Managing risk through insurance and other vehicles can be an important part of a comprehensive financial plan, for individuals, families, and especially business owners.
As independent insurance agents with no house brands or proprietary products, BDMP Wealth Management offers objective, independent advice on insurance issues, especially life, disability, and long-term care insurance. For clients who desire it, we can implement our insurance recommendations by actually placing (buying) the insurance, as we are fully licensed to sell life, long-term care, disability, and health insurance.
Life Insurance:
The first question in evaluating life insurance, whether already in existence or contemplated, is whether there is a need for life insurance at all. If the answer is in the affirmative, the questions are the following: why is the life insurance needed, how much death benefit is needed, for how long is the death benefit needed, and what type of policy is most appropriate (term, cash value insurance, or some combination of the two)?
Objective Review of Existing Life Insurance:
In the past, life insurance was often purchased and then forgotten.Because of the changing insurance landscape, we at BDMP Wealth Management believe that an objective review of existing life insurance policies can often be critical to the success of a financial plan. This is particularly true for older cash value policies. Many so-called permanent life insurance policies were sold with unrealistic assumptions as to interest rates or market returns. As a result, such policies may not perform as planned. Consequently, even if the premiums are paid on time, the policy may still lapse before the death of the insured. This result has the potential to wreak havoc with an individual's estate plan and a family's financial future. The objective review evaluates the current track of the existing policy and explores available alternatives, including rescue of the existing policy, surrender of the policy, sale of the policy, and replacement of the policy.
Even in situations where the result is not quite as drastic as the lapse of a policy, an objective review of existing policies can prove highly beneficial.Costs for term policies have declined, and often a policy that was purchased just a few years earlier, can be replaced with a less expensive policy. This is particularly true if the client's health has improved or if he or she has improved health habits by stopping smoking or implementing an exercise regime.
Disability Insurance:
Review and discussion of disability insurance (DI) is also an essential part of the financial planning process. Every professional and business owner should weigh the impact on his or her family and business should an extended disability occur. DI is a fast-changing insurance arena, and all too often is overlooked by professionals and business owners as well as financial advisors. Especially worthy of discussion for business owners is Disability Buy-Sell insurance.
Long-Term Care Insurance:
No financial plan is complete without a discussion of long-term care insurance. While not the right choice for every client, it is important that every client evaluate how the family might finance long-term care should the need arise.Long-term care insurance is a complex financial vehicle with many moving parts. Different insurance companies have different rates for clients at various ages and stages of life. We help our clients determine which design is appropriate for their situation, and then go into the marketplace to price the design with a number of top-tier carriers to determine which is the most competitive.
