In terms of protection for every need, the ideal financial plan should include life insurance, critical illness, disability income replacement, and[intlink id=”285″ type=”post”] long term care[/intlink]. One of the most common statements I hear from clients is “I can’t afford them all, I can only afford one today, which should I get?”
This is a question with answers very specific to each client but I will attempt to describe my methodology and how I approach this “priority pyramid” of sorts. No one type of life, accident and sickness product is better than the other. It is key to look at each of these products as one piece of a comprehensive risk management and financial plan, but in the event that an individual just want’s to “get one now,” how do we decide which should be number one?
My response to my clients in this situation is usually to begin by purchasing life insurance (obviously). While at certain points in an individuals life, the risk of getting a critical illness or a disability may be higher than the risk of death, any risk manager will tell you that overall, the highest risk is the risk of death. It is the only risk that is certain.
Some of us MAY get a critical illness, some may get disabled and unable to work, some may have no money to pay for [intlink id=”285″ type=”post”]long term care[/intlink] in old age, however EVERY single person on this planet will die one day. For this reason the risk of loss as a result of death should always be provided for first. Also, remember that death is the only loss where there is no chance of recovery.
Reach out to me and I will guide you through the process of deciding the best products for your family’s specific needs.