Income and Wealth Protection falls under the category of risk management. When we talk about risk management the first thought is; how do I insure myself against the risks we will face? There are multiple types of insurance available to manage risks, in addition to other strategies discussed on previous tabs.
Cash Value Life Insurance Policies have a death benefit value and they have a living benefit value which includes the cash value as well as the fair market value for transfer of a policy to a third party buyer such as Berkshire Hathaway. Most individuals are not aware of the options available to them to convert a policy to cash during their lifetime hence roughly 88% of life insurance policies lapse or are surrendered for less than their fair market value.
Cornerstone will help clients during the financial planning process understand:
The problem with term insurance
When term insurance makes sense
LTC funding solutions i.e. LTC insurance and reverse mortgages
Using Insurance solutions to mitigate market risk
Using insurance to mitigate longevity risk
Using Insurance to mitigate illiquidity risk
I N S U R A N C E S O L U T I O N S - M A N A G I N G R I S K