Securing a more stable financial future involves several key components, including tax projections, investing, and insurance. Pure’s Financial Advisor, Brennon Bowen, CFP®, AIF®, explores the crucial role insurance plays in protecting both you and your financial well-being, ensuring long-term stability and peace of mind.
Transcript
Today, I want to talk to you about something that doesn’t always get the spotlight, but is crucial to your financial security: insurance. When it comes to financial planning, insurance is more than just a safety net; it’s an essential tool to help protect your future. Let’s break down why insurance should be a key part of your financial strategy and risk management.
1) Protection Against Unexpected Events
Life is unpredictable. You may be financially secure today, but what happens if the unexpected occurs? Insurance is there to protect you when things go wrong. Take, for example, one of my clients—a surgeon who lost the use of his fingers in an accident. Without disability insurance, this would have meant the end of his career and the loss of his income. But because he had disability coverage, he was still able to support his family and retire within the same time-frame he originally planned for. Insurance helped him navigate a life-altering event without sacrificing his financial stability. Without insurance, these kinds of unexpected setbacks can be devastating. A medical emergency, an accident, or a natural disaster can lead to overwhelming costs that derail your financial goals.
2). Peace of Mind
One of the most valuable things insurance provides is peace of mind. When you have the right coverage, you don’t have to constantly worry about worst-case scenarios. Knowing that your assets, health, or family will be supported in times of crisis can help you focus on the things that matter most like pursuing your long-term financial goals, whether that’s saving for retirement, buying a home, or building wealth.
3). Safeguarding Family and Legacy
Insurance also plays a critical role in protecting your loved ones and your legacy. I worked with another client who was in a tough spot after her husband passed away suddenly at age 67. Unfortunately, they only had $100,000 in life insurance, and no savings to fall back on because they had planned on him working until 75. The lack of proper life insurance left her with a financial gap that was too hard to fill, and it deeply impacted her retirement plans. Proper life insurance would have ensured her financial security in the event of his untimely passing. This story highlights the importance of properly assessing your life insurance needs and not just relying on what might seem like enough at the time. By incorporating life insurance into your financial plan, you’re creating a lasting safety net for the people who matter most. This way, your family won’t be left scrambling to make ends meet during an emotional and challenging time.
4). Asset Protection and Wealth Building
Beyond protecting your loved ones, insurance can also protect your wealth. Let’s say you’re investing and growing your portfolio—what happens if an unexpected event derails those plans? Disability insurance or umbrella insurance can safeguard your income and assets, allowing your wealth-building efforts to continue even during tough times. By integrating insurance into your financial plan, you ensure that your assets remain protected and your financial future stays on track.
If you would like find out how insurance fits in to your overall financial plan, contact Pure for a free financial assessment.
Subscribe to our YouTube channel.
IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
AIF® – Accredited Investment Fiduciary designation is administered by the Center for Fiduciary Studies fi360. To receive the AIF Designation, an individual must meet prerequisite criteria, complete a training program, and pass a comprehensive examination. Six hours of continuing education is required annually to maintain the designation.
