The purpose of insurance is to plan for the transfer of the expensive costs from a potential “adverse event” away from you and to an entity who can afford these costs. An insurance policy is a legal contract and transaction that exchanges a predictable but affordable cost from you to a third party who promises to cover the unaffordable expenses in case the adverse event happens.
Early in my career, I worked with a widow whose husband taught me the value of insurance and the value of financial planning. He bought enough disability and life insurance to “financially achieve his personal and family goals in case he was diagnosed, injured, or even died far earlier than planned. Three years later, he was diagnosed with cancer and died after a heroic year-long battle. He had told his wife three years earlier, “I want my last few thoughts in this world to be about how you and our daughter will be OK…that I have achieved my financial goals as a husband and father”. He bought enough insurance to achieve his life goals, but not so much that they could not afford to live the lifestyle they wanted. He planned well for those he loved.
The Risks We Face Each Day
Life is risky- there are so many adverse events that can occur each day that we do not want to occur because they are lethal, painful, expensive, and inconvenient to us and the people we care about. Some common risk examples include:
None of us know our future, if we did, we certainly would have all the insurance we can secure to mitigate or even profit from any “adverse event” (such foreknowledge would be considered insurance fraud).Our insurance team understands the purpose of insurance. Through our planning process and our analysis, we seek to understand the insurance coverage that you have, the insurance coverage that you need, and secure or maintain that coverage at an efficient cost. We understand that by being educated regarding the risks of “bad things happening” and the cost to avoid its related expenses, you can get the right amount of protection so that your personal and business goals continue as uninterrupted as possible.
Your Life-Legacy Insurance Specialist only serves your best interests. As a fiduciary to you and a fee-only insurance advisor, we are not paid by commission or by any third party. We do not earn more or less money based on the type or amount of insurance that we recommend or help you secure. We simply analyze your situation, make recommendations to you, and use insurance brokerage firms that find the right type of insurance for you at the right cost to protect the achievement of your goals and the continuation of your lifestyle. We are not captive or beholden to any one company or insurance solution. We are not employed to sell insurance. We are not owned by any insurance company.