Adjusting your insurance coverage at different life stages is a vital part of your wealth-building strategy.

​Your insurance needs, like your investments, change over time. As part of a responsible strategy, you should review and adjust coverage to ensure that you are well protected.

You can build a fantastic investment strategy and have great rates on your loans, but you need the right type of protection in place; insurance offers that safety net.

Stage #1 – Just Starting Out

(Age 18 – 40) Your insurance needs to focus on income replacement: making sure that major expenses (e.g., mortgage and college tuition bills) are paid upon your death. During this stage in your life, you may be coping with multiple expenses and building wealth, it’s important to align your insurance strategies. Consider term life insurance at this stage. It is a  strong, affordable solution. You might use a level premium term policy that is maybe 20 or 30 years.

Stage #2 – Pre Retirement

(Age 40 – 60) Consider leveraging life insurance to help with retirement planning. Folks in this age range may have maxed out annual contributions to their 401(k) and may not have options, from an income perspective, to contribute to an Individual Retirement Account (IRA).

A person in this situation may consider an indexed universal life product or variable universal life product, designed to generate “high early cash value”. These products are not necessarily geared toward paying a death benefit, but rather toward accumulating cash inside of the policy.

The life insurance will protect you, but then the supplemental income and that high early cash value component deliver a lot of value.  As you enter retirement, you can maximize Social Security and IRA withdrawals, then use your life insurance cash value as a bridge strategy. Call Guy Williams to discuss the details and potential risk of these products.

Stage#3 – Extended care planning

( Age 60+) Update your insurance strategy to cover extended care needs. Options may include:

  • Traditional long-term care
  • A hybrid policy that combines life insurance and long-term care insurance
  • A life insurance product with a long-term care rider.

Long-term care insurance can be an effective estate-planning strategy.

Stage#4: – Legacy planning

Use life insurance strategies to create tax-efficient leverage so you can leave a gift to your recipient; such as a family member or charitable organization. These solutions tend to be individually tailored.

Our insurance specialists partner with estate planning attorneys to design unique life insurance solutions that meet your needs. We focus not on insurance products, but on solutions and strategies.

Let’s discuss your new strategy ➜