Presenters:
Shannon McNulty, Founder, The Village Law Firm
Erin Ardleigh, President of Dynama Insurance
John Pugliese, Producer at Alliant Private Client
The Role of Insurance in Estate Planning
Shannon discussed how insurance is integral to a solid estate plan. She highlighted common issues such as insufficient coverage during major life changes and the necessity of regular policy reviews. Shannon stressed the importance of understanding policy details to avoid unexpected expenses and ensure financial protection for loved ones.
Comparing Insurance Policies: Term vs. Permanent
Erin detailed the differences between term and permanent life insurance. Term insurance provides temporary coverage for specific periods, ideal for financial obligations like mortgages. Permanent insurance, including whole life and universal life, offers lifelong coverage, often used for estate planning and legacy creation. Erin advised that while term insurance is generally more affordable, permanent insurance is essential for those planning to leave a lasting legacy or cover estate taxes.
Common Insurance Mistakes and How to Avoid Them
The presenters discussed the top mistakes people make with personal insurance:
- Relying solely on employer-based coverage: Employer-provided insurance may not be sufficient or portable.
- Not comparison shopping: It’s crucial to explore multiple options rather than sticking with one company.
- Overlooking policy reviews: Regular reviews ensure that coverage remains adequate and relevant.
- Bundling policies without research: Bundling might seem convenient, but it can lead to higher costs without sufficient coverage.
- Not engaging the help of advisors: Financial advisors, attorneys, and independent brokers provide valuable perspectives.
Importance of Adequate Coverage
Erin emphasized the need for adequate life insurance coverage, especially for families. Life insurance should provide income replacement and cover significant debts like mortgages. It can also help in maintaining illiquid family assets and ensuring a balanced inheritance. Erin highlighted the misconception that insurance should only be considered an investment, stressing the primary purpose is protection against unforeseen events.
Disability and Long-Term Care Insurance
The webinar also covered disability and long-term care insurance. Erin noted that disability insurance is crucial, given the high likelihood of being out of work due to illness or injury. Long-term care insurance, particularly hybrid policies that combine life and long-term care benefits, provides essential coverage for future healthcare needs. Erin advised looking into these policies in your 40s to secure better rates and coverage.
Property and Casualty Insurance Insights
John shared insights on property and casualty insurance, highlighting the significant differences between insurance companies. He explained how high-value insurance carriers cater to affluent clients with comprehensive coverage and superior claims experiences. John advised against relying solely on mass-market insurers, which often fall short in covering high-value assets and properties adequately.
The Current Property Insurance Market
John addressed the current challenges in the property insurance market, driven by factors like climate change and rising construction costs. He emphasized the importance of advocacy in obtaining favorable terms and the role of independent brokers in navigating this complex landscape. John also discussed the benefits of personal cyber insurance, flood insurance, and appropriate coverage for valuable collections and liabilities.
