Everything we do in life involves some element of risk. Some risks are known, and believed to be understood, while others are more uncertain and involve either probability or magnitude that we find difficult to quantify.
Picking the right life insurance is tricky. Should you go with the absolute cheapest coverage, term? Or is it better to buy a cash value policy such as whole life? What other choices do you have (such as return of premium) which may work better in your situation?
One of the more challenging aspects of advising clients about life insurance is helping them to recognize that life insurance is an “asset,” rather than an “expense”.
Recent studies show that life insurance ownership is at a 35-year low with only 44% of US households owning some form of life insurance.* That statistic likely reflects the fact that families feel the need to drop their insurance coverage ahead of other items when times get tough.
In the past long-term care insurance has been purchased primarily by middle and upper-middle class people. The wealthy tend to ‘self-fund’ their long-term care needs with extra assets which would otherwise be included in their estates.
