with your current needs.
  • Employer Options: Utilize insurance options offered by your employer and supplement with additional policies if needed.
  • Avoid Over-Insurance: Sometimes people have too much insurance or are overpaying for policies. Understanding your current policies and evaluating them with an insurance expert may make sense for you.


Ok, So I Need My Insurance Strategies Evaluated… Now What?

Optimizing your insurance is crucial for financial stability and peace of mind. Clients of Rely Wealth gain access to our network of insurance professionals, allowing you to take advantage of our trusted relationships and unique expertise. By understanding different types of insurance, determining the right coverage amounts, and considering additional factors, you can build a solid insurance strategy that protects your assets and your family’s financial future.

DISCLOSURE: Investment advisory services offered through Rely Wealth Partners, LLC, a DBA of tru Independence Asset Management, LLC, a Registered Investment Advisor with the U.S. Securities and Exchange Commission. This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.

We work with highly motivated individuals and families who want to be financially complete and value clarity.

Daniel Mauser — Founder and Managing Partner