Last month the sports world was shocked at the tragic death of Kobe Bryant, his daughter and seven others.
As financial advisors, one of the first things we think about is, we hope his estate planning was in order! Especially for his young family and the many charitable foundations he founded and supported. We can name many celebrities who have passed away without any financial or estate planning. And the estate normally isn’t settled for years, causing conflict among family members and the loss of millions of dollars.
When you work with a financial advisor, part of the discovery process should involve planning for an untimely death, disability or long term care.
How does one protect his or her family if something unexpected happens, such as an illness or a tragic accident? What happens when the main income earner is no longer here or unable to work? Will you be able to survive financially? Will you lose your home?
Even if you are single and just getting started, you should consider, “what if something happens to me”, how will my spouse, partner, family, children or furry children be protected, when I am no longer around? Or to assure, you have documents in place, if you can’t speak for yourself.
Planning is not only for the wealthy, but for everyone! There are simple strategies and tools you can utilize. For example, you can obtain disability insurance to insure your income, obtain life insurance, make sure bank accounts are titled correctly, draft medical directives and assure beneficiaries are up to date on all retirement accounts and life insurance policies.
One of the least expensive ways to protect your loved ones is to buy a term life Insurance policy. Upon approval, you can protect your family for years at a reasonable cost.
As we age, we need to consider and refocus. The next stage should focus on protecting assets and planning for the cost of long term care. For example, long term care insurance can be a useful tool in protecting your assets for your partner or heirs.
It doesn’t have to be expensive or complicated to protect your family. It is about making sure “the what ifs” are considered and the ones you love are protected.
As life events happen, it is important to evaluate your plan with your financial advisor.
Let us know if you would like to schedule a complimentary consultation.
Please consult with a financial advisor and an estate planning attorney to assure you have the appropriate documents for your situation.
Insurance cost and approval can vary depending on your age, gender, health, smoker or non-smoker.