{"id":12394,"date":"2017-03-07T06:00:50","date_gmt":"2017-03-07T12:00:50","guid":{"rendered":"http:\/\/www.paristn.net\/articles\/?p=12394"},"modified":"2017-03-07T03:12:05","modified_gmt":"2017-03-07T09:12:05","slug":"frazier-allen-risk-management-demystified","status":"publish","type":"post","link":"https:\/\/www.paristn.net\/articles\/2017\/03\/07\/frazier-allen-risk-management-demystified\/","title":{"rendered":"Frazier Allen: Risk Management Demystified"},"content":{"rendered":"

\"F&MClarksville, TN<\/strong> – Let\u2019s face it: Life is a risk. That\u2019s why risk management is a crucial part of a long-term financial plan. When it comes to investments, we\u2019re talking diversification and asset allocation. When it comes to your family, health, property and income, we\u2019re talking insurance.<\/p>\n

But what kind of coverage do you really need? Take a deeper look at four useful types of policies.<\/p>\n

\"The<\/a>

The Right Mix of Coverage to Live with Confidence.<\/p><\/div>\n

<\/p>\n

Life insurance<\/h3>\n

Perception:<\/strong> It\u2019s just for people with dependents.<\/p>\n

Reality: <\/strong>It can be used as a flexible planning tool that provides liquidity, and the survivor benefit is generally not considered taxable income.<\/p>\n

Though term life insurance is designed to replace the income of a breadwinner if the unthinkable happens, what\u2019s called a \u201cpermanent\u201d policy has an investment component that can be helpful for things such as keeping the family business functioning or paying estate taxes after death.<\/p>\n

Disability insurance<\/h3>\n

Perception:<\/strong> The risk of long-term disability is too minimal to worry about.<\/p>\n

Reality: <\/strong>Sadly, today\u2019s 20-year-olds have a 30% chance of becoming disabled for at least six months before age 67, the Social Security Administration estimated in 2011.<\/p>\n

If you\u2019re out of work for an extended period, the lost income can easily reach six figures or more. Even if your profession isn\u2019t strenuous, you may not be in the clear \u2013 cancer is the second-leading cause of claims, according to insurer Sun Life Financial.<\/p>\n

What about that government safety net, you say? Workers who pay into the system are eligible to apply for Social Security disability insurance, but the average benefit in 2016 was just $1,167 a month.<\/p>\n

Considering all of this, it\u2019s best to get a professional opinion about whether you can afford the consequences of going without this type of coverage.<\/p>\n

Long-term care insurance<\/h3>\n

Perception:<\/strong> Coverage isn\u2019t needed \u2013 doesn\u2019t Medicare pay for that?<\/p>\n

Reality: <\/strong>Help with the tasks of daily living, similar to care provided in a nursing home, isn\u2019t covered by Medicare.<\/p>\n

Such aid is a common necessity. Seven out of 10 people turning 65 in this day and age can expect to use some form of long-term care, according to the U.S. Department of Health and Human Services, though only one out of 10 has planned ahead to pay for it.<\/p>\n

Securing this type of policy allows you control over the situation, making sure your future needs will be met without creating an undue burden for your loved ones. Though coverage can be expensive, there are federal and state tax breaks available for qualified plans.<\/p>\n

Umbrella insurance<\/h3>\n

[320right]Perception:<\/strong> People who are very wealthy need it.<\/p>\n

Reality: <\/strong>If you often entertain at your home, own a dog, have a teenage driver in your household or ride jet skis in your spare time, you might want to prepare for a rainy day.<\/p>\n

This basically is an extra layer of liability coverage above the limits on your home, auto and other policies \u2013 protection just in case you or a family member cause harm to someone else. For example, if your dog attacks a visitor and your home insurance covers up to $300,000 of liability, then you\u2019re on the hook for anything above that amount if the injured party sues. If you don\u2019t have the money, your wages could be garnished.<\/p>\n

Time for a fresh perspective<\/h3>\n

Facing risk isn\u2019t easy, but the protection you can gain for yourself and your loved ones makes it all worth it. That\u2019s why you should review your insurance needs once a year and after each big milestone in life. You can always call on your advisor to coordinate with other professionals in determining the proper policies and coverage for you.<\/p>\n

\"Gauge<\/a><\/p>\n

Next steps<\/h3>\n

Meet with a professional to discuss:<\/p>\n

    \n
  • A review of your insurance coverage and beneficiaries<\/li>\n
  • The role of life insurance in an estate plan<\/li>\n
  • New ways of managing risk in your financial plan<\/li>\n<\/ul>\n

    Asset allocation and diversification do not guarantee a profit nor protect against a loss.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    Clarksville, TN – Let\u2019s face it: Life is a risk. That\u2019s why risk management is a crucial part of a long-term financial plan. When it comes to investments, we\u2019re talking diversification and asset allocation. When it comes to your family, health, property and income, we\u2019re talking insurance. But what kind of coverage do you really […]<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[3],"tags":[1898,11536,11527,9451,11242,2291,10669,3194,11537,2079,1004,2293,3686,2843,11538],"class_list":["post-12394","post","type-post","status-publish","format-standard","hentry","category-business","tag-clarksville-tn","tag-disability-insurance","tag-estate-planning","tag-fm-bank-investment-services","tag-financial-plan","tag-insurance","tag-investments","tag-life-insurance","tag-long-term-care-insurance","tag-medicare","tag-raymond-james-investment-services","tag-social-security-administration","tag-social-security-disability-insurance","tag-u-s-department-of-health-and-human-services","tag-umbrella-insurance"],"_links":{"self":[{"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/posts\/12394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/comments?post=12394"}],"version-history":[{"count":1,"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/posts\/12394\/revisions"}],"predecessor-version":[{"id":12395,"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/posts\/12394\/revisions\/12395"}],"wp:attachment":[{"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/media?parent=12394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/categories?post=12394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paristn.net\/articles\/wp-json\/wp\/v2\/tags?post=12394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}