Insurance planning is a part of most families overall financial plan. Life insurance is most commonly used to protect your family from any financial effects of you and/or your spouse’s premature death. However, it can be difficult to think about or plan for such an event. And, unfortunately, adequate insurance planning is often put off until it’s too late.
Life insurance planning is not only for those who support a family. There are several reasons for thorough life insurance planning. For example, have you recently purchased a new home? Have you recently been married? Have you made career changes? Other key purposes of life insurance include retirement and estate planning. There are many benefits of insurance.
When you are planning for life insurance, the financial soundness of the insurer is a critical concern. You want some assurance the company will be around in case you aren’t. For insurance companies, the major credit agencies like Standard & Poor’s rate claims-paying ability.
You can get reports over the Internet. You can always contact the insurance company and ask about its ratings, but it’s best to get this information independently. In general, go with an insurer rated A or better; the most financially sound insurers are rated AAA, though some rating agencies use slightly different letter grades.
Although it may sound simple, there are many things to consider when planning for insurance. There are many ways to protect your family with life insurance. So, consulting with a life insurance professional can be vital!
At Clay Northam Wealth Management, we work closely with our clients with their Insurance Planning to analyze the benefits of insurance to their specific needs. It is a piece of our comprehensive financial planning process. Servicing all of Southern California, we havetwo convenient offices located in the Los Angeles, and Orange County. Please do not hesitate to contact our offices to see how we can be of value to you.